The bank will be able to distribute the dividend once it is approved by the Nepal Rastra Bank and endorsed by the Bank of Kathmandu’s upcoming general meeting.
Though shareholders were expecting at least 20 percent dividends, experts say that the bank’s loan to Melamchi and the NRB’s rule requiring commercial banks to increase their paid up to Rs 200 crore must have compelled the BoK BoD to take the decision to propose bonus shares.
Currently, the bank paid up capital stands at Rs 168.43 crore. With the inclusion of this bonus share, its paid up capital will come to be Rs 192.02 crore, which is still short of prescribed paid up capital.
The bank had earned a net profit of Rs 61.70 crore in the last fiscal year. The bank had collected a deposit of Rs 27 arba 70 crore 9 lakh and disbursed loans of Rs 23 arba 4 crore 95 lakh.
-sharesansar
