NCHL AGM approves 15 percent bonus shares, authorizes setting up subsidiary

The 15th annual general meeting of Nepal Clearing House Limited (NCHL) has passed a proposal to give shareholders bonus shares and cash dividend for tax purposes. The meeting, held in Kathmandu on Wednesday, also authorized the board of directors to set up a separate public limited company to develop technology and software for the financial sector.

The company said the proposed subsidiary would carry out research as well as build and install software related to banks, financial institutions and payment technology. According to the company, NCHL's paid-up capital will reach around Rs 1.68 billion after distribution of the bonus shares.

A press release stated that the increased capital would be used to strengthen the national payment system, additional payment systems for cross-border transactions, digital public infrastructure and risk management.

The meeting approved the balance sheet, profit and loss account and cash flow statement along with the audit report for fiscal year 2082/83. According to the company, around Rs 21,000 billion worth of nearly 240 million transactions were cleared through NCHL's systems in the last fiscal year.

The company's net profit for the same period stood at around Rs 410 million, down nearly 2 percent from the previous year. According to the company, Nepal Rastra Bank holds about 9.5 percent ownership in NCHL, with the remaining share held by banks and financial institutions.