Padma Islami Life declares no dividend for 2024
Padma Islami Life reported a deficit of Tk9.26 crore in its life revenue account for the January-March quarter of this year, widening from a Tk7.57 crore deficit in the same period of the previous year
Padma Islami Life Insurance has announced that it will not recommend any dividend for its shareholders for the financial year 2024.
The company has scheduled its annual general meeting (AGM) for 25 September to approve the year's audited financials. The record date for the AGM has been set for 21 August, according to a disclosure on the Dhaka Stock Exchange (DSE).
As per the latest financials, Padma Islami Life reported a deficit of Tk9.26 crore in its life revenue account for the January-March quarter of this year, widening from a Tk7.57 crore deficit in the same period of the previous year.
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As of March 2025, the company's Life Insurance Fund stood at a negative Tk301.18 crore, down from negative Tk261.98 crore a year ago, further underscoring the company's deteriorating financial health.
Yesterday, its share price closed at Tk23.10 on the DSE.
Since being taken over by S Alam Group in 2018, Padma Islami Life has struggled with financial difficulties.
The company's board was reshuffled in October 2018 after 44.78% of its shares were transferred to several S Alam Group concerns, including Pavilion International, Crest Holdings, Unitex LP Gas, Unitex Petroleum, and Affinity Assets.
Prior to the takeover, the company was already under scrutiny for allegations of irregularities and corruption against its previous owners – which was cited as key reasons for its earlier financial distress.
Padma Islami Life was listed on the stock exchanges in 2012 through an initial public offering (IPO) by issuing 1.20 crore shares at a face value of Tk10 each.
Since the S Alam Group's acquisition, it has only declared a 2% cash dividend once, in 2022, and remains in the 'Z' category due to irregular dividend declarations.
As of 30 June, general shareholders hold 49.66% of the company's shares, according to DSE data.
The company's claim settlement performance also remains poor. In the first quarter of 2025, Padma Islami Life paid only 1.68% of its due claims – the lowest in the life insurance sector. Many policyholders have reportedly been left waiting for years to receive their matured policy payments, severely damaging the company's reputation.
