Unique Nepal Laghubitta Financial Institution Limited has announced that it will not distribute any dividends, either in cash or bonus shares, to its shareholders for FY 2081/82. The decision was taken unanimously during the 108th board meeting held on Poush 22, 2082.
The board cited a rising trend of loan defaults across the country in recent years, largely due to activities against microfinance institutions. This has weakened collective guarantee obligations among members and created significant challenges in loan recovery.
Additionally, the board noted that the economic slowdown has adversely affected the operations of borrower members’ businesses, reducing income. Youth migration abroad and the overall economic downturn have limited the expansion of loan investments, leading to a rise in non-performing loans and increased expenditure on loan loss management. These factors have reduced profits and negatively impacted cash flow.
While the institution wishes to provide dividends, the board emphasized the need to prioritize safe and stable operations under current conditions. Following the guidance of Nepal Rastra Bank, it was decided that based on the financial statements for FY 2081/82, the institution cannot distribute cash or bonus dividends from retained earnings.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
