“The management is expected to make some important announcement regarding the proposed dividend and the upcoming AGM during the bank’s anniversary on January 21,” informed a highly placed source.
The shareholders, who were dejected by the bank’s failure to deliver the pledged dividend for the previous fiscal year 2068/69, are very upbeat about dividend this time around as the bank is fairing much better.
“The bank officials themselves want to pledge around 35 percent dividend this time around,” the source said. “Even if the central bank demands some provisioning, investors can expect anything between 25 to 35 percent dividend.”
On the record, however, the bank officials only said that they will submit their final balance sheet to the central bank by the end of Poush or January 12, and that they hope to announce something for the shareholders on the day of anniversary.
ADBL’s AGM held in July last year failed to deliver 5.26 percent cash dividend for the shareholders and 6 percent for preference shareholders announced earlier by the bank from the net profit it had posted in the previous fiscal year.
Nepal Rastra Bank had refused to grant permission for the dividend mainly due to the bank’s failure to convert Rs 16.25 crore issued capital to paid-up capital.
This despite the fact that ADBL had posted an impressive net profit of Rs.225.99 crore in the fiscal year 2068/69.
All in all, shareholders are expecting better dividend for the current fiscal year as ADBL has been much better this year.
Moreover, the government has already decided to divest its 30% stake in the bank and bring in foreign strategic partners to improve the management and performance of the bank.
While the government is currently evaluating the price of its shares to be sold, the bank management is actively engaged in the process to attract foreign partners through global tender, according to sources and share investors, privy of the development.
The bank reported a net profit rise of 6.37 percent, publicizing its unaudited first quarter report in November.
It has posted a net profit of Rs 23.70 crore in the first quarter compared to Rs 22.28 crore in the corresponding quarter last year.
Though the bank’s net interest income has increased from Rs 93.82 crore in the corresponding quarter to Rs 1.05 arba in the first quarter, its operational profit has dipped Rs 9.97 crore , down from Rs 11.39 crore.
The bank has set aside Rs 48.04 crore as a provision for possible losses.
However, its non performing loan has marginally decreased from 5.88 percent to 5.57 percent.
The EPS (annualized, ordinary shares only) of the state-run bank stands at Rs 17.56 and net worth per share at Rs 286. -SSN
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