Bangladesh Bank Restores 4% Dividend for Depositors

Bangladesh Bank has announced a significant policy revision, reinstating the annual 4% dividend for depositors of five banks currently undergoing consolidation. Previously, dividends for the years 2024 and 2025 had been suspended, a move that sparked widespread concern among depositors.

On Tuesday, the central bank issued updated instructions to the management teams of the affected banks. The earlier suspension was implemented to support the structural consolidation process, during which banks were required to comply with regulatory standards and prudential norms. However, following strong reactions from depositors, the central bank reconsidered its stance and revised the directive.

According to a circular issued by the Bank’s Supervision Department, the prior suspension—which primarily applied to Islamic banking institutions undergoing corporate restructuring—has now been lifted. The revision aims to address depositors’ concerns while ensuring that banking operations continue smoothly during the ongoing consolidation process.

Under the new policy, all eligible individual (non-institutional) deposits will receive an annual 4% dividend from 1 January 2024 to 28 December 2025. Banks are required to recalculate dividends at the end of 2025 and submit the revised statements to Bangladesh Bank within three working days.

Depositors who have previously received dividends exceeding 4% will see the excess adjusted against future dividend payments. Deposits not covered under the new policy will continue to be governed by existing rules. The move has been positively received by depositors, and financial analysts consider it crucial for maintaining public confidence and facilitating a smoother consolidation process.

Summary of Bangladesh Bank Dividend Policy for Consolidating Banks

Analysts suggest that this revision demonstrates the central bank’s responsible governance and will play a pivotal role in restoring public trust. Furthermore, it is expected to facilitate a more orderly and efficient completion of the ongoing consolidation, allowing banks to maintain operational stability while meeting regulatory obligations.