Three major public organizations—Nepal Telecom (NT), Agriculture Development Bank Limited (ADBL), and Citizens Investment Trust (CIT)—have announced dividends for their shareholders, ranging up to 30%.
Nepal Telecom (NT) has proposed a 30% dividend for its shareholders. This is one of the lowest dividends NT has offered in the last 15 years. In the past, the state-owned telecom company had been giving out more than 40% in dividends on average. With a paid-up capital of Rs 18 billion, NT plans to distribute Rs 5.4 billion as cash dividends for the fiscal year 2023/24. The company’s revenue dropped to Rs 38.9 billion, down from Rs 45.57 billion six years ago. Similarly, its net profit fell to Rs 6 billion in the last fiscal year, a significant decline from Rs 15.67 billion in 2017/18.
NT has faced a decline in revenue due to the reduced use of traditional voice calls, as more people are using internet-based services like Viber, WhatsApp, and Skype. Additionally, increased competition from numerous internet service providers offering various products has further impacted NT’s business.
Meanwhile, Citizens Investment Trust (CIT) has announced a 13% dividend for its shareholders, which includes 7% in bonus shares and 6% in cash dividends. The decision was approved at CIT’s annual general meeting held on Sunday.
Agriculture Development Bank Limited (ADBL) has proposed a 10.53% dividend, including 3% bonus shares and 7.53% in cash dividends. The bank is awaiting final approval from Nepal Rastra Bank for this proposal. Last year, ADBL did not distribute any dividends to its shareholders.
In summary, NT, CIT, and ADBL are all offering dividends this year, though NT’s payout has significantly dropped compared to previous years.