The defaulted loans are increasing. Provisions are not kept properly. The level of risk in the banking sector is increasing. Banks listed in the capital market have announced dividends for the year 2023 amid such criticism. The dividend rate of seven banks increased compared to the previous year. on the contrary Six banks saw their dividend cut. Dividends of the rest of the banks remained unchanged. As such, it can be said that banks have declared dividends to protect continuity.
Of the six banks that saw dividend cuts, three increased their cash dividends from the previous year. And two have cash dividends equal to the previous year. As such, the amount of cash dividend of these banks has not decreased, the bonus dividend has decreased. However, the cash dividend of a bank has decreased compared to the previous year.
In the current situation, the shareholders of the stock market are giving the opinion that the dividends announced by the banks are satisfactory and promising for the investors. They say that the dividends declared by the listed banks are quite satisfactory. Some banks have dividend yields above 15 percent. It is very suitable for investment. But our stock market investors do not invest with the expectation of dividends. That is why even after declaring a good dividend, it does not have much effect on the share price of the bank.
Among the listed banks, Dutch-Bangla Bank has given the highest dividend this time. The company has announced 17.5 percent cash and 17.5 percent bonus share dividend for 2023. Last year the bank paid 17.5 percent cash and 7.5 percent bonus share dividend.
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The bank’s dividend has not only increased compared to last year. The bank has declared the highest dividend in the last five years. In 2021, Dutch-Bangla Bank paid 17.5 percent cash and 10 percent bonus share dividends to investors. Before that, it paid 15 percent cash and 15 percent bonus shares in 2020 and 15 percent cash and 10 percent bonus shares in 2019.
Uttara Bank is second in the list of highest dividend. This company has also declared the highest dividend in the last five years. The bank has announced 17.5 percent cash and 12.5 percent bonus share dividend for 2023. Earlier it paid 14 percent cash and 14 percent bonus shares in 2022 and 2021, 12.5 percent cash and 12.5 percent bonus shares in 2020 and 7 percent cash and 23 percent bonus shares in 2019.
dividendincreasethe restBanksfiveof the yearimage
Bank Name
dividend
২০২৩
২০২২
২০২১
২০২০
২০১৯
BRAC Bank
10% cash and 10% bonus
7.5% cash and 7.5% bonus
7.5% cash and 7.5% bonus
10% cash and 5% bonus
7.5% cash and 7.5% bonus
City Bank
15% cash and 10% bonus
10% cash and 2% bonus
12.5% cash and 12.5% bonus
17.5% cash and 5% bonus
15% cash
NCC Bank
12% cash
5% cash and 5% bonus
12% cash and 4% bonus
7.5% cash and 7.5% bonus
15% cash and 2% bonus
Onebank
3.5% cash and 3.5% bonus
5% bonus
5% bonus
6% cash and 5.5% bonus
5% cash and 5% bonus
Pubali Bank
12.5% cash and 12.5% bonus
12.5% cash
12.5% cash
12.5% cash
10% cash
Meanwhile, ICB Islami Bank, which is in trouble, has decided not to give any kind of dividend to the investors. It is on the list of not paying dividends National Bank in trouble again. State-owned Rupali Bank also decided not to pay dividends to investors.
Rupali Bank has not paid any dividend to the investors in 2022 as well. Earlier it paid 2 percent cash dividend in 2021 and 10 percent in 2020. National Bank did not pay any dividend to investors in 2022 and 2021. Before that 5 percent bonus shares in 2020 and 5 percent cash and 5 percent bonus shares in 2019. And the information regarding the last time ICB Islami Bank paid dividend was not available.
Mercantile Bank, NRBC Bank, Premier Bank, Dhaka Bank, South Bengal Agriculture Bank and Shahjalal Islami Bank are among the list of dividend cut compared to previous year. Meanwhile, the amount of cash dividend of South Bengal Agriculture Bank has decreased compared to last year. On the contrary, the amount of total dividend has decreased but the amount of cash dividend of NRBC, Dhaka and Shahjalal Islami Bank has increased compared to last year. The amount of cash dividend of the remaining two banks remains unchanged।
dividendcommaBanksimage
Bank Name
dividend
২০২৩
২০২২
২০২১
২০২০
২০১৯
Mercantile Bank
10% cash
10% cash and 2% bonus
12.5% cash and 5% bonus
10% cash and 5% bonus
11% cash and 5% bonus
NRBC
11% cash
7.5% cash and 4.5% bonus
7.5% cash and 7.5% bonus
7.5% cash and 5% bonus
Premier Bank
12.50% cash
12.5% cash and 7.5% bonus
12.5% cash and 10% bonus
12.5% cash and 7.5% bonus
5% cash and 5% bonus
Dhaka Bank
10% cash
6% cash and 6% bonus
12% cash
6% cash and 6% bonus
5% cash and 5% bonus
South Bengal Agriculture Bank
2% cash
3.5% cash
3% cash and 1% bonus
4% cash and 4% bonus
Shahjalal Islami Bank
14% cash
12% cash and 3% bonus
10% cash and 5% bonus
7% cash and 5% bonus
5% cash and 5% bonus
Among the banks that kept dividend rates unchanged, AB Bank announced a 2 percent bonus share dividend for 2023 as well as the previous year. Al-Arafah Islami Bank declared 10 percent cash and 5 percent bonus share dividend. Last year the bank paid 12 percent cash and 3 percent bonus share dividend. Before that, the company paid 15 percent cash dividend in 2021 and 2020. In 2019, the bank paid 13 percent cash dividend.
