Muktinath Bikas Bank’s 19th Annual General Meeting (AGM) marked a strategic milestone as shareholders approved a substantial 18.20% dividend and granted the Board of Directors the authority to initiate the process of upgrading the bank to a commercial bank, in line with Nepal Rastra Bank’s (NRB) capital increment guidelines.
Key Decisions: Dividend and Capital Expansion
The AGM approved a total dividend of 18.20% for fiscal year 2080/81, structured to provide immediate returns and capital growth:
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Bonus Shares: 13.53% distributed as bonus shares to strengthen long-term capital.
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Cash Dividend: 4.67% distributed as cash to cover tax liabilities associated with bonus shares.
Following the bonus share issuance, the bank’s paid-up capital will rise to NPR 9.03 billion, providing a solid foundation for the planned upgrade to a commercial bank.
Mandate for Commercial Bank Status
Shareholders also approved amendments to the bank’s Articles of Association, formally authorizing the Board to initiate the commercial bank upgrade process, contingent on full compliance with NRB’s capital, operational, and regulatory requirements. Achieving commercial bank status would allow Muktinath Bikas Bank to operate nationwide without regional restrictions, expand lending capacity, and gain better access to international financial markets.
Leadership and Shareholder Engagement
The AGM was chaired by Khima Prakash Malla, with a welcome address by Board Member Bharat Prasad Lamsal. CEO Pradyumna Pokharel presented a detailed review of the bank’s performance in FY 2081/82 and outlined future strategies. A dedicated Q&A session allowed shareholders to raise concerns and suggestions, which were addressed comprehensively by the Chairman and CEO.
Other approvals included the appointment of auditors for FY 2082/83 and endorsement of several essential corporate proposals.
The 19th AGM consolidates Muktinath Bikas Bank’s position as a high-performing development bank while securing shareholder support for its strategic upgrade, paving the way for long-term growth and enhanced investor value.
