• Monday, Apr 12, 2021
  • Last Update : 10:09 pm

BB restricts NBFIs’ cash dividend to 15%

  • Published at 12:59 am February 25th, 2021
Dividend

NBFIs that availed the BB’s deferred provisioning facility are not allowed to declare any cash dividend

Bangladesh Bank yesterday ordered listed non-bank financial institutions to not give a dividend of more than 15 per cent for the financial year that ended on December 31, 2020, in anticipation of a spike in default loans for the pandemic that can send the institutes into a capital shortfall.

NBFIs that availed the BB’s deferred provisioning facility are not allowed to declare any cash dividend. With prior approval from the central bank, they can declare a 5 per cent stock dividend.

Those with classified loans of more than 10 per cent or a capital adequacy ratio of less than 10 per cent will not be able to pay any dividend without the approval of the central bank. 

Of the 34 banks, 23 are listed with the capital market.

And of the 23, IDLC Finance, the largest NBFI, has announced a 35 per cent cash dividend for the 2020 financial year, which saw the 35-year-old lender log in a record profit of Tk 254.1 crore.

Earlier on February 7, the central bank gave out a laundry list of conditions to banks for announcing dividend for 2020.

52
Facebook 52
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail