By Sandeep Chaudhary
Siddhartha Bank (SBL) Dividend Trend – Year-by-Year Distribution from 2068 to 2082
Over the last fifteen fiscal years, Siddhartha Bank Limited (SBL) has established itself as one of Nepal’s most consistent dividend-paying commercial banks. From FY 2068/69 to FY 2081/82, the bank has maintained a steady pattern of both bonus shares and cash dividends, balancing shareholder value with long-term capital growth. The distribution history clearly illustrates SBL’s evolution—from rapid expansion and generous payouts to a more cautious, sustainable approach in recent years.
In the early years (2068–2071), the bank focused on both expansion and shareholder return. In FY 2068/69, SBL distributed 3% bonus and 12.79% cash dividend, totaling 15.79%, while in FY 2069/70 and 2070/71, it provided double-digit returns combining both bonus and cash, reflecting strong profitability and confidence. The trend peaked in FY 2072/73, when SBL declared a massive 39% bonus share — one of the highest in its corporate history — showcasing an aggressive growth phase aimed at increasing its paid-up capital.
From 2073/74 to 2076/77, the bank shifted toward balance. During these years, it maintained moderate total dividends (ranging from 13% to 25%) with both cash and bonus components. The FY 2075/76 period stands out for its 10% bonus and 15.26% cash dividend, a total of 25.26%, highlighting one of the bank’s most profitable years. However, as regulatory conditions tightened and liquidity pressures increased, SBL began adopting a more conservative stance.
Between 2077/78 and 2079/80, dividend rates declined gradually. The bank prioritized stability and capital adequacy, offering bonus-heavy or cash-only payouts. For instance, in FY 2078/79, it offered 12.5% bonus and 0.66% cash, while in FY 2079/80 and 2080/81, it distributed only 4.21% and 4% cash, respectively—marking a cautious phase in response to changing economic conditions.
In the latest FY 2081/82, Siddhartha Bank once again adopted a balanced approach by announcing 5% bonus shares and 5.53% cash dividends, totaling 10.53%. This signals renewed financial strength and management confidence after a few conservative years. The bank’s consistency, despite fluctuations in Nepal’s banking environment, demonstrates strong governance and sustainable dividend policy.
