Banks can now declare a maximum of 30 percent dividend including 15 percent cash for shareholders after meeting the compliance requirements of Bangladesh Bank.
The central bank today issued a circular in this connection saying the policy regulations were declared to intensify the capital structure in the banking sector considering the ongoing Covid-19 situation.
“The banks will have to follow the regulations while declaring dividend for the investors considering their return and banks’ financial capacity,” Bangladesh Bank also said in the circular.
The central bank’s circular said banks can declare highest 30 percent dividend including 15 percent cash which can have a minimum 15 percent or more capital reserve including 2.5 percent 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 percent dividend including 12.5 percent cash which have can have a minimum 13.5-15 percent capital reserve including 2.5 percent 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.