Three banks, an NBFI get BSEC nod to disburse stock dividends

The Bangladesh Securities and Exchange Commission (BSEC) has approved three banks and a non-bank financial institution (NBFI) to raise capital through the issuance of stock dividends.

The four institutions disclosed the information via the Dhaka Stock Exchange (DSE) today (21 May).

The three banks are BRAC Bank, Midland Bank, and Mutual Trust Bank, while the NBFI is IPDC Finance.

As per regulations, any form of paid-up capital increase requires prior approval from the BSEC. The institutions declared stock dividends to strengthen their capital base, support business growth, and meet the capital adequacy ratios under the Basel III guidelines.

BRAC Bank

The bank's board recommended a 12.50% cash and 12.50% stock dividends to its shareholders for 2024 in a meeting held in April.

To determine the eligible shareholders for the dividend and attending the annual general meeting, the bank has set the record date on 25 May, while shareholders will approve the dividend and the audited financial statement in the annual general meeting which set for 19 June.

In the last year, BRAC Bank reported that its consolidated earnings per share jumped by 62% to Tk6.95, compared to the previous year.

Its share closed 1.51% higher at Tk53.70 on Wednesday.

Midland Bank

The bank has declared a 3% cash and 3% stock dividend to its shareholders for the last year in April.

To approve the dividend and the audited financial statement, it will conduct the annual general meeting on 4 June, and also set the record date on 22 May to determine the eligible shareholders.

In the last year, its consolidated earnings per share were Tk1.27, which was 28% lower than the previous year.

Its share ended 1.24% lower at Tk23.90.

Mutual Trust Bank

The bank has declared only a 10% stock dividend to its shareholders for the last year.

To approve the dividend and the audited financial statement, the bank has set the annual general meeting for 9 July, and the record date is 22 May.

In the last year, the bank has reported that its consolidated earnings per share rose by 11% to Tk3.22.

Its share price jumped by 3.51% to reach Tk11.80 on Wednesday.

IPDC Finance

Earlier in April, the NBFI declared a 5% cash and 5% stock dividend to its shareholders for the last year.

The company has set the new record date on 27 May to determine the eligible shareholders for the stock dividend.

During the last year, its earnings per share were Tk0.93, which was 65% higher than the previous year.

Its share price jumped 2.01% to reach Tk15.20 on Wednesday.