By our business reporter
The 30th annual general meeting (AGM) of Nepal Investment Bank Ltd (NIBL) held on Tuesday has proposed 20 % stock dividend and 21 % cash dividend on its total paid-up capital to the shareholders from its total profit of the previous fiscal.
The year has been exceptional for NIBL, as it became the first private sector commercial bank in Nepal to meet Nepal Rastra Bank’s requirement of achieving total paid-up capital of Rs8 billion, as per a media release issued by the bank. “The bank has expanded its paid-up capital to Rs 8.71 billion — the highest among all private commercial banks in Nepal — to attain a total capital base of Rs 16.29 billion.”
The AGM highlighted NIBL’s major achievements in fiscal 2015-16, future plans, performance targets and strategies. The AGM also elected Bhuwaneshwar Prasad Shah and Niranjan Man Shrestha as directors representing general public shareholders, and Binod Kumar Guragain as director, representing the then RastriyaBanijya Bank promoter group.
During the year, NIBL earned operating profit of Rs 4.13 billion before provision compared to previous year’s Rs 3.11 billion. The net profit of NIBL grew by 30.02 per cent or Rs 589.03 million to Rs 2.55 billion against Rs 1.96 billion of previous year. NIBL’s paid-up capital reached Rs 8.71 billion (after issuance of 21 per cent bonus share proposed in fiscal year 2015-16).
In fiscal 2015-16, NIBL’s deposits increased by 19.86 per cent, reaching Rs 108.63 billion. The total lending of the bank went up by 28.54 per cent to reach Rs 87.01 billion. Due to recovery of non-performing loans (NPLs) during the year, the NPA ratio of the bank declined to 0.68 per cent against 1.25 per cent last year, the release adds.
As the bank achieved yet another milestone — 30 years of banking service — it has been striving for growth, enhancing customer service experience and strengthening relationship with all its stakeholders. Further, NIBL will be acquiring Ace Development Bank Ltd to provide consolidated service to further enhance customers’ needs and expand nationwide reach.