NMB Bank announce 20% bonus shares, 1% cash dividend for tax purpose

NMB Bank Ltd has announced 20 percent bonus shares and 1 percent cash dividend for its shareholders.

A senior management executive confirmed that the board of directors meeting of the NMB Bank held on Tuesday decided to recommend 20 percent bonus shares to its shareholders and 1 percent cash dividend for the tax purposes.

With the announcement, NMB Bank has joined the list of top commercial banks of the country to offer the high dividend to its shareholders. The decision of the BoD is, however, subject to the approval of its upcoming annual general meeting and the NRB.

According to the unaudited financial report of the bank, its net profit has risen to Rs 43.37 crore in last fiscal year 2070/71, up from Rs 36.66 crore at the end of the previous fiscal year 2069/70.

The bank had distributed 15 percent cash dividend to its shareholders in the previous year.

After the adjustment of 20 percent bonus shares, the paid-up capital of the bank will surge to Rs 2.4 arba from Rs 2 arba.

source: sharesansar

Janaki Finance pledges 70% bonus share plus cash dividend for tax purpose

Janaki Finance Company Limited has pledged 70 percent bonus share plus cash dividend for tax purposes from the massive net profit it posted in the last fiscal year.

A meeting of Board of Directors took the decision to this effect yesterday, a highly placed source at the finance company based in Janakpurdham told ShareSansar today.

Talking to ShareSansar earlier this month, Ram Nritya Shama, the Chief Executive Officer of the finance company had said that they were planning to distribute around 65 percent bonus share as well as cash dividend also because they have a reserve of dividend that the central bank did not allow them to distribute in the previous fiscal year 2069/70.

CEO Sharma also informed that they are also planning to hold the AGM toward Mangshir end or Poush.

CEO Sharma, however, refuted rumors in the market that Janaki Finance will pledge around 100 percent bonus share this time also because its paid-up capital stands at just Rs 14.62 crore.

It may be noted that the central bank had blocked dividend proposed by the finance company for the previous fiscal year, citing high non-performing loan.

Janaki Finance Company Limited posted 125 percent increase in the net profit in the quarterly report published today for the fiscal year 2070/71.

In comparison to the corresponding quarter of last fiscal year the net profit increased from Rs 3.97 crore to Rs 8.95 crore in the fourth quarter of the fiscal year 2070/71.

The finance company accumulated deposits of Rs 1.20 arba and the loan flow was Rs 91.17 crore in the fourth quarter. As compared to the corresponding quarter of last fiscal year the deposit and loan was Rs 1.01 arba and Rs 70.50 crore respectively.

Write back of provision for possible loss has also increased to Rs 8.01 crore up from Rs 2.36 crore in the fourth quarter.

The rise in the net profit is also due to the increase in the core business of the finance company as the net interest income has surged to Rs 10.71 crore from Rs 7.71 crore in comparison to the corresponding quarter.

The NPL of the finance company also dropped to 4.89 percent by the end of the fourth quarter, down from 11.82 percent at the end of the previous fiscal year 2069/70.

Likewise the EPS of the finance is Rs 61.20, per share net worth is Rs 272.01 and the P/E ratio is 8.17 times.

source: sharesansar

Kumari Bank pledges 33% bonus share, 1.74% cash; Laxmi offers 20% bonus, 1.05% cash

Kumari Bank Limited has proposed impressive 33 percent bonus share and 1.74 percent cash dividend to cover for the tax to its shareholders from the profit it posted in the last fiscal year 2070/71.

A meeting of its Board of Directors held today decided to propose this dividend.

Though Kumari had posted a modest profit growth of 17 percent by the fourth quarter of last fiscal year 2070/71, the dividend has made its shareholders happy.

The price of the scrip has been sharply rising over the recent days, and today itself it is having one of the top turnovers in the market.

Last year, it had offered just 14 percent bonus share.

Meanwhile, Laxmi Bank Limited has also announced 20 percent bonus share and 1.05 percent cash dividend for tax purpose.

With this only Nepal Credit and Commerce Bank Limited is left to declare its dividend for the last fiscal year among the seven commercial banks that are yet to meet the paid-up capital of Rs 2 arba as required by the central bank.

