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Earlier, in May 2020, the Bangladesh Bank imposed certain conditions on bank dividend declarations to keep the liquidity flow and capital base of banks strong in the wake of the deadly Covid-19 outbreak
The board of directors of Rupali Bank Limited recently recommended a 5% stock dividend for the year ending December 31, 2019.
However, shareholders of the state-owned bank approved no dividend in its 34th annual general meeting (AGM) held on Thursday, a first since 2010, according to an official disclosure posted by the companies concerned on the Dhaka Stock Exchange website on Sunday.
Seeking anonymity, bank sources said the board of directors of the bank declared a 5% stock dividend on June 28 and sent a proposal to the central bank for regulatory approval. The Bangladesh Bank turned down the proposal considering the bank’s current financial status.
Earlier, in May 2020, the Bangladesh Bank imposed certain conditions on bank dividend declarations to keep the liquidity flow and capital base of banks strong in the wake of the deadly Covid-19 outbreak.
A Bangladesh Bank official said Rupali Bank had a provision shortfall against classified loans and it had an operating cash crisis, which is why the central bank did not approve dividends for the bank.
The overall issue was placed before the 34th AGM for the approval and final decision of shareholders. Shareholders approved ‘no’ dividend, finally.
The Government holds 90.19% stake in the bank, while institutional investors and the general public own 4.79% and 5.02% shares of the company respectively.
(DT)
