Mirmire Microfinance revises dividend to 30.80% bonus only; no cash dividend for tax

Mirmire Microfinance Development Bank Limited (MMFDB) has revised its proposed dividend as per instructions received from Nepal Rastra Bank (NRB). NRB has directed the microfinance company to allocate enough funds for Customer Protection Fund, due to which it has decided to transfer the earlier proposed 1.62% cash dividend (for tax) to the Fund. Now, shareholders of MMFDB should pay tax for the bonus shares themselves. Earlier, the 120^th BOD meeting of the company held on 6^th Mangsir, 2074 had proposed 30.80 percent bonus share and 1.62 percent cash dividend for tax purpose to its shareholders from the net profit it earned in the last fiscal year 2073/74. Now, 121st BOD meeting of the company held yesterday has decided to provide 30.80% bonus share only. MMFDB has earned net profit of 52.29 lakh in the first quarter of fiscal year 2074/75. Its paid up capital at the end of FY 2073/74 stands at Rs 3 crore. It had also issued 50% right share, after which, its paid up capital has reached Rs 4.50 crore.  After issuance of 30.80% bonus share, the paid up capital will reach Rs 5.424 crore. It had also endorsed 100% right shares on its paid up capital before bonus i.e. Rs 4.50 crore. After issuance of this 100% right share, its paid up capital will reach Rs 10.38 crore.