Commercial Bank makes cash cum scrip dividend

Friday, 10 February 2012 00:00 - - {{hitsCtrl.values.hits}}

Commercial Bank yesterday announced that its Board has recommended a final dividend of Rs. 3.50 per share comprising Rs. 1.50 per share in cash and Rs. 2 in the form of a scrip dividend.

The dividend is for both voting and non-voting shareholders. Previously Commercial Bank paid a Rs. 1 per share second interim dividend in December and Rs. 1.50 per share first interim dividend in November for the 2011 financial year.

The Board approval follows the bank having successfully carried out the solvency test for the final dividend as required by the Companies Act.

Commercial Bank has 765 million voting shares in issue and 52.36 million non-voting. The number of shares to be issued on the basis of Rs. 2 per existing share after providing for 10% withholding tax is 13.58 million (voting) and 1.1 million (non-voting) with Rs. 1.53 billion and Rs. 104.7 million respectively as amounts capitalised. The proportion which the shares are to be issued will be 1 for 56.3 for voting shareholders and 1 for 47.2 for non-voting.

The value of shares as of the date of Board approval (8 February) was Rs. 101.40 (voting) and Rs. 85 (non-voting). The announcement however failed to boost share price of Commercial Bank yesterday whilst overall it was a highly depressing market. Voting share dipped by 40 cents to Rs. 101 after hitting a high of Rs. 101.90 whilst non-voting dipped by 60 cents to Rs. 84.40 after an intra-day high of Rs. 86. The final dividend is subject to shareholder and regulatory approval.