According to the Nepal Stock Exchange (NEPSE), Prabhu Bank’s announcement of the dividend proposal has prompted them to seek clarity.
In its dividend proposal for the fiscal year 2077/78, Prabhu Bank Limited (PRVU) proposes a payout of 12.63 percent. During the 228th meeting of the board of directors, which was conducted on Kartik 23, it was agreed to give Rs. 11.34 Arba as a dividend on the paid-up capital. The proposal includes the issuance of 12 percent bonus shares at Rs 1.36 Arba and the payment of a 0.63 percent cash dividend (for tax reasons).
By conducting a board meeting during market hours to propose the yearly payout, the corporation violated the rules governing the listing of shares on the stock exchange. Because of this, the corporation has been forced to submit a clarification within seven days.