The central bank has clarified its policy allowing non-banking financial institutions (NBFIs), particularly the ones with strong fundamentals, to declare 30 per cent dividend, including maximum 15 per cent cash, for the shareholders, officials said.
The listed NBFIs are now eligible for declaring the increased dividend instead of only 15 per cent cash earlier, according to a clarification, issued by the Bangladesh Bank (BB), on Monday.
"We've issued the notification to clarify the dividend issue of NBFIs," a BB official told the FE.
The central bank earlier restricted the NBFIs to declare maximum 15 per cent cash dividend in view of the challenges in the aftermath of the Covid-19 pandemic-led wreckage in the economy, he explained.
Earlier on February 24 last, the central bank asked the NBFIs to not give a dividend of more than 15 per cent cash for keeping their capital base stable amid the Covid-19 pandemic.
The central bank did not clear the total dividend issue of the NBFIs through issuing the circular on February 24, according to market operators.
Earlier on February 15 last, the central bank took the decision to issue a clarification on announcing dividend for the NBFIs following a meeting with the Bangladesh Securities and Exchange Commission (BSEC).
The central bank has assured the BSEC at the meeting that they would look into the NBFIs dividend issues.
Of the 35 NBFIs, 23 are listed with the capital market.
Earlier on March 16, the central bank relaxed its policy allowing banks, particularly the ones with strong fundamentals, to declare maximum 35 per cent dividend instead of 30 per cent earlier.
