Dividend History of Nabil Bank

Dividend History of Nabil Bank

Nabil Bank is one of the best commercial banks in Nepal. The Nabil bank is the most profitable and highest income taxpayer bank six times in a row.

The bank that initially started as the Nepal Arab Bank in 1984 is the first joint venture bank. It also is the first private bank of Nepal. The majority of shares of the bank owned by the Dubai government were purchased by Nepal’s only billionaire, Binod Chaudhary.

Nabil Bank now has a wide network with 119 branches, 189 ATMs, and more than 1,500 Nabil Remit agents spread across the country. The bank aims to provide superior service delivery for enhancing value to the customers.

Apart from this, Nabil Bank also highest traded share price amongst the banks and pays a high dividend to the shareholders.

Dividend History of Nabil Bank

Nabil Bank provides impressive returns to its shareholders as cash and bonus shares. It is the top bank when it comes to high dividends paying. The shareholders of the bank not only have high market share price but also gain high returns from the bank every year. Thus, Nabil bank is best for short-term as well as long-term investors.

The following table shows the dividend history of Nabil Bank.

Fiscal Year Cash Dividend Bonus Share Total Dividend
2060/61 65 0 65
2061/62 70 0 70
2062/63 85 0 85
2063/64 100 40 140
2064/65 60 40 100
2065/66 35 50 85
2066/67 30 40 70
2067/68 30 0 30
2068/69 40 20 60
2069/70 40 25 65
2070/71 45 20 65
2071/72 6.84 30 36.84
2072/73 15 30 45
2073/74 18 30 48
2074/75 22 12 34
2075/76 22 12 34
2076/77 1.76 33.5 35.26
2077/78 (proposed) 4.4 33.6 38

From the table, we can analyze that Nabil Bank has been giving out more than 30 % dividends every year. The lowest dividend paid till the date is 30% in the year 2067/68. The highest dividend paid is a whopping 140% paid in 2063/64.

The bank has been giving bonus shares almost every year since 2063/64, except for 2067/68. As a result, the highest bonus share is 50% in 2065/66, whereas the lowest is 12 in 2074/75 and 2073/74. As for cash bonus, the highest cash bonus is 100% in 2063/64, whereas the lowest is 1.76 in 2076/77.

The table shows that the bank paid impressive dividends during the 2060s as compared to the 2070s. There are several reasons behind the decrease in dividends. The bank that pays 140 % a year now distributes 34 to 65 % dividends every year. The main reason may be the direction from Nepal Rastra Bank to pay fewer dividends and retain more for future use and investment.

Dividend of Nabil for 2077/78

The board meeting of Nabil Bank has proposed to give a 38 percent dividend to its shareholders. It aims to distribute 33.6% as bonus shares and 4.4 % as a cash dividend. This is an increase of 3 % from the last year’s dividend.

However, 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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