Banking stocks suffer despite higher dividends : vimarsana.c

Banking stocks suffer despite higher dividends


Among the 27 listed banks, 10 declared higher dividends, 11 the same, and seven lower.
Pubali Bank Managing Director Md Abdul Halim Chowdhury said the stock market was in a better position last year that positively impacted their profits.
When the market did turn bullish, banks generated higher profits and had to keep a reduced amount in provisioning in the portfolio compared to that a year earlier, he said.
"So, our profits were impacted positively in two ways," he said.
The Bangladesh Bank also ordered banks not to classify loans in 2020. As a result, lenders did not require to set aside a higher amount of funds in provisioning.

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