KATHMANDU: The Ministry of Finance has disagreed with the decision to distribute dividend of Nepal Bank Limited for it’s shareholders.
Nepal Bank has decided to distribute 16 percent dividend on the basis of distributable profit of FY 2076/77 BS. The bank had decided to distribute 12 percent bonus shares and 4 percent cash dividend. It has been decided to pay dividend from the accumulated profit before the last fiscal year.
The distribution of dividends by other financial institutions, including commercial banks have to be decided by the Board of Directors before obtaining permission from Nepal Rastra Bank (NRB). Banks will pay dividends to the shareholders only after it is passed by the general assembly even after the permission of the NRB.
As it is a semi government bank, consent has to be obtained from the Ministry of Finance also to distribute dividends. The file has been blocked MoF. An official at the finance ministry said the ministry had stopped because the bank had not complied with the suggestions put forwarded by the Ministry.
However, the Ministry had not disclosed it’s modality.