Banks can declare highest 30% dividend

Banks can now declare a maximum of 30% dividend including 15% cash for shareholders after meeting the compliance requirements of the Bangladesh Bank.

The central bank on Sunday issued a circular in this connection saying the policy regulations were declared to intensify the capital structure in the banking sector considering the Covid-19 situation.

It also said, “The banks will have to follow the regulations while declaring dividend for the investors considering their return and banks’ financial capacity.”

The Bangladesh Bank circular said banks can declare highest 30% dividend including 15% cash which can have a minimum 15% or more capital reserve including 2.5% capital conservation buffer against the risk-based wealth.

However, the banks will have to do it without taking any deferral facilities to meet other expenses, including their provision requirements.

And they can declare up to 25% dividend including 12.5 % cash which have can have a minimum 13.5-15% capital reserve including 2.5% capital conservation buffer against the risk-based wealth.

Also, the central bank asked the banks to follow a certain rationale while declaring dividend including cash and stock dividend.