Majority of Microfinance Companies Opt Against Dividend Distribution

  53 sec to read

The majority of microfinance companies listed on Nepse have not distributed dividends to their investors in the current fiscal year. Out of the 55 microfinance companies listed, only 15 have distributed dividends to their shareholders from the profit of the last fiscal year (FY), while 27 have already announced their decision not to distribute dividends. Notable microfinance companies such as Himalayan Microfinance, Gurans Microfinance, Infinity Microfinance, Laxmi Microfinance, CYC Microfinance, Sadhana Microfinance, and others have chosen not to distribute dividends. Similarly, Gramin Bikas Microfinance, Nirdhan Uthan Microfinance, Kalika Microfinance, and others have also made similar decisions.

Hard hit by the regulatory tightening of Nepal Rastra Bank including tightening of service charges and interest rates since last year, along with the economic recession, the majority of microfinance companies saw their non-performing loan (NPL) surging in the current fiscal year. The profits of listed companies have been directly affected by the increasing bad loans, thereby impeding dividend payouts to shareholders. Additionally, the dividend rate of companies that announced dividends has decreased compared to previous years. 

No comments yet. Be the first one to comment.
"