NRB endorses 31.58% dividend pledged by ADBL; BoD to announce AGM shortly

ShareSansar, March 26:

Nepal Rastra Bank has formally notified Agricultural Development Bank Limited (ADBL) that it has approved 31.58 percent cash dividend pledged to the shareholders for the last fiscal year 2069/70.

“Now that we have received the approval from the central bank, our Board of Directors will meet later today or at the earliest to announce our Annual General Meeting,” ADBL’s company secretary Poshan Raj Lamichhane told ShareSansar today.

With this the long wait for dividend is finally over for the shareholders of the state run giant bank.

The market has reacted positively as ADBL scrip was traded up to Rs 518 as the market opened today, and the bank scrip had traded more than 1.2 crore.

Lamichhane further informed ADBL is now gearing up to hold the AGM within Chaitra.

The 482nd BoD meeting of the state-run commercial bank had offered the dividend in February.

This is the highest cash dividend pledged by any state-run bank and second highest by commercial bank in the country for the last fiscal year, following 50 percent cash dividend offered by Everest Bank Limited.

It may be noted that Nepal Rastra Bank had refused to grant permission for the dividend mainly due to the bank’s failure to convert Rs 16.25 crore issued capital to paid-up capital.

This despite the fact that ADBL had posted an impressive net profit of Rs.225.99 crore in the fiscal year 2068/69.

All in all, shareholders are expecting better dividend for the current fiscal year as ADBL has been much better this year.

Moreover, the government has already decided to divest its 30% stake in the bank and bring in foreign strategic partners to improve the management and performance of the bank.

While the government is currently evaluating the price of its shares to be sold, the bank management is actively engaged in the process to attract foreign partners through global tender, according to sources and share investors, privy of the development.

The state-run bank with one of the largest client base and branches has officially initiated the process to forger international strategic partnership for better management and performance of the bank.

As part of its objective to forge the strategic partnership by September, ADBL in January struck a deal Dev Associates within a day or two for the special audit of the bank.

Dev Associates, Chartered Accountants has been appointed as an independent member firm of Baker Tilly International with effect from October 2011. As per the deal, Dev Associates and Baker Tilly Nepal are jointly representing as Baker Tilly International member firms in Nepal.

It may also be noted that the bank has come up with impressive quarterly reports this fiscal year.