Global IME planning AGM before Dashain; expect impressive dividend

ShareSansar,  September 3:

Shareholders of Global IME Bank are poised to have a great festive season this time around as the bank is not just in a position to pledge impressive dividend but is also planning to hold its AGM before Dashain.

“We forwarded our preliminary balance sheet to the central bank last week itself,” Global IME’s company secretary Bishnu Baskota told Sharesansar today. “We are planning to hold the AGM before Dashain though it all depends on how quickly the central bank approves the balance sheet. We have been urging them to approve it as soon as possible.”

He further said that there aren’t much issues with the amount provisioned for possible loss or the non-performing loan.  Hence, the shareholders can expect better dividend this time around.

According to another high-ranking source at the bank, Global IME is expected to pledge around 30 percent dividend, including bonus shares, for the last fiscal year. However, since the central bank is yet to approve the balance sheet so that the Global IME’s BoD could formally decide the exact amount of the dividend, the shareholders may have to wait for a few more days for that.

“All I can say at this point is that there is a lot of room to be optimistic if you go through our financial report for last fiscal year’s fourth quarter,” the high-ranking official added.

Back in July last week, Global IME Bank with which Commerz and Trust Bank Nepal Limited has merged, had stated that it has posted a net profit rise of 98 percent in the fourth quarter as its net profit rose to Rs 1.01 arba, up from Rs 44.92 crore in the corresponding quarter last fiscal year 2069/70.

It may also be noted that the bank, which had pledged 15 percent bonus share last year, now also has reserve and surplus of Rs 2.23 arba.

Besides the merger, Global IME’s profit was propelled by its business as well a huge sum of Rs 41.09 crore it managed to write back from the amount it had provisioned for possible loss.

Its net interest income surged to Rs 1.75 arba up from Rs 1.23 arba in the fourth quarter.

The bank had mobilized Rs 52.29 arba in deposit and Rs 43 arba in loan as compared to Rs 34.11 arba in deposit and Rs 26.99 arba in loan by the end of the corresponding quarter.

It has also provisioned Rs 33.19 crore for possible loss by the end of the fourth quarter.

The bank’s non-performing loan has, however, gone up from 1.64 percent in the fourth quarter of the previous fiscal year to 2.37 percent.

Global IME Bank’s EPS stands at Rs 24.41, P/E ratio at 28 and its net worth per share stands at 153.86.