Posts in category: Uncategorized

Rupali Bank PLC has now decided to pay its shareholders a 5% stock dividend for 2023.

The decision came after its board of directors held a meeting on Saturday (8 June).

A month ago on 2 May, the bank decided not to pay any dividends for 2023 despite a 121% growth in its earnings per share (EPS) to Tk1.35 for 2023.

In 2022, the bank also did not pay dividends to its shareholders.

Owing to the failure to pay or declare dividends for its shareholders, the Dhaka Stock Exchange (DSE) downgraded the bank to the Z category from the B category on 2 May.

In price-sensitive information (PSI) on Saturday, the bank said the board of directors reviewed the earlier declared dividend, and the board declared a 5% stock dividend for 2023, which is subject to the approval of the Bangladesh Securities and Exchange Commission (BSEC).

Infographics: TBS

The country’s leading mobile financial service (MFS) provider bKash has generated Tk70 crore in profit in the first quarter, marking 95% year-on-year growth.

The steady increase in profits can be attributed to the fintech company’s strategic expansion of services, enhanced user experience, and a growing customer base, according to its officials.

They added that it has successfully leveraged technological innovations to streamline operations and offer a diverse range of financial products, from mobile payments to micro-savings and loans.

Moinuddin Mohammed Rahgir, chief financial officer (CFO) of bKash, told The Business Standard, “During the early stages, customer-centric fintech companies like bKash with a sustainable business model needed patient capital and a growth mindset. It was a prerequisite to invest in the expansion of technological capabilities, infrastructure, digital literacy, and awareness.”

“bKash remains a textbook example of a company pursuing growth, including the expansion of its service platform, customer acquisition, and maintaining its agent network. Now, steady returns on those investments are bringing revenue growth,” he added.

In the January-March quarter of 2024, the company’s operating profit also jumped over 500% to reach Tk76.22 crore. Besides, its revenue grew by 24%, reaching Tk1,214 crore, compared to the equivalent period of last year.

Meanwhile, the robust growth in profit helped bKash – also a subsidiary of BRAC Bank – offset the accumulated loss after four years, posting Tk15.78 crore as retained earnings in the March quarter.

The financial service provider had been profitable until 2018 since its inception in 2011, but it suffered significant losses between 2019 and 2021.

BRAC Bank holds 51% shares of bKash, while Money in Motion LLC of the US owns 16.45%, Alipay Singapore E-Commerce 14.87%, International Finance Corporation 10.36%, and SVF II BEAM (DE) LLC 7.32% shares.

Mir Akhter Hossain Limited has won a contract to dredge the Old Brahmaputra River from the Bangladesh Inland Water Transport Authority (BIWTA).

The construction company disclosed this through the Dhaka Stock Exchange (DSE) today.

According to the company’s statement, a joint venture between Mir Akhter and Confidence Infrastructure Limited obtained the dredging work under a BIWTA project for the improvement and restoration of navigability for the Old Brahmaputra, Dharala, Tulai, and Punarbhaba rivers.

Mir Akhter holds a 51% stake in the joint venture.

The total value of this project is Tk82.67 crore, with a project duration of 32 months.

Following this news, Mir Akhter shares rose by 1.94% to close at Tk36.70 yesterday at the DSE.

Mir Akhter has 33 projects worth Tk9,268 crore in hand, according to the company’s annual report for the fiscal year 2022-23.

Some of the notable projects currently underway include the Dhaka-Sylhet national highway, the development of Shah Amanat International Airport, the construction of a bridge over the Paira River, and numerous road projects across the country.

In its FY23 annual report, the company stated that the construction sector is benefiting from an increase in capital allocation from the government’s annual development budget. In April, Mir Akhter called an extraordinary general meeting on 25 June to secure shareholders’ approval for issuing a bond worth Tk300 crore.

Meanwhile, Mir Akhter reported that its revenue fell by 14% to Tk166.87 crore in July-March of the fiscal year 2023-24.

During this period, its net profit rose by 20% to Tk18 crore compared to the same period a year ago.

State owned Rupali Bank’s net profit jumped by 29% in the January-March of this year compared to the previous year, according to the bank’s financial statement disclosed today (1 June).

During the first quarter of 2024, its earnings per share was Tk0.49, which was Tk0.38 at the same time a year ago.

At the end of March, its net asset value per share stood at Tk36.07.

On Thursday, Rupali Bank shares closed 1.20% higher at Tk25.20 on the Dhaka Stock Exchange (DSE).

Earlier, in May, Rupali Bank was downgraded to the Z category in Dhaka bourse, as it failed to declare any dividends for two consecutive years.

The DSE downgraded the bank from its existing B category in line with the directive of the Bangladesh Securities and Exchange Commission issued on 15 February.

The bank decided not to pay any dividend to its shareholders for 2022 and 2023.

However, according to its financials, its consolidated earnings per share increased to Tk1.35 at the end of 31 December 2023, which was Tk0.61 in 2022.

In March, Rupali Bank received approval from the finance ministry to issue ordinary shares, against the share money deposits of Tk700 crore.

As per finance ministry officials, the issuance of ordinary shares priced at Tk15 each, comprising a Tk5 premium and Tk10 face value, has been approved.

The shares issuance is subject to approval of the Bangladesh Securities and Exchange Commission.