Let’s go over the list of Highest Dividend paying Banks in Nepal. A-Class banks are considered safe investments in Nepal and they consistently provide dividends in form of bonus shares and cash dividends. Many banks in Nepal have already finalized and announced the the dividend (both cash and bonus) for the fiscal year 2077/78.
For banks, dividend is a major point for price fluctuations for shares in Nepal, dividend provides cashflow and people who need cashflow consider banks with high dividend safe bets. However, high dividend is not the only factor you should consider when you are buying shares of a company in secondary market.
So let’s go over the list of highest dividend paying banks in Nepal.
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Highest Dividend Paying Banks in Nepal – Last Dividends
| S.N. | Symbol | Company | Bonus Dividend(%) | Cash Dividend(%) | Total Dividend(%) | Book Closure Date | Bonus Listing Date |
| 1 | NABIL | Nabil Bank Limited | 33.6 | 4.4 | 38 | 2021-12-31 [Closed] | 3/29/2022 |
| 2 | RBBL | Rastriya Banijya Bank Limited | 30 | 3 | 33 | 2022-01-03 [Closed] | Not Listed |
| 3 | HBL | Himalayan Bank Limited | 21.38 | 4.62 | 26 | 2021-12-26 [Closed] | Not Announced |
| 4 | ADBL | Agricultural Development Bank Limited | 20 | 1.0526 | 21.0526 | 2021-12-31 [Closed] | 2/27/2022 |
| 5 | SANIMA | Sanima Bank Limited | 17 | 0.8947 | 17.8947 | 2021-10-24 [Closed] | 1/5/2022 |
| 6 | NBL | Nepal Bank Limited | 14 | 3 | 17 | 2021-12-07 [Closed] | 2/21/2022 |
| 7 | PCBL | Prime Commercial Bank Limited | 16 | 0.6313 | 16.6313 | 2021-12-08 [Closed] | 2/27/2022 |
| 8 | NIB | Nepal Investment Bank Limited | 12.611 | 3.389 | 16 | 2021-11-22 [Closed] | 2/15/2022 |
| 9 | CZBIL | Citizens Bank International Limited | 12.913 | 3.087 | 16 | 2021-10-08 [Closed] | 12/16/2021 |
| 10 | NMB | NMB Bank Limited | 12.5 | 3.3 | 15.8 | 2021-12-22 [Closed] | 3/20/2022 |
| 11 | NBB | Nepal Bangladesh Bank Limited | 12 | 3.5 | 15.5 | 2021-11-01 [Closed] | 2/20/2022 |
| 12 | SBL | Siddhartha Bank Limited | 14.25 | 0.75 | 15 | 2022-01-02 [Closed] | 2/27/2022 |
| 13 | MBL | Machhapuchchhre Bank Limited | 13.3 | 0.7 | 14 | 2021-10-24 [Closed] | 1/20/2022 |
| 14 | BOKL | Bank of Kathmandu Limited | 10 | 4 | 14 | 2021-11-26 [Closed] | 2/13/2022 |
| 15 | GBIME | Global IME Bank Limited | 10 | 3.5 | 13.5 | 2021-11-29 [Closed] | 2/22/2022 |
| 16 | SCB | Standard Chartered Bank Nepal Limited | 10 | 3.06 | 13.06 | 2021-11-26 [Closed] | 2/16/2022 |
| 17 | PRVU | Prabhu Bank Limited | 12 | 0.63 | 12.63 | 2021-12-19 [Closed] | 2/22/2022 |
| 18 | MEGA | Mega Bank Nepal Limited | 10 | 2.07 | 12.07 | 2021-11-30 [Closed] | 1/17/2022 |
| 19 | LBL | Laxmi Bank Limited | 8 | 3.5 | 11.5 | 2021-12-10 [Closed] | 2/20/2022 |
| 20 | EBL | Everest Bank Limited | 6 | 4.32 | 10.32 | 2021-12-03 [Closed] | 3/20/2022 |
How much can you make from dividends?
So how much can you really make from dividends? Let give you an example to help you understand better.
In the table of highest dividend paying banks in Nepal above, NABIL has given 33.6% bonus shares and 4.4% cash shares, totaling total of 38% dividend. Note that 4.4% cash is not given on the bases of LTP, i.e the current trading or market price of NABIL, but it will be given on the basis of par value of the company. You can think of the par value as the price at which the IPO of the company was opened. So in case of NABIL, you’ll not receive 4.4% of current share value(826), but you’ll get 4.4% of par value(100). Let’s calculate the dividends now:
4.4% of 100 NRs = 4.4NRs.
Your NABIL share holdings = 50, Cash Received = 50*4.4 = 220NRs, not much considering the price of NABIL currently is 826 NRs.
Now how much Bonus Shares will you get?
For this example, we have 50 NABIL shares, the bank is distributing 33.6% bonus shares. 33.6% of 50 is 16.8, let round it to 16 and hence, you’ll now have 66 shares of NABIL Bank.
Bonus shares is beneficial in the long run depending that the company performs well. For the example that we considered above, let’s say the next year too NABIL distributes the same dividend. That means how we’ll have 66*4.4 = 290.4 NRs as cash dividend, and now shares quantity will increase to 88 (66 Original shares + 22Bonus shares). Now well have 88 shares of Nabil Bank!
In the following years this will keep growing and your cashflow will also keep increasing!
If you hold NABIL for 10 years, you’ll have a whopping 905.80 shares of Nabil Bank, and if you still get 4.4% cash dividend, that means you’ll have 3982 NRs bonus shares, and that’s only from NABIL Bank
So if the bank that is issuing the bonus shares performs well, your shares holding and your cashflow from cash dividends will be compounded in the coming years.
Highest Dividend Paying Bank Shares in Nepal – Conclusion
In the list above we’ve seen the highest dividend paying banks in Nepal. We’ve can see that most the the top dividend paying banks in Nepal give bonus shares and cash dividends. The highest bonus shares percent is given by NABIL(33.6%) and the highest cash dividend is given by Himalayan bank limited HBL(4.62%). Apart from the bank sector, some companies pay upto 650% cash dividends! You can check the list here: Highest Dividend Paying Companies in Nepal
Since most of the Banks in Nepal give both cash dividend and bonus shares, it means that even if the company doesn’t pay much cash dividend or increase it’s cash dividend, your cashflow will increase due to you now owning more shares of the company that was distributed as bonus shares!
So we’ve discussed in detail about the highest dividend paying banks in Nepal. We’ve seen how the power of compounding will help you to increase your wealth over time. If you have any queries or questions, do comment in the comment section below! Cheers!
