Market Watch, Stock News

BOAN to give 5% cash dividend

Published by Octron on August 31, 2009

As written by Third Eye in his article regarding Ice Age, the market seems to be crashing soon to correct itself. Secondary market trading seems to be talk of yesteryears. Some call it delayed propagation of global recession, some just game by Kheladi’s. One of the interesting thing in the secondary market is when you can’t understand the trend, its cause and affects, then people simply tend to believe and make others believe that market has been driven by some Mafia or Kheladi.

After Ciitizen’s 10% followed by NIB’s 20% cash dividend announcement now comes proposal from Bank of Asia Nepal (BOAN); 5% dividend for FY 2065/66 shareholders. People are just awed by the news specially those who bought it in the secondary market. Even those got allotted in the IPO are feeling cheated as the return (5%) is still lower than some commercial bank rate of interest. People who stood in queues applying and being allotted only 10% of what they had applied for and finally getting 5% cash dividend seems like slap on the face even for the IPO share holders.

According to 47th BOD meeting held on 31st August 2009, the bank has proposed 5% cash dividend which has to be further approved by upcoming AGM & NRB. According to fourth quarter financial report of the bank, it has earned Rs. 61.510 millions net profit and Rs. 92.826 millions operating profit. The bank has Rs. 1 billion paid up capital and Rs. 65.972 millions in its reserve and surplus. The rumor is still going on like Citizen Bank, the bank will also soon announce a proposal for 1:1 Right Shares.

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