BSEC approves 4% stock dividend of SBAC Bank
The bonus shares were declared out of profit and retained earnings, not from any reserve
The Bangladesh Securities and Exchange Commission (BSEC) has approved a 4% stock dividend of the South Bangla Agriculture and Commerce (SBAC) Bank Ltd - which was declared by the bank for the year 2020 in order to meet the Basel III requirement.
As a result, the newly listed private sector lender will be able to raise its paid-up capital by Tk31.38 crore from existing.
The BSEC approved the bank's stock dividend in a meeting on Tuesday.
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As per rules, a listed company has to apply to the commission for securing approval of stock dividends before disbursing them.
In 2020, SBAC Bank's consolidated earnings per share slightly decreased to Tk1.39, from Tk1.41 in 2019.
The bank said bonus shares were declared out of profit and retained earnings, not from any reserve.
Earlier, the bank also recommended a 4% cash dividend for that year for its shareholders.
The SBAC Bank was listed on stock exchanges in 2021 and its share trading commenced on 11 August.
As of 31 October this year, sponsors and directors jointly held 73.47%, institutions 13%, and general investors 13.53% of the company shares.
