NEPSE banking sub-index reaches two-year high following commercial bank rallies

Commercial bank stocks traded on the Nepal Stock Exchange observed a sharp increase, lifting the banking sub-index to its highest point in two years. The surge followed a series of dividend distributions declared by several commercial financial institutions during recent board meetings, which stimulated buying activity across the equity market. Among the individual performances recorded between 26 August and 28 October, Laxmi Sunrise Bank registered the largest price appreciation among nineteen commercial lenders. Its shares increased by 25.86 percent, rising from Rs 216.90 to Rs 273. Other commercial institutions also reported growth during the trading period, including NMB Bank, which saw its share price rise by 15.36 percent. Multiple banks confirmed their dividend structures for shareholders. Siddhartha Bank proposed a 20 percent total dividend, split evenly into 10 percent cash and 10 percent bonus shares. Nabil Bank announced a 15.8 percent payout, consisting of 10.8 percent cash alongside 5 percent bonus shares. Everest Bank declared a 15 percent distribution, combining 10 percent cash with 5 percent bonus shares. Additional dividend statements came from other major lenders in the sector. Global IME Bank declared a 10 percent payout comprising 6 percent cash and 4 percent bonus shares. Sanima Bank announced a 10 percent cash dividend, while Machhapuchchhre Bank declared a 6 percent total return divided equally between cash payments and bonus shares.