The central bank has once again enforced a stringent policy on dividend distribution, resulting in more than half of the country’s banks being unable to declare dividends for the 2025 financial year. Under the policy, no bank with non-performing loans (NPLs) in double digits has been permitted to distribute dividends. In addition, banks facing capital or provisioning shortfalls have also been barred from doing so.
As a result, only 16 out of 36 listed banks have declared dividends, while across all 52 banks in the country, the number stands at just 18.
Industry insiders note that a regulation titled Guidelines on Dividend Declaration Against Shares, issued on 13 March last year, was aimed at strengthening the financial base of a banking sector under stress. According to the guideline, any bank with NPLs of 10 per cent or higher is ineligible to declare dividends. At present, 29 banks have NPL ratios exceeding 29 per cent, including 17 listed entities. Furthermore, banks with capital and provisioning deficits, or those previously granted extended timelines for provisioning, have also been restricted from issuing dividends.
Despite discussions following a change in the governorship over whether the strict stance might be relaxed, the central bank ultimately maintained its position. Even banks with strong capital bases and record profits have been subject to caps: dividends cannot exceed 30 per cent of paid-up capital or 50 per cent of net profit, whichever is lower.
Under existing regulations, banks are required to finalise their financial statements by 30 April of the following year. All banks met the deadline for the 2025 annual reports, unlike the previous year when an extension had been necessary. On the final day, the central bank granted relief from provisioning requirements against funds stuck in five merged weak banks.
Banks Declaring Dividends
| Bank Name | Dividend (%) |
|---|---|
| BRAC Bank | 30 |
| City Bank | 30 |
| Pubali Bank | 30 |
| Dutch-Bangla Bank | 30 |
| Prime Bank | 30 |
| Uttara Bank | 30 |
| Jamuna Bank | 29 |
| Eastern Bank | 28 |
| NCC Bank | 25 |
| Bank Asia | 17 |
| Shahjalal Islami Bank | 13 |
| Trust Bank | 13 |
| MTB | 12 |
| Southeast Bank | 10 |
| Dhaka Bank | 10 |
| Midland Bank | 6 |
In addition, Community Bank and Bengal Commercial Bank, which are not listed on the stock market, also declared dividends.
Banks Failing to Declare Dividends
Among private banks, those unable to declare dividends include Islami Bank Bangladesh, IFIC Bank, Standard Bank, UCB, Mercantile Bank, AB Bank, Al-Arafah Islami Bank, ICB Islamic Bank, National Bank, NRB Bank, NRBC Bank, ONE Bank, Premier Bank, and South Bangla Agriculture and Commerce Bank.
Several banks—EXIM Bank, First Security Islami Bank, Social Islami Bank, Union Bank, and Global Islami Bank—have been excluded due to mergers and have been deemed non-operational, although their licences remain valid to facilitate foreign transactions through nostro accounts.
Among non-listed banks, Bangladesh Commerce Bank, Meghna Bank, Modhumoti Bank, Padma Bank, and Shimanto Bank also did not declare dividends. Citizens Bank recorded a net profit but chose not to distribute dividends.
State-owned banks, including Rupali, Sonali, Janata, Agrani, BDBL, BASIC Bank, BKB, RAKUB, and Probashi Kallyan Bank, likewise failed to provide dividends to the government.