State-owned Rupali Bank PLC is set to incur an additional tax liability of around Tk 6.8 million after its board decided not to declare any dividend for shareholders for the 2025 financial year.

As a listed company, Rupali Bank is subject to a tax provision introduced in the 2018-19 national budget, which requires listed firms to distribute at least 30 percent of their profits as dividends. Companies that retain more than 70 percent of their earnings are required to pay an additional 10 percent tax on the retained amount.

According to the bank’s financial results, earnings per share (EPS) for 2025 stood at Tk 0.14, while net profit totaled Tk 68.3 million. Since no dividend has been declared, the entire profit will be transferred to retained earnings, triggering an additional tax of approximately Tk 6.8 million.

The bank faced a similar situation in the previous financial year. In 2024, Rupali Bank reported an EPS of Tk 0.23 and a net profit of Tk 113.9 million, but also refrained from declaring dividends. As a result, it became liable for an additional tax of about Tk 11.4 million.

The bank’s profitability declined significantly in 2025. Net profit fell by 39 percent year-on-year, with EPS dropping from Tk 0.23 in 2024 to Tk 0.14 in 2025.

Listed on the stock market in 1986, Rupali Bank currently has a paid-up capital of Tk 4.88 billion. The government remains the dominant shareholder, holding 90.19 percent of the bank’s shares. Institutional investors own 3.32 percent, while general investors hold the remaining 6.49 percent. On June 3, the bank’s shares closed at Tk 16.60 on the stock exchange.