Himalayan Bank AGM today to approve 15 % dividend

ShareSansar, March 21:

Himalayan Bank Limited has called its Annual General Meeting today, which, inter alias, is expected to endorse 10 percent cash dividend and 5 percent bonus shares to the shareholders from the net profit it earned in the last fiscal year 2069/70.

The 21st AGM of the commercial bank being held at the Tribhuvan Army Club is endorsing the bonus share to shore up the capital base of the bank, according to the bank.

Himalayan Bank had posted a net profit of Rs.102.44 crore in the last fiscal year.

The dividend has come as a relief to the shareholders who were anxious about the financial health of the bank following the Melamchi project row last year.

The BoK had issued guarantee, risk losing US $ 6.6 million to pay as counter guarantee amount to MWSDB after their client — China Railway 15 Bureau Group Corporation — failed to complete the construction of the tunnel of MWSDB.

Likewise, Bank of Kathmandu stands to lose $ 6.62 million and Euro 1.4 million for guarantee made for the Chinese contractor’s performance bond.

The case is sub judice in a Chinese court while the Melamchi is also dragging both the banks to court in Nepal.
 
After the Chinese party fled last year, the Melamchi Water Supply Development Board (MWSDB) has been pressing the BoK and the Himalayan Bank to clear the due.