SPCD Circular No. 06: Dividend Declaration Policy for Banks

Bangladesh Bank
Chief Executive Office
Motijheel, Dhaka-1000
Bangladesh
Supervisory Policy and Coordination Department SPCD Circular No. 06 Date: ---------------------

To the Chief Executive/Managing Directors
All Scheduled Banks Operating in Bangladesh

Dear Sir,

Regarding the policy on dividend declaration against shares.

We draw your attention to DOS Circular No. 01 issued on March 13, 2025, and SPCD Circular No. 05 issued on March 15, 2026, on the subject mentioned above.

2. Considering the current situation of the banking sector in the country, the protection of depositors' interests, the financial strength of banks, and the return to shareholders, a policy on dividend distribution was issued through DOS Circular No. 01/2025. Clause 02(k) of the said circular prescribes the mandatory guidelines that banks must strictly comply with for dividend distribution, and Clause 03 provides instructions regarding the limit and maximum ceiling for cash/stock dividend payment based on capital conservation buffers and minimum capital adequacy ratios of banks.

3. In the current global and domestic economic situation, to enhance banks' ability to cope with future risks and to strengthen the capital base of the banking sector, the following instructions are issued regarding the declaration of dividends by banks:

(a) No kind of cash dividend shall be paid if the paid-up capital (Paid-up Capital) of the bank is less than 2,000 (two thousand) crore Taka;

(b) Banks capable of paying cash dividends after fully complying with all instructions may pay cash dividends up to a maximum of 50% of their declared total dividend.

4. These instructions will be applicable for the declaration of dividends for the year ending December 31, 2026, and subsequent years.

5. All instructions of DOS Circular No. 01 issued on March 13, 2025, and other circulars issued in this regard will remain operational as usual.

6. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

Yours faithfully,

(Mohammad Abdur Rob)
Director (SPCD)
Phone: 9530173

23 May 2026
09 Jyestha 1433