NCHL concludes 12th AGM; endorses 30% dividend for shareholders
Mon, Dec 4, 2023 10:31 AM on Latest, AGM/Special AGM,
Nepal Clearing House Ltd. (NCHL) has concluded its 12th Annual General Meeting on 3rd December 2023 (17th Mangsir, 2080) for the fiscal year 2079/80, at Radisson Hotel, Kathmandu. The AGM approved the issuance of 28.5% bonus share and 1.5% cash dividend for tax purpose. The paid-up capital of NCHL after the bonus will be NRs.1,006,637,900, corresponding to which it has also approved to increase its authorized capital to 2 Billion. Increase in capital will be used primarily to support its investments in National Payment Switch, additional payment systems for national and cross border transactions, and enhance risk management systems.
The AGM has also given authority to the Board for merger/acquisition of other entity without change in the current shareholder structure of NRB and BFIs. Similarly, NCHL will also initiate feasibility study for establishing its subsidiary for research and develop of financial & payment technology and software for NCHL, BFIs and other related stakeholders.
The net profit of the company has increased by 6% during the FY 2079/80, which is mainly due to the increase of over 16% of transactions processed through NCHL. It processed total of 81.9 Million transactions equivalent to settlement value of NRs 14.1 Trillion through its clearing and settlement systems during the fiscal year.
NCHL has holding of 10% by Nepal Rastra Bank and 90% by various banks and financial institutions. The Board of NCHL is represented by 1 from NRB, 3 from commercial banks, 1 from development banks and 1 from finance companies and 1 Independent director. Along with NCHL-ECC, NCHL-IPS and RPS systems, it has also been operating various channels including connectIPS, CORPORATEPAY, connectRTGS, National Payments Interface (NPI) and NEPALPAY QR. It is currently implementing National Card Switch and NEPALPAY domestic cards under NPS. It has over 53 BFIs as its direct members and over 95 non-bank institutions as indirect or technical members within its network.
