Siddhartha Development can provide stock dividend to its shareholders; No restriction from NRB

ShareSansar, August 5:

It’s after years that Siddhartha Development Bank Limited (SDBL) is in the position to issue dividends to its shareholders.

Siddhartha Development Bank Limited (SDBL)has shown a remarkable improvement in the fourth quarter (Q4) of the last fiscal year 2071/72. The bank has earned net profit of Rs 16 crore by the end of the fourth quarter of the last fiscal year.  The company is in position to provide at least 12 percent stock dividend to its shareholders.  

The bank’s net interest income surged to Rs 32.58 crore in the Q4 of FY 2071/72, from Rs 20.31 crore in the corresponding quarter of the previous fiscal year.

At present Sidhhartha Development Bank’s Capital Adequacy Ratio (CAR) stands at 12.69 % and there is no restriction from NRB to issue any cash or stock dividends.

Earlier NRB had restricted SDBL to issue any dividend as its Capital Adequacy Ratio (CAR) was below 11% in the FY 2070/71.

SDBL non-performing loan has also decline from 7.80 % in the 2070/71 fiscal year to 4.03% in fourth quarter of fiscal year 2071/72.

The paid up capital of the bank remains at Rs 64.50 crore. Its earnings per Share (EPS) stand at Rs 25.10 and net worth per share is at Rs 131.06

Ajay Kumar Mishra, CEO of the bank said, “SDBL has a very sound financial position and in coming days it will establish itself as a strong and successful development bank.”