Bay Leasing to pay 10% dividends

Bay Leasing and Investment has recommended 7.50 percent cash and 2.50 percent stock dividends for the 2019 financial year.

The consolidated earnings per share (EPS) of the non-bank financial institution were Tk1.09, which was 32 percent lower than the previous year.

It reported a low profit in the last financial year due to a shaky money market and the underperformance of its subsidiaries.

"This happened because there was instability in the money market over interest rates," an official of the company told The Business Standard.

"Additionally, some non-bank financial institutions such as People's Leasing plunged into big trouble. They did not even pay deposits back to their clients. For that reason, investors lost their confidence in financial institutions," he added.

The annual general meeting of Bay Leasing has been scheduled for October 29 where the company's recommended dividend and financial report will be approved.

September 17 has been set as the date of record.

Meanwhile, the consolidated net asset value per share of the company stood at Tk19.80 in the last financial year that ended on December 31, 2019.

Its consolidated net operating cash flow per share was Tk0.70 in that year.

The company was listed on the Dhaka Stock Exchange (DSE) in 2009 and its paid-up capital is Tk137.45 crore.

Meanwhile, the company's sponsors and directors have failed to hold a minimum 30 percent of shares jointly.

The sponsors and directors jointly had a 29.64 percent stake in the company till July 31.

Last month the stock market regulator gave an ultimatum to the company to overcome the irregularities within the following 60 days.

At the end of July 31, institutional investors held 37.26 percent, foreign investors 0.34 percent and general investors 32.76 percent shares of the company.

On Wednesday, the closing price of the company's shares was Tk14.50 each at the DSE.