The board of directors of Al-Arafah Islami Bank Limited has recommended 15 per cent cash and 5.0 per cent stock dividend for the year ended on December 31, 2017, said an official disclosure on Tuesday.
The final approval of the dividend will come during the Annual General Meeting (AGM) scheduled to be held on May 24 in the capital city. The record date for entitlement of dividend is on May 3.
The board has also decided to issue a Mudaraba Subordinated Bond work Tk 5.0 billion named “AIBL 2nd Mudaraba Bond’ for seven years redeemable through private placement to strengthen bank’s tier 2 capital as requirement Basel 3.
The bank has also reported consolidated earnings per share (EPS) of Tk 3.15, consolidated net asset value (NAV) per share of Tk 20.87 and consolidated net operating cash flow per share (NOCFPS) of Tk 10.40 for the year ended on December 31, 2017 as against Tk 3.07, Tk 19.72 and Tk 11.18 in the year ended on December 31, 2106.
In 2016, the company also disbursed 20 per cent cash dividend.
There will be no price limit on the trading of the shares of the bank today (Tuesday) following its corporate declaration.
Each share of the bank, which was listed on the Dhaka bourse in 1998 closed at Tk 23.50 on Monday at the Dhaka Stock Exchange (DSE), remaining unchanged over the previous day.
The bank’s paid-up capital is Tk 9.94 billion and authorised capital is Tk 15 billion while the total number of securities is 994.30 million.
The sponsor-directors own 41.63 per cent stake in the bank, while the institutional investors 13.91 per cent, foreign 3.08 per cent and the general public 41.38 per cent as on February 28, 2018, the DSE data shows.
