Earlier, in May 2020, the Bangladesh Bank imposed certain conditions on bank dividend declarations to keep the liquidity flow and capital base of banks strong in the wake of the deadly Covid-19 outbreakThe board of directors of Rupali Bank Limited recently recommended a 5% stock dividend for the year ending December 31, 2019. Seeking anonymity, bank sources said the board of directors of the bank declared a 5% stock dividend on June 28 and sent a proposal to the central bank for regulatory approval. The Bangladesh Bank turned down the proposal considering the bank’s current financial status. Earlier, in May 2020, the Bangladesh Bank imposed certain conditions on bank dividend declarations to keep the liquidity flow and capital base of banks strong in the wake of the deadly Covid-19 outbreak. A Bangladesh Bank official said Rupali Bank had a provision shortfall against classified loans and it had an operating cash crisis, which is why the central bank did not approve dividends for the bank.

Source: Dhaka Tribune September 06, 2020 15:00 UTC