The average dividend capacity has been calculated on the basis of net profit earned and reserve maintained in shareholders fund by the banks
In the last FY, only 3 banks logged decline in their net profit. Most of small banks have increased their net profit. In the last FY, Rastriya Banijya Bank had logged the highest net profit.
As per the report, eight banks have below average while 18 banks have above average dividend capacity.
As per the data, Everest Bank has the highest dividend capacity of 43.67 percent followed by Nabil Bank at 39.94 percent.
Meanwhile, Century Bank logged the lowest dividend capacity of 9.54 percent.
However, the banks do not always distribute dividend as per their capacity. Few of them distribute below the average point while few of them also give the maximum limit in dividend capacity.
In the last FY, Nabil Bank had distributed the highest dividend of 38 percent. In the meantime, Civil Bank distributed 5.23 percent dividend.
