Karachi: The Board of Directors of Bank AL Habib Limited has declared a second interim cash dividend of 35%, which translates to Rs. 3.50 per share of Rs. 10 each, for the fiscal year ending December 31, 2024. This announcement came following their meeting on August 07, 2024.

According to information available from the Pakistan Stock Exchange (PSX), shareholders are required to adjust their records as the share transfer books of the bank will be closed from August 22 to August 26, 2024. All transfer documents received at the office of the Share Registrar, CDC Share Registrar Services Limited in Karachi by the close of business on August 21 will be processed in time for the dividend payment.

The payment of this cash dividend will only be made electronically, as mandated by the Companies (Distribution of Dividends) Regulations, 2017. Shareholders yet to provide their bank account details for electronic transfer must submit the 'E-Dividend Bank Mandate Form', available on the bank's website, by August 21. Failure to provide a correct International Bank Account Number or an invalid CNIC will result in the withholding of the dividend.

The Income Tax Ordinance, 2001 prescribes withholding tax rates of 15% for filers and 30% for non-filers. Shareholders not listed in the Federal Board of Revenue’s Active Taxpayers List, despite being filers, are urged to ensure their compliance before the dividend payment date on September 04, 2024, to benefit from the lower tax rate.

Bank AL Habib also informed that the Central Depository Company of Pakistan has developed a Centralized Cash Dividend Register that details all dividends paid, withheld, and the net amounts credited. Shareholders can access this information by registering on the CDC's eServices Web Portal.

Finally, shareholders with unclaimed dividends or shares are encouraged to contact CDC Share Registrar Services Limited to lodge a claim. Those holding physical share certificates are advised to convert these into book-entry form at the CDC to comply with the Companies Act, 2017 requirements.

This structured payout and tax deduction mechanism underscores the regulatory and legal frameworks guiding corporate dividends, ensuring shareholders meet all prerequisites to receive their entitlements.