The central bank has maintained its strict dividend distribution framework for the 2025 financial year, resulting in more than half of the country’s banking sector being unable to declare dividends. Under the prevailing policy, any bank with non-performing loans (NPLs) in double digits is ineligible to distribute dividends. Restrictions also apply to institutions facing capital shortfalls, provisioning deficits, or other financial weaknesses.
Out of 36 banks listed on the stock exchange, only 16 have declared dividends this year. Across all 52 banks operating in the country, the total number of dividend-paying institutions stands at just 18.
The policy framework, introduced on 13 March last year under the Guidelines on Dividend Declaration Against Shares, was designed to strengthen the financial resilience of the banking sector amid growing stress. It explicitly bars dividend payments from banks with NPL ratios of 10 per cent or above. At present, 29 banks report NPL ratios exceeding 29 per cent, including 17 listed institutions. Banks previously granted additional time to meet provisioning requirements have also been restricted.
Despite speculation following a change in leadership at the central bank regarding a possible easing of the rules, the regulator has retained its stringent stance. Even financially strong banks are subject to caps, limiting dividend payouts to a maximum of 30 per cent of paid-up capital or 50 per cent of net profit, whichever is lower.
All banks were required to finalise their audited financial statements by 30 April 2025, in line with statutory obligations. Unlike the previous year, when an extension was granted due to delays, this year all institutions met the deadline. On the final day, the central bank also provided limited regulatory relief regarding provisioning requirements linked to funds trapped in five merged weak banks.
Banks Declaring Dividends
| Bank | 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 |
| Mutual Trust Bank | 12 |
| Southeast Bank | 10 |
| Dhaka Bank | 10 |
| Midland Bank | 6 |
In addition, Community Bank and Bengal Commercial Bank, both outside the stock exchange listing, also declared dividends.
Banks Not Declaring Dividends
A significant number of private banks were unable to distribute dividends due to regulatory constraints and weak financial indicators. These 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 institutions—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 been declared non-operational, though their licences remain active for specific foreign exchange settlement purposes.
Among non-listed banks, Bangladesh Commerce Bank, Meghna Bank, Modhumoti Bank, Padma Bank, and Shimanto Bank also failed to declare dividends. Citizens Bank recorded a profit but opted not to distribute any dividend.
State-owned commercial 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, similarly did not pay dividends to the government for the period under review.