Global IME Bank Maintains Steady Dividend Policy — Proposes 8% Cash Dividend for FY 2081/82

Global IME Bank Limited (GBIME), one of Nepal’s leading commercial banks, has continued its consistent dividend distribution trend by proposing an 8% cash dividend (including tax) for the fiscal year 2081/82. The decision was made during the bank’s 459th board of directors meeting held on Ashwin 25, 2082 (October 11, 2025).

The proposed dividend, based on the bank’s paid-up capital of Rs. 38.11 Arba, amounts to a total payout of approximately Rs. 3.04 Arba. This dividend proposal will be distributed only after approval from the Nepal Rastra Bank (NRB) and subsequent endorsement by the company’s 19th Annual General Meeting (AGM).

At the time of the announcement, GBIME’s share price stood at Rs. 242.90, reflecting steady investor confidence in the bank’s long-term performance and dividend reliability.

Dividend Trend Analysis: A Decade of Consistency

A closer look at GBIME’s dividend history reveals a decade-long pattern of consistent payouts, balancing both bonus and cash dividends to reward shareholders while maintaining strong retained earnings for expansion and compliance with regulatory capital adequacy.

1. Shift Toward Cash Dividend Stability

Over the past three years, GBIME has shifted its dividend strategy from heavy bonus share distributions to a more balanced or cash-focused approach. The 8% cash-only dividend in FY 2081/82 follows last year’s 5.5% bonus and no cash payout, indicating a move toward providing direct liquidity returns to shareholders rather than expanding paid-up capital.

This trend reflects the bank’s mature capital base and its confidence in sustaining shareholder value without aggressive capital growth via bonus shares.

2. Dividend Volatility Moderating

Between FY 2074/75 and FY 2076/77, GBIME offered double-digit combined dividends (ranging from 16% to 25.5%), corresponding with a phase of rapid expansion post-merger consolidation. However, post-COVID years show a more moderate approach, with total dividends stabilizing between 9–13%, aligning with NRB’s dividend policy caps and the bank’s capital adequacy requirements under Basel III.

3. Investor Implications

The 8% cash dividend proposed for FY 2081/82 equates to a dividend yield of around 3.3% at the current market price (Rs. 242.90). For long-term investors, this provides a moderate but stable return, complemented by GBIME’s strong fundamentals, wide branch network, and consistent profitability.

Given its dividend history, GBIME remains one of the most reliable dividend-paying banks in Nepal’s commercial banking sector, appealing to both income-focused and long-term growth investors.

4. Comparative Strength

Compared to many peer banks that have reduced dividend payouts due to tightening NRB guidelines and profit margin pressures, GBIME’s consistent payouts underscore financial resilience, diversified income sources, and prudent management.

Its large capital base of Rs. 38.11 Arba provides a stable platform for dividend continuity even in tightening economic conditions.

Global IME Bank’s 8% cash dividend proposal for FY 2081/82 reaffirms its strong balance sheet, steady earnings, and shareholder-focused dividend policy. With more than a decade of uninterrupted distributions, the bank continues to balance profit retention for growth with attractive returns for investors.

As the proposal awaits NRB and AGM approval, shareholders can anticipate continued stability in returns from one of Nepal’s most trusted banking institutions.