Home ›› 09 Aug 2022 ›› Stock
State-owned Rupali Bank has declared a 2 per cent cash dividend for 2021 after 36 years in response to the regulatory pressure.
The dividend was approved at its 36th annual general meeting held on August 07, said the bank in a filing with the Dhaka Stock Exchange on Monday.
The bank has never given any cash dividends to its investors since 1986 when it was listed on the stock exchanges.
Frustrated with the bank’s failure in paying the dividend payouts for a long period despite sitting on cash, the Bangladesh Securities and Exchange Commission (BSEC) recently instructed the bank to explain it.
According to the BSEC, the bank increased its paid-up capital by nearly 140 percent over the last decade by issuing stock dividends. The regulator did not approve the 2 per cent stock dividend for the same year which was earlier declared by the board of directors in its 1152nd meeting held on April 28, 2022.
On June 13 this year, the BSEC served a show-cause notice on the bank for not paying any cash dividends since its listing. In response, the bank’s representatives failed to answer. The company will be placed in ‘B’ category from existing ‘A’ category with effect from August 10, 2022 as it has approved 2 per cent cash dividend.
Rupali Bank’s default loans stood at Tk 3,972 crore, including Tk 3,825 crore in bad loans. Its paid-up capital is Tk 455 crore. The nature of bad loans makes it difficult to recover, the BB data showed.
In the first half of 2021, its total operating income was Tk 581.85 crore, up 9 per cent from the same period a year ago.
It’s consolidated earnings per share (EPS) stood at Tk 0.07 for April-June 2022, which was Tk 0.22 in the corresponding period of 2021.
The consolidated net asset value of the company per share was Tk 38.29 as of June 30, 2022, and Tk 37.88 as of December 31, 2021. The bank’s share price fell 2.21 per cent to Tk 26.60 on Monday.
