BSEC rejects Dhaka Bank’s Tk400cr bond proposal

The Bangladesh Securities and Exchange Commission (BSEC) has recently rejected Dhaka Bank's Tk400 crore bond proposal, as stated in the bank's price-sensitive disclosure.

The BSEC in a letter to Dhaka Bank states that the commission is not in a position to approve its bond issuance application. The bank received the letter on Wednesday (2 October).

However, the bank said its board has directed management to appeal to the commission for a review of the matter.

Dhaka Bank's share price fell by 0.84% to close at Tk11.80 on the Dhaka Stock Exchange on the day.

Earlier, it had paid a 10% cash dividend to its shareholders for the year 2023. During the last year, its consolidated net profit decreased slightly to Tk167 crore, compared to the previous year. The earnings per share was Tk1.66 last year.

In the first half of this year, its consolidated earnings per share rose by 15% to Tk1.51 compared to the previous year at the same period.

The bank said in a discloser that earnings per share increased due to an increase in operating income compared to the previous period.

At the end of June this year, its consolidated net asset value per share stood at Tk22.57, up from Tk22.05 a year ago at the same time.

Meanwhile, its consolidated net operating cash flow per share was negative Tk4.05 in the first half of this year, which was Tk29.04 positive in the previous year at the same time, indicating an operational cash flow crisis.

The bank said its net operating cash flow per share decreased due to an increase in the disbursement of loans and advances, purchase of trading securities and decrease in deposits as compared to the previous period.

Dhaka Bank was listed on the stock exchange in 2000. Sponsors and directors hold a 44% stake in the bank, while institutional investors have 15.26% and general investors own 40.74%.