RSDC Laghubitta (RSDC) Dividend Update: 8% Cash Only, No Bonus for Shareholders

RSDC Laghubitta Bittiya Sanstha Limited (RSDC) has announced an 8% cash dividend for its shareholders for the fiscal year 2081/82, with no bonus shares proposed this time. The decision, approved by the board of directors, reflects the company’s careful financial management and focus on maintaining liquidity stability amid changing regulatory and market conditions.

This year’s proposal means that shareholders will receive NPR 8 per share (based on a face value of NPR 100) directly in cash once approved by Nepal Rastra Bank (NRB) and endorsed in the company’s upcoming Annual General Meeting (AGM). RSDC’s approach this year highlights a shift from bonus-heavy distributions toward pure cash returns, giving investors immediate liquidity instead of additional share issuance.

Looking back, RSDC has maintained a consistent history of dividends but with varying structures. In FY 2080/81, the company distributed 9.5% bonus shares and 0.5% cash, totaling 10%, while in FY 2079/80, it had announced 8.6% bonus and 0.45% cash, totaling 9.05%. Earlier years also featured mixed payouts, such as 11% total in FY 2078/79 and 12.63% in FY 2076/77. The current 8% cash-only dividend, though slightly lower in percentage, is more liquid and immediately beneficial to shareholders compared to the small cash fractions in previous years.

The company’s move aligns with a growing trend among microfinance institutions that are focusing on cash dividends to strengthen their liquidity positions, comply with stricter NRB directives, and ensure better returns for investors in uncertain times. The absence of bonus shares may slightly reduce share capital growth, but it enhances short-term investor satisfaction and signals stability in operations.