Kabeli Bikas Bank (KEBL) has proposed to distribute 35 percent bonus shares to shareholders from the profit of the last financial year. A meeting of the Board of Directors of Bikas Bank held on Sunday proposed a bonus of 35 percent of the paid-up capital.
The bank currently has a paid-up capital of Rs 210 million. The bank will distribute bonus shares worth Rs 73.7million equivalent to 35 percent. The proposed bonus shares will be distributed to the shareholders only after the approval of the Rastra Bank and approval from the upcoming Annual General Meeting of the Microfinance Company. After the bonus, the paid-up capital of the bank will reach Rs 284.29 million.
Kabeli Bikas Bank had acquired Mount Makalu Development Bank and started its integrated business from June 15. 88 units of Mount Makalu shares equivalent to 100 units of Kabeli have been acquired at swap ratio.
There is a provision of no tax on dividends distributed to the shareholders of the merged and acquired companies within two years from the date of merger. Accordingly, the bank has not offered cash dividend for tax purposes.