SPCD Circular No. 06: Dividend Declaration Policy for Banks

Bangladesh Bank Main Office Motijheel, Dhaka-1000 Bangladesh www.bb.org.bd Monetary Policy Department Circular Office

Circular No. 06 Date: --------------------- Main Department/Operations Department

All Scheduled Commercial Banks in Bangladesh Dear Sir,

With reference to the subject cited above, this circular is issued to amend Circular No. 01 dated 13 April 2025 and Circular No. 05 dated 15 April 2026.

2. In light of the need to review the dividend declaration policy of banks in Bangladesh, the financial position of depositors, the financial health of banks, and the recommendations of the working group on the dividend policy of banks, a review of the subject matter was conducted under Circular No. 01/2025. Accordingly, amendments have been made to Circular No. 02(K) regarding the criteria for dividend payment, and Circular No. 03 regarding the maximum dividend payout ratio for scheduled commercial banks.

3. To ensure prudent and sustainable financial policies, the following amendments to the dividend declaration policy for scheduled commercial banks are hereby issued: (K) No dividend shall be declared or paid if the bank's paid-up capital is less than BDT 2,000 (Two Thousand Crore); (L) Subject to the overall financial position, scheduled commercial banks may declare and pay a maximum dividend of 50% of their paid-up capital.

4. This policy shall apply to all annual and interim financial statements of scheduled commercial banks from 31 December 2026 onwards.

5. All other circulars issued by the Monetary Policy Department under Circular No. 01 dated 13 April 2025 and this circular shall remain valid.

6. This policy has been issued under Section 45 of the Bangladesh Bank Order, 1991.

Yours faithfully,

(Name) Head (Monetary Policy) Phone: 9530173 23 May 2026 09 Rajab 1433