Nepal Investment Bank approved 10% stock dividend & 25% cash, increases its capital base to Rs 4.14 billion

Nepal Investment Bank Limited (NIBL) is increasing its capital base to Rs 4.14 billion, which it says will be the highest among private banks.

An NIBL Annual General Meeting (AGM) on Thursday approved 10 percent stock dividend worth Rs 376.8 million. The bank also approved 25 percent cash dividend worth Rs 942 million to its shareholders from the net profit of fiscal year 2012-13, the bank said in a statement.

Net profit for the fiscal year was at Rs 1.91 billion, up 84.3 percent compared to the previous year. The bank attributed the rise in the profit to recovery of bad loans.

NIBL’s loan loss provision decreased to Rs 28.3 million from the previous year’s Rs 476 million, while its non-performing loans reduced to 1.91 percent from 3.32 percent.

As of fiscal year 2012-13, the bank’s deposits stood at Rs 62.42 billion, up 9.5 percent. It credit disbursement grew 11.2 percent to Rs 47.70 billion. NIBL said its market share in deposit and credit among the commercial banks stood at 6.2 percent and 6.4 percent, respectively.

NIBL has been providing financial services to more than 500,000 customers through 44 branches and 73 ATM counters. The statement said it has been rated ‘A’ grade by the Indian Credit Rating Agency (ICRA) for the past four years due to its strong “creditworthiness and dependability”.

The bank said the “ups and downs” in the liquidity situation in the banking sector has made the management of interest rate challenging. “Increased competition in the banking sector has mounted pressure on profits, while high inflation has increased operating costs.” -  The Kathmandu Post