January 19: The number of listed companies that to not distribute dividends to their shareholders is more than the companies that pay the dividends to the shareholders.

Out of 249 companies listed in Nepal Stock Exchange (NEPSE), 97 have decided not to distribute dividends.

Some companies are declaring dividends from the distributable profits up to the last fiscal year (FY) and some have already declared and endorsed it by the annual general meeting. Some companies have started informing through NEPSE that they have decided not to distribute dividends.

Last year's recession has affected the profits of the companies. On the other hand, the listed companies have not been able to distribute dividends to the shareholders also due to regulatory restrictions.

Bad loans of banks have affected various other sectors. Experts say that since this has directly affected the profit of the listed companies, such companies have not been able to distribute dividends to the shareholders. In the case of hydropower companies, most of them have just sold their shares to the general public and got listed in the secondary market of securities. Most of them have not even started producing electricity. This is the reason why they are not able to distribute dividends.

Commercial Banks

Five of the commercial banks listed in NEPSE have informed that they will not distribute dividends this year. Himalayan Bank, NMB Bank, Prime Commercial Bank, Kumari Bank and Nepal Bank have decided not to pay dividends. Three banks have not declared dividends yet. Nepal Investment Mega Bank, Prabhu Bank and Agriculture Development Bank have not declared dividend till now. The rest of the banks have declared dividends and passed them by the AGM.

Microfinance

Most of the microfinance companies do not pay dividends. Among the listed microfinance companies, Himalayan, Gurans, Infinity, Laxmi, Sivaisi, Sadhana, Mero Microfinance, Ganapati, Mankamana Smart, Upakar, Samudayik, Forward, Nadep, Sabaiko, Unnati Sahakarya and Nerude Microfinance have decided not to distribute dividends.

Gramin Bikas, Nirdhan Uthan, Kalika, Kisan and Dhaulagiri microfinance are also in the list of companies that have decided not to distribute dividends. So far, 12 microfinance companies have announced to distribute dividends from last year's profits.

Development Banks

This year, only seven of the listed development banks have announced dividend for the investors. Jyoti, Kamna Seva, Sindhu and Saptakoshi development bank have decided not to distribute dividends.

Similarly, Narayani, Excel, Karnali, Corporate and Green development banks are yet to announce the decision regarding dividend and annual general meeting.

Finance Companies

So far, only three finance companies have declared dividends. Nepal, Goodwill, Samriddhi, Progressive, Pokhara and Guheshwari Merchant and Finance have decided not to distribute dividends. Similarly, Gorkhaz, Best, Janaki, Central, Multipurpose and Reliance Finance have not yet decided the date of dividend announcement and annual general meeting.

Hydropower

Out of the 91 listed hydropower companies, only 13 have proposed to distribute dividends. Forty-nine companies have held annual general meetings without announcing dividends. The remaining 29 companies have not taken any decision regarding the annual general meeting and dividend so far.

Investment

So far, five companies under the investment group have announced their annual general meeting. Four of them have declared dividends for the investors from the profits made during last year. NRN Infrastructure Bank has informed that it will not declare dividend. The date of dividend announcement and annual general meeting of the two companies is yet to be decided.

Hotels and tourism

Six companies under this group have announced their annual general meeting. Three of them have decided to distribute dividends to the investors. Three including Kalinchok Darshan, Chandragiri Hills and City Hotel have decided not to distribute dividends to the shareholders.

Production and processing

Eight companies of this group have called their annual general meeting. Among them, six companies have announced to pay dividends to the investors. Two of them have decided not to distribute dividends. They include Bottlers Nepal Balaju and Sonapur Minerals and Oil Limited.

Other group

Among other companies under the group, only Nepal Telecommunication Company has announced dividends. Three other companies have decided not to pay dividends. Muktinath Agricultural Company, Nepal Republic Media and Nepal Warehousing Company have decided not to pay dividends.

Non-Life Insurance Group 

Among the listed non-life insurance companies, Prudential Insurance and Neco Insurance have decided not to distribute dividends from last year's profits. Nepal Insurance Company has announced dividend. Nine non-life insurance companies are yet to make a decision regarding the distribution of dividends.