The commercial banks yet to meet the paid-up requirement are Everest Bank Limited, Kumari Bank Limited, Laxmi Bank Limited, Bank of Kathmandu Limited, Lumbini Bank Limited, Nepal Credit and Commerce Bank Limited and Siddhartha Bank Limited.

Only yesterday Siddhartha Bank had pledged 12 percent bonus share and 11.16 percent cash dividend. On Sunday Bank of Kathmandu had declared 10.42 percent bonus share to its shareholders. Everest Bank had 12 percent bonus and 50 percent cash while Lumbini had pledged 5 percent bonus share and 6 percent cash a few days ago.

NCC Bank is scheduled to offer an impressive dividend shortly.

source: sharesansar

Chhimek Laghubitta declares 35% bonus share and 10 % cash dividend

Chhimek Laghubitta Bikas Bank Ltd has proposed 35 percent bonus share and 10 percent cash dividend to its share holders for the last fiscal year 2070/71.

The Board of Directors of the microfinance institution has just taken the decision to this effect.

However, the pledged dividend is subject to the approval of Nepal Rastra Bank and its upcoming Annual General Meeting.

Back in July, Chhimek, which is among the leading MFIs, had decided to pledge 2:1 right share to its shareholders.

This pledge is also subject to the approval of NRB and the company’s upcoming AGM.

Established with an objective to transform socio-economic lives of the poor and underprivileged women through micro-finance services, Chhimek Laghubitta has 57 branches in 31 districts of the country.

source: sharesansar

Citizens Bank Intl announces 18.95% dividend, includes 13% bonus shares

Citizens Bank International Ltd has announced an attractive 18.95 percent dividend to its shareholders.

The board of directors (BoD) meeting held recently proposed to distribute 13 percent bonus shares and 5.95 percent of cash dividend to its share holders.

The decision is, however, subject to the approval from the bank’s upcoming annual general meeting and the Nepal Rastra Bank (NRB).

According to the unaudited financial statement of the bank published recently, the bank earned a net profit of Rs 56.12 crore in the last fiscal year 2070/71, up from Rs 41.32 crore in the previous fiscal year 2069/70.

The bank had offered 15 percent cash dividend last year.

source: sharesansar

Nabil Bank announces 45% cash and 20% bonus shares

Nabil Bank Ltd has announced 65 percent dividend to its shareholders from the net profit that it has earned in last fiscal year 2070/71.

The top profit earner among the private commercial bank has said that it will distribute 45 percent cash dividend and 20 percent bonus shares to its shareholders.

The dividend proposed by the bank’s 393rd board of directors (BoD) meeting of the leading commercial bank of the country held on August 18 is, however, subject to the approval of Nepal Rastra Bank and the upcoming annual general meeting of Nabil Bank.

According to the unaudited financial results of the bank, its net profit has jumped to Rs 2.32 arba in last fiscal year, up from Rs 2.23 arba in the corresponding period of the previous fiscal year 2069/70.

Nabil Bank’s annualized EPS is at Rs 83.68, while its P/E ratio stands at 30.29 times and its net worth per share at Rs 296.

It had distributed 65 percent dividend – 40 percent cash and 25 percent bonus shares—to the shareholders in the last fiscal year also.

source: sharesansar

Banks under pressure to float bonus shares to increase capital adequacy ratio

With the capital adequacy ratio (CAR) of the commercial banks taking a dive in last fiscal year 2070/71, they are bound to distribute the bonus shares to the shareholders instead of prioritizing the cash return as the dividends to their shareholders.

The average CAR of the commercial banks has come down to 11.32 percent by the end of the last fiscal year 2070/71 from 12.22 percent in the previous fiscal year 2069/70. The CAR level of the banks that they have maintained in the last year is slightly above the central regulatory bank’s prescribed level.

According to NRB requirement, commercial banks have to maintain at least 10 percent of CAR while they should have additional one percent of buffer capital.

CAR is a measure of a bank’s financial strength expressed by the ratio of its capital (net worth and subordinated debt) to its risk-weighted credit exposure (loans). A bank with a higher capital adequacy is considered safer because if its loans go bad, it can make up for it from its net worth.

