Dividend History of Mega Bank

Dividend History of Mega Bank

Mega Bank is one of the premier commercial banks in Nepal. The bank aims in creating a mutually beneficial relationship with all its stakeholders. Mega Bank commenced its business from 7th Shrawan 2067 with a vision of being a banker for every Nepali, from Halo to Hydro (Plough to Power).

Today, the bank has an Authorized Capital of NPR 15 Billion, Issued Capital of NPR 14.65 Billion, and Paid-Up Capital of NPR 14.6 5 Billion.

In 2016, Pashchimanchal Development Bank Limited (B-class financial institution) merged with Mega Bank Nepal Limited. Similarly, Mega merged with Tourism Development Bank Limited in 2018. Also, the bank acquired Gandaki Bikash Bank Limited on 5th July 2020.

As of 2021, Mega Bank has 202 branches, 24 extension counters, and 139 ATMs throughout the country. Also, there are 57 Branchless Banking (BLB) outlets and 3,200+ Mega Remit agents.

Dividend History of Mega Bank

Mega Bank provides consistent returns to its shareholders as cash and bonus shares. The following table shows the dividend history of Mega Bank.

Fiscal Year Cash Dividend Bonus Share Total Dividend
2070/71 0.63 12 12.63
2071/72 0.53 10 10.53
2072/73 0.7 13.25 13.95
2073/74 0 10.75 10.75
2074/75 6.85 1 7.85
2075/76 11.75 0 11.75
2076/77 3.05 10 13.05
2077/78 (proposed) 2.07 10 12.07

From the table, we can analyze that Megal Bank has been giving 11 % dividends on average every year. The lowest dividend paid till the date is 7.85% in the year 2074/75. The highest dividend paid is a whopping 13.95% paid in 2072/73.

The bank has given bonus shares almost every year except for 2075/76. As a result, the highest bonus share is 13.25% in 2072/73, whereas the lowest is 1 in 2074/75. As for cash bonus, the highest cash bonus is 11.75% in 2075/76, whereas the lowest is 0.53 in 2071/72.

The bank has been paying average but consistent dividends each year. The bank gives more bonus shares than cash dividends.

Dividend of Mega Bank for 2077/78

The board meeting of Mega Bank has proposed to give a 12.07 percent dividend to its shareholders. It aims to distribute 10% as bonus shares and 2.07 % as a cash dividend. This is a decrease of 0.98 % from the last year’s dividend.

As of Ashad end 2078, Mega Bank has paid-up capital of 14.65 Arba. The bonus shares amount to 1.46 Arba whereas the cash dividend amounts to 30.33 crores.

The proposed dividend is subject to approval by the Nepal Rastra Bank and endorsement by the company’s upcoming Annual General Meeting (AGM).

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