The bank has declared 10 percent bonus share and 10 percent cash dividend for its shareholders. In the previous FY, it distributed 10.53 percent. However, the dividends announced by other listed companies were mixed, while the returns of mutual funds fell overall.
Following Garima Bikas Bank, Super Madi Hydropower has also increased the dividend rate. The company, which had paid 5.26 percent dividend previous FY, has declared a total dividend of 15.789 percent including 15 percent bonus share for last FY. Similarly, Mandu Hydropower has increased the cash dividend from 10 percent to 12 percent. Shangrila Development Bank has declared a total dividend of 10.5263 percent with a bonus of 4 percent.
Among commercial banks, Everest Bank's dividend has come down to 15 percent (5 percent bonus and 10 percent cash) from 20 percent in the previous year. Similarly, Global IME Bank has increased its dividend from 8 percent to 10 percent and 6 percent bonus share. The dividend of ICFC Finance has decreased from 15.79 percent to 10.52 percent, while the dividend of Nepal Infrastructure Bank (NIFRA) has decreased from 6.32 percent to 5.26 percent.
While listed companies have been providing relief to investors through a combination of bonuses and cash dividends, the performance of mutual funds has been disappointing. The yields of both open-ended and closed-ended funds have fallen compared to the previous year.
Siddhartha Investment Growth Scheme-2, which had distributed 20 percent dividend last year, has declared only 8 percent this year. Sanima Growth Fund reduced from 15.79 percent to 5 percent, NMB 50 Fund from 15 percent to 3.15 percent and Kumari Sabal from 9 percent to 2.9 percent. Himalayan 80-20 has given some relief while Prabhu Smart Fund has increased its dividend from 10 percent to 12 percent. Prabhu Select Fund has maintained a dividend of 12% for both consecutive years.
In the open-ended fund, NMB Saral Savings Fund has been able to increase its return from 4.27 percent to 5.25 percent. On the other hand, the dividend of Kumari Sunaulo Investment Scheme has come down to 4.7 percent from 8.88 percent, while the return of Siddhartha Systematic Investment Scheme has also decreased from 8 percent to 3 percent.
Looking at the overall data, it seems that mutual funds have not been able to maintain the returns of the previous year due to the volatility in the stock market. However, some strong development banks, hydropower and commercial banks, including Garima Bikas Bank, have increased their capital through bonus shares and have given good returns to the investors by adding cash dividends.
