Katmandu. Amoung Top 20 commercial banks, 5 Banks has declared dividend FY on 2080/081 and 10 banks are yet to declared. 4 banks would not give dividend  because their income is negative . Siddharth and NMB Banks may not declare dividend because last year's dividend capacity is only 2.60 and 1.30 percent respectively.

So far Avest Bank, Global IME Bank, Sanima Bank, Prime Commercial Bank and Citizens Bank have declared dividends. Out of 5 banks, 3 banks have emphasized on bonus shares, while 2 banks have only given cash dividends. Even though Everest Bank has the ability to give 27.15% dividend, it has given only 15.53% dividend by paying 10% bonus shares and 5.53% cash dividend. Citizens Bank, on the other hand, seems to have given dividends only to the extent of its ability to pay dividends. The distributable earnings per share of the bank is 4.17%, 4% bonus shares and 0.21% cash dividends have been distributed for tax purposes.

Sanima and Prime Commercial Bank have announced cash dividends this time from last year's profits. Sanima Bank has been increasing its capital by giving bonus shares of around 10 percent annually in the past, but this time it has announced only 5.2632 percent cash dividend. However, Sanima Bank has the ability to distribute 10.4 percent dividend. While Prime Commercial Bank has the ability to distribute 6.18 percent dividend, it has announced to distribute 5 percent cash dividend.

Among the remaining banks to offer dividends, Standard Chartered Bank has seen the most capacity. Its dividend distribution capacity for last year is 26.50 percent. Similarly, 19.79 percent dividend distribution capacity of Krishi Bikas Bank, 14.26 percent of Nabil Bank and 10.76 percent of Nepal SBI Bank has been seen.

Now the dividend capacity of banks yet to be declared is only around 5 percent. The dividend capacity of Lakshmi Sunrise is 5.55, Nepal Bank is 5.24, Prabhu Bank is 5.2, Machhapuchhre Bank is 4.01 percent. The dividend potential of Nepal Investment Mega Bank, Kumari Bank, NIC Asia Bank and Himalayan Bank is negative, so these 4 banks will probably not declare dividend from last year's profit.