In a significant policy reversal, Bangladesh Bank has announced that depositors of five banks currently undergoing a consolidation process will receive an annual dividend of 4 per cent for the years 2024 and 2025. This decision overturns a previous directive that had suspended dividends for the same period, a move that had generated considerable dissatisfaction among depositors.
The central bank formally communicated the updated instructions to the management teams of the affected banks on Wednesday. Earlier, the suspension of fixed-term deposit dividends was justified by structural integration requirements within the banks, aimed at meeting regulatory obligations during the consolidation process.
However, following strong opposition from depositors, the central bank reconsidered its stance. A circular issued by the Bank Supervision Department clarified that the earlier suspension—originally implemented under Islamic banking corporate formation and expansion regulations—has now been withdrawn. The revision seeks to address depositor concerns while ensuring that normal banking operations continue smoothly throughout the consolidation period.
Under the revised policy, all eligible individual (non-institutional) deposits will earn a 4 per cent annual dividend from 1 January 2024 through 28 December 2025. Banks are required to recalculate deposit earnings based on the revised rate at the close of business in 2025 and submit the adjusted statements to Bangladesh Bank within three working days.
Guidance has also been provided for depositors who had previously received dividends exceeding the new 4 per cent rate. Any excess payments will be offset against future dividends. Deposits not covered by the new policy will continue to be governed by existing rules.
The policy adjustment has been widely welcomed by depositors and financial analysts, who note that such measures can help maintain depositor confidence and stabilise financial operations during complex consolidation efforts.
Summary of Bangladesh Bank’s Dividend Policy
| Parameter | Details |
|---|---|
| Applicable Banks | Five banks under consolidation |
| Duration | 1 January 2024 – 28 December 2025 |
| Eligible Deposits | Individual (non-institutional) deposits |
| Annual Dividend Rate | 4% per annum |
| Recalculation Instruction | End of 2025; adjusted statements to be submitted within 3 working days |
| Adjustment of Excess Dividend | Excess dividend to be offset against future dividends |
| Previous Directives | Deposits not covered by new policy follow previous regulations |
This policy change demonstrates Bangladesh Bank’s responsiveness to depositor concerns and its commitment to maintaining financial stability while adhering to regulatory requirements during bank consolidation. Analysts suggest that restoring dividend payouts is likely to reinforce public trust and support smoother integration of the banks involved.