Chaos-hit NBL offers lowest dividend in history
BI Report || BusinessInsider
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Chaos-hit National Bank offered 5 percent stock dividend for the year ended on December 31, 2020, which is the lowest dividend offered by the bank in decades.
The bank is already burdened with many restrictions imposed by the Bangladesh Bank, including not being allowed to take over any loan of other banks and non-bank financial institutions.
It also has to report to the central bank about its top 20 borrowers on a monthly basis and it has to take approval from the central bank for the appointment of additional managing directors and deputy managing directors.
On May 4, the Bangladesh Bank said that it has made the decision to protect the interests of the depositors who have perked over Tk43,000 crore in the bank as of March this year.
Earlier in mid-June, National Bank made a television commercial to assure its customers regarding the safety of the bank. Nonetheless, its earnings plunged by 11.94 percent in a year.
In a filing with Dhaka Stock Exchange on Monday, the bank reported consolidated earnings per share (EPS) of Tk 1.18 and consolidated net asset value (NAV) per share of Tk 16.92 for the year ended on December 31, 2020, as against Tk 1.34 (restated) and Tk 16.68 respectively for the same period of the previous year.
NBL also informed that the bonus shares have been recommended in view to utilise its retained amount as capital for business expansion.
It said in the filing that bonus share is declared out of accumulated profit and not declared from the capital reserve or revaluation reserve or any unrealised gain or out of profit earned prior to incorporation of the company.
It further said that the bonus share is not declared through reducing the paid-up capital or through doing anything so that the post dividend retained earnings become negative or a debit balance.
The annual general meeting of the bank is scheduled to take place on September 30, 2021 via a digital platform.
Earlier in 2019, National Bank offered 5 percent cash and 5 percent stock dividend to its shareholders.
The adjusted opening price for each of its shares was Tk 8 during Monday’s trade.
