Bank of Kathmandu Bok AGM approves 14% bonus shares & 0.74% cash dividend

The 19th AGM of the Bank of Kathmandu (BoK) has endorsed 14 percent bonus shares and 0.74 percent cash dividend to its shareholders from the net profit it earned in last fiscal year 2069/70.

The BoK had distributed 21.32 percent cash dividend and 5 percent bonus share to the shareholders from the profit it posted in the previous fiscal year 2068/69.

In the last fiscal year, the commercial bank had posted a net profit of Rs 61.71 crore in the last fiscal year and had mobilized Rs27.70 abra in deposit and Rs 23.50 arba in loan, the bank officials announced at the AGM held in the capital yesterday.

Addressing the AGM, Chairman of the bank Satya Narayan Shrestha said that the bank managed this achievement in spite of the unfavorable economic condition and volatile liquidity.

Manandhar also mentioned that the Bank is determined to continuously improve the risk management and operational procedure, revision of internal policies & guidelines and reiterated the bank’s ability to fulfill the commitment of the bank in every sector in a sustainable manner.

During the same year, the bank opened five new branches and also installed two ATMs in new locations. With these additions the bank's total number of branches and ATM has reached 50 and 58 respectively, the bank also provides service through 8 extension counters at various locations.

Last month Nepal Rastra Bank had approved of the dividend proposed by the commercial bank for the last fiscal year to much respite for the shareholders who were worried about the bank’s involvement in the Melamchi row.

The BOK and Himalayan Bank (HBL) have moved the court to withhold making payments to Melamchi Water Supply Development Board (MWSDB) following a row between the parties.

This had worried the shareholders as it might affect the distribution of dividends offered by the banksas they might have to provision the due amount.

The BoK, which had issued advance payment guarantee, risk losing US $6.62 million to pay as counter guarantee amount to MWSDB after their client — China Railway 15 Bureau Group Corporation — failed to complete the construction of the tunnel.

Himalayan Bank stands to lose $6.2 million for guarantee made for the contractor’s performance bond.

-sharesansar