Bank Asia is giving 15 percent cash dividend this year like last year. In 2021 also, the bank pays 15 percent cash dividend. Before that, the company paid 10 percent cash dividend in 2020 and 2019. Eastern Bank has given 12.5 percent cash dividend and 12.5 percent bonus share dividend in 2023 as in 2022. The company pays the same dividend in 2021 as well. Before that, 17.5 percent cash and 17.5 percent bonus in 2020 and 15 percent cash dividend in 2019.
NRB Bank, listed on the stock market this year, has decided to pay 10 percent cash dividend to investors. Midland Bank, which will list in 2023, has announced a cash dividend of 5 per cent this year as in the previous year. Global Islami Bank, which listed in 2022, has declared 5 percent cash and 5 percent bonus share dividend in continuation of the previous year. Union Bank, another company listed in 2022, has also announced 5 percent cash dividend in continuation of the previous year.
dividendunchangedto stayBanksimage
Bank Name
dividend
২০২৩
২০২২
২০২১
২০২০
২০১৯
Exim Bank
10% cash
10% cash
10% cash
7.5% cash and 2.5% bonus
10% cash
First Security Islami Bank
5% cash and 5% bonus
10% bonus
5% cash and 5% bonus
5% cash and 5% bonus
10% bonus
IFIC
5% bonus
2.5% cash and 2.5% bonus
5% bonus
5% bonus
10% bonus
Islamic Bank
10% cash
10% cash
10% cash
10% cash
10% cash
Jamuna Bank
17.5% cash and 8.50% bonus
17.5% cash and 8.5% bonus
17.5% cash
17.5% cash
15% cash
Mutual Trust Bank
10% cash
10% bonus
10% bonus
10% bonus
5% cash and 5% bonus
Prime Bank
17.50% cash
17.5% cash
17.5% cash
15% cash
13.5% cash
Social Islami Bank
5% cash and 5% bonus
5% cash and 5% bonus
5% cash and 5% bonus
5% cash and 5% bonus
5% cash and 5% bonus
Southeast Bank
6% cash and 4% bonus
6% cash and 4% bonus
8% cash and 4% bonus
10% cash
7.5% cash and 2.5% bonus
Standard Bank
2.5% cash and 2.5% bonus
2.5% cash and 2.5% bonus
3% cash and 3% bonus
2.5% cash and 2.5% bonus
5% cash and 5% bonus
Trust Bank
12% cash and 8% bonus
10% cash and 10% bonus
12.5% cash and 10% bonus
10% cash and 10% bonus
5% cash and 5% bonus
UCB
5% cash and 5% bonus
5% cash and 5% bonus
10% bonus
5% cash and 5% bonus
5% cash and 5% bonus
Meanwhile, at the end of December 2023, the amount of defaulted loans in the country’s bank sector stood at 1 lakh 45 thousand 633 crores. At the end of December 2022 which was 1 lakh 20 thousand 656 crores. Accordingly, the defaulted loans have increased by about 25 thousand crores within a year.
When asked to comment on the dividends of the listed banks while defaulting loans are increasing, former chairman of Bangladesh Securities and Exchange Commission (BSEC) Farooq Ahmed Siddiqui told Jago News that some banks are paying good dividends. There is some crisis in the banking sector. The biggest doubt is whether they make the provision properly or not. Banks that are good, they are doing well.
In the current situation Can the dividend of the banking sector be called satisfactory or not? When asked such a question, he said, roughly. I think bank defaults are too high. There will be a problem to fix this defaulted loan. Bank defaulted loans look like 1 lakh 40 thousand crore rupees, the actual defaulted loans are more than double. It is common people’s idea.
On the other hand, the former president of Bangladesh Merchant Bankers Association (BMBA) Chaedur Rahman told Jago News that our investors do not buy bank shares. Due to which the shares of the bank remain almost at the same place. In terms of dividend, the bank’s dividend is very good. We don’t have long-term investors here, nobody invests for dividends. Dividend yield (return) of many banks is higher than FDR rate.
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He said, we have a bad culture here, everyone wants quick capital gain. Due to which people run after rotten shares. No matter how bad the banks are, Banks’ dividend decision comes only after Bangladesh Bank monitors it. That means dividends are allowed because of their ability.
DSE Brokers Association of Bangladesh (DBA) president Saiful Islam told Jago News that some banks give very good dividends. That is certainly promising. Some banks couldn’t pay, I think they couldn’t pay because of their provision. If the bank’s governance is good, the bank will be good.
He said, among the banks that gave low dividend rate, the amount of cash dividend has not decreased. That’s a good thing. There is not much difference between giving bonus shares or not. The reason is that if the bonus is given, the money remains in the balance sheet, but if not, it remains in the balance sheet. Cash is distributed. If the cash is good or good, then it should be understood that the health of the company is good. If cash is not available, then cash dividend cannot be paid. We can see the bank’s dividend from that point of view.
