Though most of the banks and financial institutions posted an average
profit increment of around 40 percent in the last fiscal year, they
could not offering dividends in line with their net earnings.
BFIs were compelled to restrict the dividends after the Nepal Rastra Bank tightened the provision on dividend distribution to strengthen the financial health of these institutions.
The short-term investors are being affected the most, according to share analysts.
After the central bank restrained BFIs from giving dividends in the ratio of their net profit, they have forced to reserve the remaining money, which in turn has made their financial condition better.
A lot of investors had invested in the shares expecting dividends after the central bank had directed all of commercial banks to soar up their paid-up capital up to Rs 2 arba by the end of the current fiscal year.
The investors are now at loss after the NRB reviewed the provision, and told the BFIs that they can do so by the end of next fiscal year if they propose a plan for the same by the end of the current fiscal year.
But the central bank officials as well as stock brokers and analysts say that the investors are also going to benefit in the long run due to the though they have to bear with low dividend at this point.
-sharesansar
BFIs were compelled to restrict the dividends after the Nepal Rastra Bank tightened the provision on dividend distribution to strengthen the financial health of these institutions.
The short-term investors are being affected the most, according to share analysts.
After the central bank restrained BFIs from giving dividends in the ratio of their net profit, they have forced to reserve the remaining money, which in turn has made their financial condition better.
A lot of investors had invested in the shares expecting dividends after the central bank had directed all of commercial banks to soar up their paid-up capital up to Rs 2 arba by the end of the current fiscal year.
The investors are now at loss after the NRB reviewed the provision, and told the BFIs that they can do so by the end of next fiscal year if they propose a plan for the same by the end of the current fiscal year.
But the central bank officials as well as stock brokers and analysts say that the investors are also going to benefit in the long run due to the though they have to bear with low dividend at this point.
-sharesansar
