Investors Accuse Banks of Irresponsibility as AGMs Delayed: Regulatory Concerns Emerge

Three commercial banks and six development banks in Nepal are facing criticism for failing to hold their annual general meetings (AGMs) on time, attributing the delays to various reasons and investors accusing banks of irresponsibility. This delay not only impacts the shareholders but also raises regulatory concerns.

Nepal Investment Mega Bank, Prabhu Bank, and Agricultural Development Bank Limited are among the financial institutions unable to convene their AGMs by the end of Poush. Agricultural Development Bank Limited cited extended audit duration, particularly at a challenging hilly branch, as the primary reason for the delay, according to Hari Bahadur Ale, an official addressing the bank's complaints.

Bijendra Suwal, Deputy CEO of Nepal Investment Mega Bank, explained that the merger with Investment Bank caused delays in reconciling accounts, resulting in the postponement of their general meeting. This delay raises concerns among investors who depend on AGMs for timely information and dividend declarations.

Six development banks—Narayani Development Bank, Karnali Development Bank, Excel Development Bank, Corporate Development Bank, Sindhu Bikas Bank, and Green Development Bank—have also not conducted their AGMs by the end of Poush, failing to declare dividends for shareholders.

Investors express frustration over the lack of information and the inability to plan investments due to the banks' irresponsibility. According to Section 67 of the Companies Act 2063, public companies must provide notice of AGMs at least 21 days in advance, complying with specific procedures for shareholder notification.