Historical Dividend of Siddhartha Bank (SBL) – From 3% to 39% Distribution Record

Over the past fifteen years, Siddhartha Bank Limited (SBL) has maintained a strong reputation for consistent dividend payouts, reflecting both its profitability and responsible financial management. The bank’s dividend history—from a modest 3% bonus in FY 2068/69 to a record 39% bonus in FY 2072/73—highlights its dynamic growth phases and ability to adapt to changing market and regulatory environments.

In its early years (FY 2068–2071), SBL prioritized balanced returns with moderate bonus and cash combinations. In FY 2068/69, it distributed 3% bonus and 12.79% cash dividends, totaling 15.79%, while in the following years, payouts increased to around 22–23% through both bonus and cash components. This period marked the bank’s steady expansion and confidence-building phase among investors.

The growth era (FY 2071–2075) represented Siddhartha Bank’s most aggressive capital expansion. During FY 2072/73, the bank announced a record-high 39% bonus share—its largest distribution ever. This all-stock dividend (no cash component) aimed to strengthen the bank’s paid-up capital and meet Nepal Rastra Bank’s capital adequacy norms. The decision symbolized a bold growth strategy, reinforcing investor confidence while preserving liquidity.

In the following years (FY 2074–2076), the bank adopted a balanced approach. The FY 2075/76 dividend—10% bonus and 15.26% cash (total 25.26%)—stood out as one of the most profitable years in SBL’s history, showcasing both capital strength and cash surplus. This phase reflected the bank’s maturity and its ability to generate sustainable earnings from diversified operations.

However, from FY 2077/78 onward, SBL’s dividend structure gradually became more conservative. It distributed 14.25% bonus and 0.75% cash (15% total) in FY 2077/78, followed by 12.5% bonus and 0.66% cash (13.16% total)in FY 2078/79. As regulatory pressures tightened and liquidity challenges emerged, the bank switched to cash-only dividends of 4.21% in FY 2079/80 and 4% in FY 2080/81, reflecting a focus on maintaining financial stability and capital adequacy.

In the latest fiscal year, FY 2081/82, Siddhartha Bank resumed a mixed distribution, declaring 5% bonus and 5.53% cash (total 10.53%). This marks a gradual return to balance after two years of low payouts, suggesting improved profitability, confidence, and liquidity.