Kamana Sewa Development Bank Announces Dividend, What About Other Development Banks?

Among the national-level development banks, Kamana Sewa Development Bank has become the first to announce dividend distribution for the last fiscal year (2081/82 BS). The bank decided to distribute a total dividend of 15.7895%, which includes 10% bonus shares and 5.7895% cash dividend (including tax). The decision was approved at the bank’s board meeting held on Sunday.

Last year, the bank had distributed 12% dividend, but this year it has increased the rate. Shareholders will receive the dividend once it is approved by Nepal Rastra Bank and endorsed by the bank’s upcoming 19th Annual General Meeting (AGM).

Currently, there are eight national-level development banks in operation. Among them, only Jyoti Development Bank is in loss and unable to distribute dividends. The remaining seven banks, however, have distributable profits and are in a position to announce dividends this year.

• Muktinath Development Bank: Capacity of 20.75% (highest)

• Kamana Sewa Development Bank: 17.30% capacity (already announced 15.78%)

• Shine Resunga Development Bank: 13.96% capacity

• Garima Development Bank: 12.59% capacity

• Sangrila Development Bank: 11.64% capacity

• Mahalaxmi Development Bank: 11.51% capacity

• Lumbini Development Bank: 8.13% capacity

• Jyoti Development Bank: Unable to distribute (negative distributable profit)

In the last fiscal year, the national-level development banks collectively earned Rs. 5.60 billion, an increase of 22.01% compared to the previous year.

• Muktinath Development Bank posted the highest profit of Rs. 1.53 billion.

• In terms of growth rate, Garima Development Bank led with a massive 201.97% increase.

Among the banks with profit growth:

• Kamana Sewa’s profit increased by 9.19%

• Sangrila by 6.51%

• Mahalaxmi by 1.26%

• Shine Resunga by 0.48%

On the other hand:

• Lumbini’s profit declined by 30.13%

• Jyoti’s profit dropped sharply by 92.14%

Muktinath and Kamana Sewa Development Banks have shown the strongest dividend distribution capacity, while other development banks are likely to offer dividends in the 8% to 14% range.