hm-atif-wafik

25 Listed Banks to Pay Tk 2,265cr Cash Dividend

Cash dividends of Tk 2,265 crore will be paid to shareholders by 25 banks listed on the stock exchange amid the current liquidity crisis in the capital market.

The banks have already declared dividends which will be distributed at the Annual General Meeting ( AGM) of the banks after approval.  

This information was obtained from the data published by the Dhaka Stock Exchange ( DSE) and from the review of the bank's financial accounts.

The boards of 25 out of 30 banks listed mostly on the capital market have announced full or partial cash dividends. The total amount of the cash dividend declared is Tk 2,265 crore.

This year, however, only AB Bank, IFIC Bank, Rupali Bank and First Security Islamic Bank announced bonus shares. The loss-making ICB Islamic Bank did not announced a dividend.

The highest cash dividend of Tk 161 crore will be paid by Islamic Bank to the shareholders. Prime Bank will offer Tk 152.86 crore's second-highest cash dividend. Citibank will pay Tk 152.46 crore's third largest cash dividend.

However, a directive of Bangladesh Bank has imposed restriction on cash dividend higher than  15 percent therefore several banks will have to curtail their dividend this year despite announcement. 

Eastern Bank, Dutch-Bangla Bank and NCC Bank declared a cash dividend of more than 15% prior to the issuance of the Bangladesh Bank Directive. Eastern Bank posted 25 per cent, Dutch-Bangla Bank 30 per cent and NCC Bank 17 per cent cash dividend.

Directors of banks and entrepreneurs hold 40.34 percent shares of the listed banks, which entitles them to get a total cash dividend of Tk 913.66 crore. Institutional and general investors will get the remaining Tk 1,351.23 crore.

Shakil Rizvi, director of the Dhaka Stock Exchange ( DSE), said, "The cash dividend provided by banks is good news for investors. This was important and will build momentum in the market.

Bangladesh Merchant Bankers Association (BMBA) President Sayedur Rahman said that some banks have declared cash dividends higher than expected, which is good news for the stock market."

However, many are sceptical that coronavirus crisis will cause a collapse in banking profits. In fact, the bank's interest calculation has not stopped which is the main source of profit of the banks.


Subscribe Shampratik Deshkal Youtube Channel

Comments

Shampratik Deshkal Epaper

Logo

Address: 10/22 Iqbal Road, Block A, Mohammadpur, Dhaka-1207

© 2024 Shampratik Deshkal All Rights Reserved. Design & Developed By Root Soft Bangladesh