Dividends of banks and financial institutions are increasing

Sunbd Desk || Published: 2021-03-15 10:22:41 || Updated: 2021-03-15 10:22:41

The limit on dividends paid by the central bank for listed banks and financial institutions is increasing. This was discussed at a meeting of senior officials of Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC) today. The two companies agreed to increase the dividend at a bilateral meeting at the Securities Commission building in the capital’s Agargaon.

Due to the Corona epidemic, Bangladesh Bank last year set a maximum dividend limit of 30 percent for banks. However, the representatives of both the regulatory bodies discussed and agreed to increase the limit of this dividend to 35 percent in today’s meeting. The meeting also decided that the listed financial institutions could pay cash dividends as well as bonus dividends.

In the bilateral meeting, the chairman of the BSEC, Prof. Shibli Rubaiyat-ul-Islam, Commissioner Prof. Sheikh Shamsuddin Ahmed, Executive Director and Spokesperson Mohammad Rezaul Karim and other officials were present. Besides, a three-member delegation led by an Executive Director was present on behalf of Bangladesh Bank.

During the meeting, various issues including BSEC and Bangladesh Bank working together to develop the stock market were discussed. After the meeting, BSEC Executive Director and Spokesperson Mohammad Rezaul Karim confirmed these issues.

He told reporters that a bank listed on the stock exchange will be able to pay a maximum of 30 per cent dividend as per the instructions issued earlier by Bangladesh Bank. Of this, 15 percent was cash and 15 percent ‍stock dividends. However, through today’s discussion, it has been said to increase it by 5 percent to 35 percent. Now Bangladesh Bank will take initiative in this regard. Bangladesh Bank will later clarify the ‍stock or cash dividend of 35 percent.

He added that now listed financial institutions can pay a maximum of 15 per cent cash dividend. However, it has been decided to take initiative so that the financial institutions can pay‍ stock dividend in addition to that 15 percent. However, Bangladesh Bank will clarify this later.

Sunbd/NJ

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