Will NRB endorse 6.84 % Cash Dividend of NABIL bank ?

Nabil Bank Limited (NABIL) has decided to distribute 30 percent bonus share and 6.842 percent cash dividend for to its shareholders from the net profit it earned in the last fiscal year 2071/72. The decision is subjected to approval from Nepal Rastra Bank (NRB) and the Bank’s upcoming Annual General Meeting (AGM). Recently, the NRB directed Nepal Investment Bank Limited (NIBL) to convert its proposed 15 % cash dividend to bonus.  According to the officials at NIBL, the NIBL had proposed 18 % bonus share and 15 % cash dividend on its proposal to the NRB. The NRB directed NIBL to converts its 15% cash dividend to bonus share. Thus, the current bonus share stands at 33 % instead of 18 % bonus and 15% cash dividend. Madhav Regmi, Company Secretary of Nabil Bank Ltd, said " the bank is in financially sound position in regards to meeting up the paid up capital requirements set by the NRB. We want our investors to have some cash on hands along with the bonus share being offered. However, if NRB were to give other direction on our dividend distribution plan, we would have to follow that direction." Now, it is up  to the NRB to decide on the dividends handed out by the Nabil Bank ltd. Looking at the precedent set by the NRB on the dividend plan of  NIBL, it might be uphill  task for Nabil to gets its cash dividend approved from the NRB. Today the ordinary shares of Nabil bank (NABIL) fell by Rs 130 to close at Rs 2440. Similarly, promoter shares of NABIL (NABILP) shed Rs 88 to close at Rs. 1802. The NABIL and NABILP secured third and fifth position respectively on the top losers list made by NEPSE. Shares worth of Rs 3.72 crore of NABILP and Rs 2.17 crore of NABIL were traded. The shares of NABILP alone account for the 10% of the turnover of NEPSE ! This  shows the highly dissatisfaction of the investors on the dividend announced by the Nabil bank.