NABIL BANK: A Remarkable Investor Payback Journey from 6,000 Rupees(1987) to 3 Crores 90 Lakhs Rupees (2023)

In this fascinating analysis, we delve into the investor payback history of NABIL BANK, highlighting its remarkable growth and returns. Starting with an initial investment of 6,000 rupees, we witness how this humble sum has transformed into an impressive 3 crores 90 lakhs rupees.

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NABIL BANK, Nepal's pioneering private commercial bank, has been a prime example of long-term investment success. Through a combination of share dividends and cash dividends, early investors have experienced substantial paybacks over the years.

The bank's IPO in 1987 marked the beginning of this prosperous journey. Investors were allocated 100 shares at a price of 60 rupees per share. While dividends were initially limited, NABIL BANK began consistently distributing favorable dividends thereafter.

First, let's explore the impact of share dividends. With share dividends, investors witness an increase in the number of shares they hold. If the original 100 shares were retained and share dividends of X% were consistently received, the total number of shares would grow substantially. The analysis reveals that if the initial 100 shares were retained since the IPO, investors would now possess an impressive 59,358 shares.

Next, we consider the cash dividends. These dividends are distributed in the form of cash payments. If we calculate the cash dividends received based on the number of shares held and the dividends paid each year, we discover a substantial cash profit. Investors who held on to their NABIL BANK shares from the beginning would have received approximately 42 lakhs 25 thousand rupees in cash profits alone.

Combining the benefits of both share dividends and cash dividends, the true extent of the investor payback becomes evident. With the current market value of NABIL BANK shares, calculated at 586 rupees, the total value of the shares purchased for 6,000 rupees in 1987 now stands at a staggering 3 crores 90 lakhs rupees.

This remarkable journey of NABIL BANK showcases the power of long-term investments and the potential for substantial returns. It serves as an inspiring reminder that investing in companies with consistent growth and favorable dividends can yield exceptional paybacks.

As we conclude this analysis, we invite you to reflect on the lessons learned and consider the possibilities that lie within the world of investments. Stay tuned to our channel for future videos covering various topics, including the stock market, business, technology, and more.