Lumbini Bikas Bank Limited (LBBL) Revises Dividend; Even More Bonus Shares Proposed

Lumbini Bikas Bank Limited (LBBL) has revised its dividend proposal.

The company had previously proposed a 13.712% dividend for the fiscal year 2077/78. The 407th meeting of the board of directors held on Kartik 8 decided to distribute the dividend on the paid-up capital of Rs. 2.90 Arba. 10% bonus shares worth Rs 29.06 crores and 3.712% cash dividend (including bonus shares tax purpose) worth Rs 10.78 crore have been proposed.

However, Nepal Rastra Bank instructed the company to revise its dividend proposal, since it did not comply with the central bank's directive regarding dividend distribution. As such, LBBL has now proposed a 13% bonus share worth Rs. 37.78 crore and 0.6842% cash dividend for tax purposes worth slightly over Rs. 1.98 crores.

The dividend will be distributed only after endorsement by the company's upcoming AGM.

As of writing, LBBL has an LTP of Rs 596.