B Mirror Desk : The deadline for submitting the bank audit report has been extended to May 31. Bangladesh Bank has relaxed the legal requirements after discussions with the government, allowing banks that have not yet completed their annual audit reports to finalize and submit them by this new date. This notification was issued on Thursday, indicating that banks are exempt from the usual legal obligation during this period.

Typically, banks and financial institutions are required to finalize their audited financial statements within four months or 120 days after the financial year ends, and they must obtain approval from Bangladesh Bank before doing so. Additionally, listed banks must inform investors about their audited financial accounts and dividend declarations within the same timeframe. Historically, most banks have adhered to these regulations, but this year has seen some disruptions.

The annual financial reports of over half of Bangladesh’s private sector banks, as well as state-owned banks, are currently delayed due to compliance issues with Bangladesh Bank regulations. Discussions with the banks revealed that while some have completed their financial reports, they have not received the necessary no objection from Bangladesh Bank.

In some cases, no objection was initially granted but later revoked at the last moment. Consequently, numerous banks convened board meetings to finalize their financial accounts, only to subsequently cancel them. In March, the central bank introduced new policies regarding dividend declarations, stipulating that banks that have utilized the delay facility and failed to maintain safety reserves or proper provisioning will be prohibited from paying dividends in 2024.

This condition has left many banks unable to distribute dividends. Furthermore, banks that underwent ownership and management changes after August 5 have not engaged with Bangladesh Bank concerning various financial metrics, including hidden defaulted loans and security reserves, hindering their ability to finalize financial reports. As a result, Bangladesh Bank has extended the deadline for these banks to finalize their financial reports until May 31 of this month.