Nepal Investment Bank likely to pledge 35% dividend this time around, too

ShareSansar, September 5:

Nepal Investment Bank Limited, the commercial bank with the largest client base, has forwarded its preliminary balance sheet to the central bank as per which it plans to offer 35 percent dividend for the last fiscal year 2070/71, according to sources.

“We have forwarded the preliminary balance sheet to the central bank, outlining our plan to distribute 35 percent dividend,” said a high-ranking NIBL official. “However, since it is just a preliminary balance sheet, our BoD is yet to meet to pledge the dividend, which again will be subject to the approval of the central bank.”

It is welcome news since NIBL’s net growth was more or less stagnant last fiscal year as compared to its growth in the previous fiscal year 2069/70.

Asked if they were planning to issue the dividend in the form of bonus share or a mix of both, he only said that the dividend may be similar to what the bank offered last year.

Last year, NIBL had offered 25 percent cash and 10 percent bonus shares to the shareholders from the net profit it posted it the previous fiscal year.

The commercial bank with the largest number of account holders had earned a net profit of Rs 1.99 arba in the last fiscal year.

It may also be noted here that NIBL had distributed 30 percent dividend—25 percent bonus share and 5 percent cash – from the net profit it posted in the previous fiscal year of 2068/69, and it had pledged 50 percent dividend – 25 percent bonus share and 25 percent cash in the fiscal year 2067/6.