Uttara Bank recommends shareholder dividends of 25%

Uttara Bank Ltd has recommended a 25% dividend (12.5% cash and 12.5% stock) for its shareholders for the 2020 financial year.

A meeting of the bank's board of directors was held online on Thursday amid the novel coronavirus pandemic, in which the dividend payout was recommended.

The bank posted consolidated earnings per share (EPS) of Tk4.27 and solo EPS of Tk3.73 in the last year, which was Tk4.28 and Tk3.73 respectively in the previous year.

Seeking anonymity, a senior official of the bank told The Business Standard, the country's economy is facing a tough time due to the coronavirus pandemic. Banks have strengthened their capital base to combat the economic crisis. This is why the board of the bank recommended a stock dividend for its shareholders.

The annual general meeting (AGM) of the bank will be held on 20 May where the bank's recommended dividend and financial report will be approved. The AGM will be held online and the record date will be 2 May.

Currently, the paid-up capital of the bank is Tk501.94 crore.

Sponsors and directors together had 30.54% shares of Uttara Bank till last February. Institutional investors, foreign investors and general investors owned 22.44%, 0.26%, and 46.76% shares respectively till February 2020.

The last closing price of the bank's shares was Tk24.60 per share on the Dhaka Stock Exchange.