Khondoker Monir Uddin, managing director of STS Group, declared to buy 1.35 crore shares of Dhaka Bank at the prevailing market price in the block market through the Dhaka Stock Exchange (DSE).
According to the DSE source, he has already bought 1.30 crore shares of the bank at Tk13.20 each in the block market on Sunday.
A block trade is a large, privately negotiated securities transaction. Block trades are arranged away from public markets to lessen the effect on the security's price.
Khondoker Monir Uddin, who used to be the chairman of Dhaka Bank, is now one of the directors of its board. He is also the managing director of Shanta Securities, Shanta Holdings, and Shanta Capital Management Limited.
On 31 December last year, he held 2.87% of the bank's total shares, which will increase to 4.29% - the highest among all directors of the bank - after the share transfer.
The Business Standard tried to contact him for comments in this regard but he did not answer the calls.
Meanwhile, Dhaka Bank's share price increased 0.76% to Tk13.10 on Sunday at the DSE compared to the previous trading session.
On 26 April, its board had recommended a 12% cash dividend for 2021. The annual general meeting for the dividend approval will be held on 23 June.
In 2021, its consolidated earnings per share (EPS) stood at Tk2.25, which was Tk2.09 a year ago.
According to the bank's audit report, its classified loan increased 15% year-on-year to Tk714.46 crore, which was 3.32% of its total disbursed loan.
In the first quarter of 2022, lower deposits brought the bank to a negative consolidated net operating cash flow per share of Tk4.36.
However, its consolidated EPS rose by 11% to Tk0.73 during the quarter.