Over Half of Banks Barred from Dividends

The central bank has continued its strict stance on dividend distribution for the 2025 financial year, under which more than half of the country’s banks have been barred from paying dividends. The policy prohibits dividend declarations by any bank whose non-performing loans are in double digits, and also restricts institutions with capital shortfalls or provisioning deficiencies.

As a result, only 16 of the 36 listed banks have declared dividends this year. Across the wider banking sector of 52 institutions, just 18 banks have been able to distribute dividends to shareholders.

The framework governing dividend distribution was introduced on 13 March last year through the Guidelines on Dividend Declaration Against Shares. It was designed to strengthen the banking sector’s financial stability amid rising stress in asset quality. Under the guideline, banks with non-performing loan ratios of 10 per cent or more are ineligible for dividend payments. At present, 29 banks report non-performing loan ratios exceeding 29 per cent, including 17 listed banks.

Banks that were previously granted additional time to meet provisioning requirements have also been restricted from distributing dividends. Despite earlier market expectations that regulatory leadership changes might soften the policy, the central bank has maintained its strict approach.

Even financially strong banks are subject to payout restrictions. Dividends cannot exceed 30 per cent of paid-up capital or 50 per cent of net profit, whichever is lower. This cap applies irrespective of profitability levels.

All banks were required to finalise their financial statements by 30 April 2025, in line with statutory deadlines. Unlike the previous year, when an extension was granted due to delays in reporting, all banks completed their accounts within the stipulated time this year. On the final day of reporting, the central bank also provided limited relief regarding provisioning requirements related to funds locked in five merged weak banks.

Dividend-Declaring Banks (2025)

Community Bank and Bengal Commercial Bank, both outside stock exchange listing, also declared dividends this year.

Banks Unable to Declare Dividends

A large number of private commercial banks were unable to declare dividends due to weak asset quality and regulatory restrictions. These include Islami Bank Bangladesh, IFIC Bank, Standard Bank, United Commercial Bank, 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.

Five banks—EXIM Bank, First Security Islami Bank, Social Islami Bank, Union Bank, and Global Islami Bank—have been removed from the stock market following mergers and have effectively ceased operations as independent entities, though their licences remain valid for limited foreign exchange settlement purposes, including maintenance of nostro accounts.

Among non-listed private banks, Bangladesh Commerce Bank, Meghna Bank, Modhumoti Bank, Padma Bank, and Shimanto Bank also did not distribute dividends. Citizens Bank, despite recording net profit, did not declare any dividend for the year.

State-owned banks, including Rupali Bank, Sonali Bank, Janata Bank, Agrani Bank, Bangladesh Development Bank Limited, BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, and Probashi Kallyan Bank, likewise did not pay dividends to the government during the period under review.