In the previous FY, companies used to conduct AGMs and distribute dividend before the festive season. The festive season is merely a month away, but, most of the companies have not yet announced dividends this year.
The major reason for this delay in the dividend announcement and AGM call is the ongoing pandemic caused by COVID-19. The lockdown imposed by the government has stand stilled all economic activities. In this scenario, Nepal Rastra Bank, the central bank of Nepal extended the loan repayment deadline till mid-October for the sake of business communities.
Moreover, the central bank has allowed BFIs to calculate the interest received till mid-October in their profit of the last FY. Thus, the BFIs are delaying the dividend announcement so that they can recover their interest and loans.
Apart from this, COVID-19 infection seen in NRB is also delaying AGM call out of the listed companies. Most of the employees in NRB are in home isolation following their COVID-19 detection, thus, the normal functioning of NRB has been affected.
Till date, Machhapuchchhre Bank is the only commercial bank that has announced dividends of the last FY. None of the development banks have announced dividend while 4 microfinance companies have announced dividend. Similarly, 17 mutual funds and the highest stock price holder Unilever Nepal has also announced a dividend for the last FY.
