Review Nepal News

NBL Chairman Adhikari Resigns after Government Obstruct to Distribute Dividend to the Share Holders

www.reviewnepal.com
  Kathmandu, Nepal      February 09 2021

Kathmandu, Nepal, February 9, 2021: Nepal Bank Limited (NBL) Chairman Basudev Adhikari has resigned from his post expressing dissatisfaction after government created intervention in the bank’s decision to provide dividends to the shareholders. 

As the Annual General Meeting (AGM) of the bank held on January 13 had approved the proposal of the management committee to provide 16 percent dividend that includes- 12 percent bonus share and four percent cash dividend- the Ministry of Finance (MoF) has been exerting pressure to the Chairman Adhikari to reduce the dividend to 10 percent. 

Following the approval from the AGM, the bank had initiated process to distribute the dividend as the Nepal Rastra Bank (NRB), the central bank of Nepal, had also given green signal to implement the decision.
However, MoF officials have a claim that they had raised questions over the bank’s decision for not taking prior approval from the ministry to distribute dividends as per the Companies Act 2017. 

As the government has been creating obstructions in different pretext, most of the state-owned agencies including the NBL have failed to function smoothly.  Earlier, the MoF had also barred the Salt Trading Corporation (STC) to implement its decision to distribute a 10 percent dividend from the net profit of the fiscal year 2016/17. 

Likewise, another state owned insurance company- Rastriya Bima Company Limited (RBCL) has failed not only to distribute dividend to the share holders but not conducted auditing of the company, due to the apathy and intervention of the government.