Though the liquidity surplus is gripping the banking and financial institutions, the relatively lower level of the CAR will inhibit their capacity to finance big projects or extend a higher amount of loans.
Nepal Rastra Bank (NRB) has been urging the commercial banks to maintain enough capital base to increase their capacity to lending.

“We have been expecting around 18 percent deposit growth in the upcoming fiscal year which means around Rs 250 arba will come as deposit in the banking system in the coming year which means more fund will be available with you for the investment. So far the capital adequacy ratio issue is related, you have to be responsible for this. You are just hitting around the bush. You rarely talk about doing things that come as part of your liabilities,” Nepal Rastra Bank governor Dr Yuba Raj Khatiwada told a group of bank executives gathered at recent interaction on the Monetary Policy which was jointly by IBN Media and Research and Nepal Bankers Association (NBA).

“The current problem is related to the increment of the capital. Central Bank is clear in this aspect. The banks should maintain the enough capital cushion. Either you do it by float bonus shares, rights shares or debentures, it’s up to you. If you maintain enough capital, your credit flow capacity will not be hit,” NRB Governor Khatiwada added.

According to the financial results of the 30 commercial banks, four commercial banks have below the prescribed CAR. Among them, two are government owned banks while two other are private lenders. The fall in the CAR will put the banks under the pressure to float rights shares, debentures or bonus shares to increase such ratio.

While none of the banks have sought the approval from the capital market regulator Securities Board of Nepal (Sebon) to issue right shares and follow on public offer (FPO), there are chances that the banks struggling to increase the CAR will prioritize the bonus shares distribution in the current fiscal year.

source: sharesansar

Shikhar Insurance bonus share listed; bonus of Triveni, and bonus and rights of Kabeli also listed

Altogether 352,720 units of bonus shares and 875,000 units of right shares of Shikhar Insurance Co. Ltd. has been listed at Nepse for trading today.

Similarly, 471,947 units of bonus shares of Triveni Bikas Bank Ltd as well as 44,000 units of bonus shares and 80,000 units of right shares of Kabeli Bikas Bank Ltd has also been Listed.

source: sharesansar

Reminder: Last chance to get hold of Arun Valley’s 10% bonus share

Today is the last day to clinch 10 percent bonus share pledged by Arun Valley Hydropower Development Company Limited (AHPC) for the net profit it posted in the last fiscal year 2070/71.
On August 4, a meeting of the AHPC Board of Directors had decided to pledge the bonus share plus cash dividend to cover the taxes and had announced the book closure on August 22 for the AGM, according to Arjun Neupane, the company secretary.
Though the dividend pledged by AHPC is lesser than 15 percent bonus share and 0.75 percent cash it had pledged for the previous  fiscal year, it may also be noted that it had floated 1:1 right share a few months back.
According to its unaudited fourth quarter report, it has registered a modest net profit rise of 10 percent in the fourth quarter of the last fiscal year 2070/71.
According to the unaudited financial report published today by the company for the fourth quarter, its net profit after income tax (profit for appropriation) has risen to Rs 5.95crore up from Rs 5.41crore in the fourth quarter of the previous fiscal year 2069/70.
AHPC made an income of Rs 8.77 crore, mainly from selling electricity, by the end of the fourth quarter, up from Rs 8.46 crore in the corresponding quarter — a rise of Rs 31 lakh over the past three quarters.
Its EPS (annualized) stands at Rs 8.49, its net worth per share at Rs 132.27 and P/E ratio stands at 62.55 times.

soruce: sharesansar

AHPC pledges 10% bonus share; Q4 within a week, around Rs 6 net profit expected

Arun Valley Hydropower Development Company Limited (AHPC) has decided to pledge 10 percent bonus share and 0.5 percent cash  dividend to cover the taxes on the bonus share for the net profit it posted in the last fiscal year 2070/71.
A meeting of the AHPC Board of Directors took the decision to this effect today, according to Arjun Neupane, the company secretary  of AHPC.
A highly placed source at AHPC also told ShareSansar that they are planning to publish the financial report for the fourth quarter in a  week’s time, and that the net profit is expected to come to the tune of Rs 6 crore.
Though the dividend pledged by AHPC is lesser than 15 percent bonus share and 0.75 percent cash it had pledged for the previous  fiscal year, it may also be noted that it had floated 1:1 right share a few months back.

source: sharesansar