Three banks lost their existing stock exchange category status on Wednesday as the Dhaka and Chittagong stock exchange downgraded them to the 'Z' category for failing to declare dividends for two consecutive years.
Islami Bank Bangladesh PLC, Standard Bank PLC and SBAC Bank PLC were stripped of their respective standings: Islami Bank from 'A' category and the other two from 'B' category, effective Wednesday, in accordance with provision 1(a) of BSEC directive.
Stock brokers and merchant bankers have been directed to refrain from extending loan facilities for the purchase of securities of all three banks with immediate effect, as per rule 11(8) of the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025.
All three boards of directors have recommended no dividend for the year ended December 31, 2025.
Islami Bank reported a consolidated earnings per share (EPS) of Tk 0.85, net asset value (NAV) per share of Tk 44.52 and net operating cash flow per share (NOCFPS) of Tk 26.18 for 2025, against Tk 0.68, Tk 44.36 and Tk 57.90 respectively in 2024. Its AGM is scheduled for June 25, with a record date of May 21.
Standard Bank posted a consolidated EPS of Tk 0.72, NAV per share of Tk 16.94 and NOCFPS of Tk 11.37 for 2025, compared to Tk 0.74, Tk 16.63 and Tk 3.86 (all restated) in 2024. Its AGM will be held on July 30 with a record date of June 3.
SBAC Bank recorded a consolidated EPS of Tk 0.01, NAV per share of Tk 13.61 and NOCFPS of Tk 0.20 for 2025, against Tk 0.14, Tk 13.49 and Tk 7.62 respectively in the previous year. Its AGM is set for June 15 via a hybrid system, with a record date of May 20.
Trading in the shares of all three companies on Wednesday carried no price limit following their corporate declarations, though floor prices remain applicable.
Under BSEC policy, the 'Z' category encompasses companies that have failed to hold their AGM when due, failed to declare any dividend based on annual performance, remained non-operational for more than six months, or whose accumulated losses exceed paid-up capital after adjustment of revenue reserves.