Banks vie to distribute dividends to shareholders

It seems that the banks are competing to give dividends to their shareholders.
The Board of Directors (BoD) meeting of NIC Bank yesterday decided to recommend 15 per cent bonus shares and 0.79 per cent cash dividend from the profits of the fiscal year 2008-09. However, the decision is subject to approval of Nepal Rastra Bank and NIC's annual general meeting (AGM).
Similarly, the 128th BoD meeting of Siddhartha Bank Ltd (SBL) today also proposed 10 per cent cash dividend.
Bank of Kathmandu's (BoK) 359th board meeting today decided to propose 40 per cent bonus shares and 7.3684 per cent cash dividend to its shareholders from its profit of the last fiscal year. The bank made a net profit of Rs 461.73 million in the fiscal year 2008-09 -- a growth of 27.73 percent compared to the preceding year.
According to BoK, it has been able to increase its deposits by 14.21 per cent and loans and advances by 17.24 per cent respectively compared to a year ago. It has also reduced its Non Performing Loan (NPL) to 1.27 per cent from 1.86 per cent.
The 26th commercial bank -- Kist Bank -- has also proposed 3.5 per cent cash dividends to its share holders that is subject to the approval of the annual general meeting and the central bank's approval.
Nepal Investment Bank Ltd has distributed 20 per cent cash dividends whereas Nabil Bank is distributing 30 per cent cash dividend and 50 per cent bonus shares. Similarly, Standard Chartard Bank Nepal has announced 50 per cent cash dividend and 50 per cent bonus shares. These banks are considered blue chip shares in the domestic market as the secondary market trading is dominated by them.
The commercial banks sub-group today shed 7.6 points to 563.63 points to pull Nepse down -- the fourth consecutive day this week -- today by 5.4 points to close the market at 585.04 points. Standard Chartered Bank Nepal lost Rs 51 per unit share, Himalayan Bank lost Rs 50 per unit, Citizens' Bank International lost Rs 48 per unit, Everest Bank lost Rs 36 per unit and Nabil Bank lost Rs 31 per unit to drag Nepse down.
Out of the total 26 commercial banks in the country, 23 commercial banks are listed under the bank sub-group and play a key role in the secondary market. Out of Nepal bank Ltd has been delisted and Rastriya Banijya Bank is 100 per cent government holding, the third Agriculture Development Bank is planning to float 96,000,00-unit shares to public by the end of this Kartik.