Dividend History of NIC Asia Bank Limited

Dividend history of nic asia bank

Dividend History of NIC Asia Bank Limited

NIC Asia Bank is one of the largest private commercial banks in Nepal. It is the first commercial bank in Nepal to be capitalized at NPR 500 million.

NIC Asia Bank is also the first commercial bank to be ISO 9001:2000 certified for Quality Management systems in Nepal. Furthermore, NIC Bank became the 1st bank in Nepal to be provided a line of credit by the International Finance Corporation (IFC).

NIC Asia Bank was initially Nepal Industrial and Commercial Bank which was founded on 21 July 1998. Later on 30th June 2013, the bank merged with Bank of Asia Nepal and thus, was named NIC Asia Bank.

It was a historic merger of two successful commercial banks. The same year, after the merger, the bank was honored Bank of the Year 2013 Nepal. This was the second time as NIC was awarded Bank of the year in 2007.

The NIC Asia Bank has 356 branches, 70 extension counters 81 branchless banking and 472 ATMs across Nepal. The bank aims to be a Bank of 1st Choice for all the stakeholders.

Apart from this, NIC Asia is among the highest traded share price amongst the banks and pays a consistent dividend to the shareholders.

Dividend History of NIC Asia Bank

NIC Asia has provided consistent dividends to its shareholders in terms of both cash dividends and bonus shares. The following table shows the dividend history of NIC Asia Bank.

Fiscal Year Cash Dividend Bonus Share Total Dividend
2061/62 10 20 30
2062/63 0.53 10 10.53
2063/64 1.05 20 21.05
2064/65 1.05 20 21.05
2065/66 0.79 15 15.79
2066/67 26.32 0 26.32
2067/68 20 0 20
2068/69 25 0 25
2069/70 20 0 20
2070/71 15 15 30
2071/72 2.05 39 41.05
2072/73 1.37 26 27.37
2073/74 1.05 20 21.05
2074/75 0.53 10 10.53
2075/76 11.05 10 21.05
2076/77 1 19 20
2077/78 (Proposed) 0.79 15 15.79

From the table, we can analyze that NIC Asia Bank has been giving out consistent dividends every year. The lowest dividend paid till the date is 10.53% in the year 2062/63 and 2074/75. The highest dividend paid is  41.05% paid in 2071/72.

The bank has been giving bonus shares almost every year since 2061/62, except fiscal years 2066/67 to 2069/70. As a result, the highest bonus share is 39% in 2071/72, whereas the lowest is 10 %.  As for cash bonuses, NIC Asia gives low cash bonuses with the highest cash bonus being 26.32% in 2066/67 and the lowest being  0.79% in 2077/78.

The table also shows the dividend paid by NIC Asia before being merged with the Bank of Asia Nepal in 2013 (2070/71). From the table, we can derive that the bank performed well after the merger giving out its highest dividend the year later.

Also, The bank pays more bonus shares as dividends than the cash bonus.

Dividend of NIC Asia for 2077/78

The 511th board meeting of NIC Asia Bank has proposed to give a 15.7894 percent dividend to its shareholders. It aims to distribute 15% as bonus shares worth Rs 1.73 Arba and 0.78947% worth Rs 9.12 crore as a cash dividend. This is a decrease of 5 % 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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