Three public entities in Nepal, including Nepal Telecom (NT), Agriculture Development Bank Limited (ADBL), and Citizens Investment Trust (CIT), have announced dividend distributions of up to 30 percent to their shareholders.
NT has proposed a 30 percent dividend, marking one of the lowest dividend payouts in the past 15 years. Historically, the state-owned telecommunications company has averaged over 40 percent in dividends. For the fiscal year 2023/24, NT has proposed a total cash dividend of Rs 5.40 billion, based on its paid-up capital of Rs 18 billion. NT’s revenue declined to Rs 38.9 billion in the review period, down from Rs 45.57 billion six years ago. Additionally, its net profit dropped to Rs 6 billion, compared to Rs 15.67 billion in FY 2017/18. According to NT, the decline in revenue is largely due to the reduced use of traditional voice calls, replaced by over-the-top (OTT) services like Viber, WhatsApp, and Skype, along with increased competition from internet service providers offering diversified products.
The Citizens Investment Trust (CIT) has announced a 13 percent dividend, which includes seven percent in bonus shares and six percent in cash dividends. The dividend proposal was approved at the CIT’s annual general meeting held on Sunday.
Similarly, the Agriculture Development Bank Limited (ADBL) has proposed to distribute a total of 10.53 percent dividends, including three percent in bonus shares and 7.53 percent in cash dividends. The proposal is awaiting final approval from Nepal Rastra Bank, following a board meeting of the ADBL. Notably, the government-owned financial institution did not provide dividends to its shareholders last year.
