Rupali Bank upgraded to B from Z category

The trading category for Rupali Bank's shares has been upgraded to 'B' from the existing 'Z' category, as the lender paid a 5% stock dividend to its shareholders for 2023, effective from tomorrow (5 September).

Category changing decision of the bank has been published today (4 September) on the Dhaka Stock Exchange and Chittagong Stock Exchange. 

The both bourse requested stock brokers and merchant bankers to abstain from providing loan facilities to purchase shares of Rupali Bank PLC.

Earlier in May this year, it was downgraded to the 'Z' category due to its failure to declare dividends for two consecutive years.

The bourses downgraded the bank to the 'Z' category in accordance with a directive from the Bangladesh Securities and Exchange Commission (BSEC) issued on 15 February.

Due to financial complexities, it decided not to pay dividends for 2023 to its shareholders, and it had also not paid any dividends for 2022.

In a disclosure to both bourses on 9 June, the bank announced that, after obtaining permission from Bangladesh Bank, its board decided to pay a 5% stock dividend to its shareholders for 2023, subject to BSEC approval.

Two days after the decision, the BSEC allowed the bank to pay declared dividends. Following shareholder approval at the annual general meeting on 25 August, the bank credited the stock dividends to its shareholders.

With the submission of the compliance report regarding dividend payments, the stock exchanges upgraded the bank's category. According to its financials, the bank's consolidated earnings per share increased to Tk1.35 for the year ending 31 December 2023, up from Tk0.61 in 2022. Additionally, Rupali Bank's share price rose by 2.17% to Tk28.20 each.