The board of the directors of newly listed South Bangla Agriculture & Commerce Bank (SBAC) has recommended 4.0 per cent cash and 4.0 per cent stock dividend for the year ended on December 31, 2020.
This is the first dividend declaration by the bank after listing the country’s stock market last month.
The private commercial bank, which raised Tk 1.0 billion under the fixed price method, made share trading debut on August 11, this year.
The board of the private commercial bank has also decided to form two companies – SBAC Bank Capital Management and SBAC Bank Asset Management.
The decisions were taken at a board meeting held virtually on Tuesday evening, according to a statement.
The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on October 21 at 3:30pm through the digital platform. The record date is set for September 28.
As per the decision, the board has decided to form a merchant banking company named SBAC Bank Capital Management with a paid-up capital of 400 million and authorised capital of Tk 500 million, subject to the approval of regulatory authorities.
The board has also decided to form an Asset Management Company -- SBAC Asset Management with a paid-up capital of 400 million and authorised capital of Tk 500 million, subject to the approval of regulatory authorities.
The bank has also reported consolidated earnings per share (EPS) of Tk 1.39, consolidated net asset value (NAV) per share of Tk 13.59 and consolidated net operating cash flow per share (NOCFPS) of negative Tk 0.42 for the year ended on December 31, 2020, against Tk 1.41, Tk 12.22 and Tk 11.39, respectively for the same period of the previous year.
The bank also informed that it has declared the stock dividend or bonus shares out of profit and retained earnings and not from any reserve. The reason for the declaration of the stock dividend is to meet the Basel III requirement.
The SBAC Bank, which began commercial operations in Bangladesh on February 20, 2013, issued 100 million ordinary shares at face value of Tk 10 each.
There will be no price limit on the trading of the shares of the bank today (Wednesday) following its corporate declaration.
Each share of the bank closed at Tk 22.20 on Tuesday, losing 0.45 per cent over the previous day. Its shares traded between Tk 11 and Tk 28.10 since listing with the DSE on August 11.
The bank’s paid-up capital is Tk 7.84 billion, authorised capital is Tk 10 billion and the total number of securities is 784.64 million.
The sponsor-directors own a 73.48 per cent stake in the bank while the institutional investors own 10.86 per cent and the general public 15.66 per cent as of July 31, 2021, the DSE data shows.