No Need to Distribute Dividends, SBP Advised Banks, DFIs, MFBs

Karachi (A Reporter): State Bank of Pakistan directed Banks, DFIs and Micro Finance Banks to stop distributing dividends.

“With a fiew to conserve capital and further enhance the lending and loss absorption capacity, Banks/DFI/MFB are advised to suspend distribution of profits by way of declaring dividends in any manner (cash or shares) for the quarter ending March 31,2020 and half year ending June 30,2020,” SBP circular stated.

However, State Bank stated clearly that this directives is not applicable on dividend declared for the year

State Bank asked banks, DFIs and MFBs to take up this advice at their respective board meetings]. If board of directors consider it necessary to declare dividend, it may approach SBP with sound justification for consideration of request on merit.

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