Muktinath Bikas Bank (MNBBL) Dividend Announcement

Muktinath Bikas Bank Limited (MNBBL) has proposed a dividend of 18.20 percent for its shareholders from the profit of Fiscal Year 2081/82. The proposed dividend includes 13.53 percent bonus shares and 4.67 percent cash dividend, which also covers the tax obligations associated with the bonus distribution. This decision, however, is not final yet. It will only come into effect after approval from the Nepal Rastra Bank (NRB) and endorsement from the bank’s upcoming Annual General Meeting (AGM).

At present, the book close date has not been fixed. Once the bank announces the book close date, only those shareholders who hold shares until that day will be eligible to receive the declared dividend. Currently, the dividend status is categorized as “Proposed”, awaiting the necessary regulatory and shareholder approvals.

In a broader context, Development Bank Limited (DEVBANK), like MNBBL, also declares annual dividends based on its profit after completing the required approval process. Development banks in Nepal usually distribute dividends in the form of a combination of bonus shares and cash dividends. Bonus shares are generally preferred to strengthen the bank’s paid-up capital, while cash dividends are distributed mainly to cover tax liabilities and provide some immediate returns to shareholders.

This approach, seen in MNBBL’s proposed structure of 13.53 percent bonus and 4.67 percent cash, reflects a common practice among development banks. Shareholders of both MNBBL and DEVBANK can expect such a mix, though the exact figures for DEVBANK will be available only after its official dividend announcement.