NCHL concludes 11th AGM; endorses whopping 40% dividend for its shareholders

Nepal Clearing House Ltd. (NCHL) has concluded its 11^th Annual General Meeting on 12^th January 2023 (28^th Poush 2079) for the fiscal year 2078/79, at Hotel Crown Imperial, Kathmandu. The AGM approved the issuance of 38% bonus share and 2% cash dividend for tax purpose. The paid-up capital of NCHL will be NRs. 783,375,768 after the bonus. The increase in capital will be used primarily to support its investments in National Payment Switch, additional payment systems, and enhance risk management systems.

The net profit of the company has increased by 40% during the FY 2078/79, which is mainly due to the increase of over 57% of transactions processed through NCHL. The return on total equity remained at 24.5% with NRs 255 as the net worth per share at the end of fiscal year.

NCHL is promoted by Nepal Rastra Bank, commercial banks, development banks and finance companies, with holding pattern of 10% by NRB and 90% by the BFIs. It primarily implements and operates national payments, clearing and settlement infrastructures. It processed total of 70.4 Million transactions equivalent to settlement value of NRs 15.75 Trillion through its clearing and settlement systems including NCHL-ECC, NCHL-IPS and RPS during the fiscal year 2078/79. It has also been operating various channel platforms including connectIPS, CORPORATEPAY, connectRTGS, National Payments Interface (NPI) and NEPALPAY QR, with recent implementation of Retail Payment Switch (RPS) as part of National Payment Switch.  It had 59 BFIs as its direct members with access to over 6,212 bank branches and over 73 non-bank institutions as indirect or technical members within NCHL’s network at the end of Ashadh 2079.