MBL
Machhapuchhre Bank Announces 8% Dividend for FY 2081/82
At its current price, MBL appears fairly valued compared to sector peers, balancing growth potential with moderate risk. The 8% dividend yield is modest but significant, as it marks a resumption of payouts after years of no dividend distribution, signaling management’s confidence in sustainable earnings. Analysts suggest that MBL could attract both income-seeking investors and long-term holders if it continues to maintain profitability and asset quality.
Jiwan Dahal
1 min read
Kathmandu, Sept 1, 2025 – Machhapuchhre Bank Limited (MBL) has announced an 8 percent dividend for the fiscal year 2081/82, comprising 4 percent bonus shares and 4 percent cash dividend. The proposal will be presented for approval at the upcoming Annual General Meeting (AGM) after obtaining regulatory clearance.
The dividend declaration comes after a strong financial performance. MBL posted a net profit of NPR 2.01 billion, marking a 93 percent growth compared to the previous fiscal year. The surge was supported by improved net interest income, disciplined cost management, and a significant reduction in impairment charges. The bank’s reserves rose, and its net worth per share reached Rs. 163.79, strengthening its capital position.
Technical Analysis
On the Nepal Stock Exchange (NEPSE), MBL shares are trading around Rs. 251.8, with a 52-week range of Rs. 208.6 to Rs. 290. The stock has shown moderate volatility, finding support near Rs. 240 and resistance around Rs. 270. Trading volume has been steady, suggesting stable investor confidence following the dividend declaration. Short-term moving averages indicate a mildly bullish sentiment, while long-term averages suggest consolidation within a fair value zone.
Fundamental Analysis
Key financial indicators underline MBL’s strong fundamentals. The bank reported an EPS of Rs. 17.31, a P/E ratio of 14.5 times, and a Price-to-Book Value (P/BV) of 1.53 times. Its capital adequacy ratio remains above regulatory requirements, while non-performing loans (NPLs) have been managed effectively at around 3.8%. The strong balance sheet and profit growth reflect the bank’s improving operational efficiency and financial resilience.
Written by
Jiwan Dahal