The number of listed companies not distributing dividends to their shareholders is more than the companies that do. Out of 249 companies listed in Nepal Stock Exchange (NEPSE), 97 have decided not to distribute dividends to their shareholders this year.
Some companies are declaring dividends from the distributable profits from 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.
Seven 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. Prabhu Bank, Nepal Investment Bank and Agriculture Development Bank has not declared dividend till now. The rest of the banks have declared dividends and passed them by the AGM.
Among the listed microfinance companies, Himalayan, Gurans, Infinity, Laxmi, Sivaisi, Sadhana, Mero Microfinance, Ganapati, Mankamana Smart, Upakar, Samudayik, Forward, Nadep, Sabaiko, Unnati Sahakarya, Nerude Microfinance, Mahila Laghubitta, Jalpa Samudayik Laghubitta, Grameen Bikash Laghubitta, Nirdhan Utthan Laghubitta, Kalika Laghubitta, Kisan Laghubitta and Dhaulagiri Laghubitta have decided not to distribute dividends.
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. 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.
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. Six companies under hotel and tourism sector have announced their annual general meeting. Three of them have decided to distribute dividends to the investors. Three hotels Kalinchok Darshan, Chandragiri Hills and City Hotel have decided not to distribute dividends to the shareholders.