Islami Bank Bangladesh Limited (IBBL) has reduced cash dividend for its shareholders for the year of 2016 in order to strengthen its capital base.

The news on dividend cuts was met with little enthusiasm by investors on the Dhaka Stock Exchange.

It was learnt that the board of directors declared 10 percent dividend in 2016 as the bank had to mobilise capital of around Tk 1300 crore in 2016, which was almost double than that of the previous year’s amount.

For the additional capital mobilisation, the bank had to buffer capital conservation, mobilise adequate capital against the risky assets and had to fill up the capital deficit for last year’s cash dividend.

Bank sources said they had to manage around Tk 600 crore for capital mobilisation last year which doubled in 2016.

According to IBBL officials, the main focus of the board of director of Islami Bank is to strengthen the capital base of the bank following the Bangladesh Bank direction in line with the Basel-3.

The IBBL board of directors announced 10 percent cash dividend for the shareholders for the year 2016 subject to approval of the 34rd annual general meeting of the bank.

The decision came from a meeting of the board held at Islami Bank Tower on March 30, 2017, with its Chairman Arastoo Khan in the chair.

Islami Bank Bangladesh Limited (IBBL) has reduced cash dividend for its shareholders for the year of 2016 in order to strengthen its capital base.

The news on dividend cuts was met with little enthusiasm by investors on the Dhaka Stock Exchange.

It was learnt that the board of directors declared 10 percent dividend in 2016 as the bank had to mobilise capital of around Tk 1300 crore in 2016, which was almost double than that of the previous year’s amount.

For the additional capital mobilisation, the bank had to buffer capital conservation, mobilise adequate capital against the risky assets and had to fill up the capital deficit for last year’s cash dividend.

Bank sources said they had to manage around Tk 600 crore for capital mobilisation last year which doubled in 2016.

According to IBBL officials, the main focus of the board of director of Islami Bank is to strengthen the capital base of the bank following the Bangladesh Bank direction in line with the Basel-3.

The IBBL board of directors announced 10 percent cash dividend for the shareholders for the year 2016 subject to approval of the 34rd annual general meeting of the bank.

The decision came from a meeting of the board held at Islami Bank Tower on March 30, 2017, with its Chairman Arastoo Khan in the chair.

Directors from home and abroad and Md. Abdul Hamid Miah, managing director of the bank, among others, were present at the meeting.

The meeting approved the profit and loss account and balance sheet for the year 2016 ended on  December 31.

The board also decided to hold the 34rd AGM of the bank on May 23, 2017. The record date for entitlement of dividend has been fixed on April 23, 2017.
In 2005, the bank declared 20 percent cash dividend for its shareholders.

Currently, the sponsor-directors own 61.68 per cent stake in the bank, while institutional investors 5.38 per cent, foreigners 15.15 and the general public 17.79 per cent as on March 31, 2017, the DSE data shows.

Directors from home and abroad and Md. Abdul Hamid Miah, managing director of the bank, among others, were present at the meeting

The meeting approved the profit and loss account and balance sheet for the year 2016 ended on  December 31.

The board also decided to hold the 34rd AGM of the bank on May 23, 2017. The record date for entitlement of dividend has been fixed on April 23, 2017.
In 2005, the bank declared 20 percent cash dividend for its shareholders.

Currently, the sponsor-directors own 61.68 per cent stake in the bank, while institutional investors 5.38 per cent, foreigners 15.15 and the general public 17.79 per cent as on March 31, 2017, the DSE data shows.