10 More Banks Degraded to 'Z' Category in Stock Market
Representational Image. Agamir Somoy.
Bangladesh Securities and Exchange Commission (BSEC) has demoted 10 more listed banks from 'A' and 'B' categories to the 'Z' ones because of their meager situations. The 'Z' category is the lowest tier in the stock market, where companies are generally classified as weak or junk stocks.
The Dhaka Stock Exchange (DSE) officially announced the reclassification of these 10 banks on its website on Sunday.
The banks are: AB Bank PLC, Al-Arafah Islami Bank PLC, IFIC Bank PLC, Mercantile Bank PLC, NRB Bank PLC, NRBC Bank PLC, One Bank PLC, Premier Bank PLC, Rupali Bank PLC, and United Commercial Bank (UCB) PLC.
According to the DSE, the decision was made because these banks failed to provide dividends to investors for two consecutive years. As a result of the demotion to the 'Z' category, no credit or margin loan facilities will be available for purchasing the shares of these banks, effective from today.
Earlier, on Thursday (April 30), Islami Bank PLC, Standard Bank PLC, and South Bangla Agriculture Bank PLC were also moved to the 'Z' category for the same reasons. Loan facilities for purchasing shares of those banks have also been suspended.