Dhaka, Bangladesh (BBN) – The board of directors of Pubali Bank Ltd has decided to issue 7 years’ subordinated bond worth BDT 5.0 billion, said an official disclosure on Wednesday.
The bank will issue the bond for raising fund to meet capital requirement under Basel III framework and to strengthen the regulatory capital base of the bank.
The bond issue is subject to approval of Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) and other regulatory authorities, said the disclosure.
The Pubali Bank was listed on the Dhaka bourse in 1984. The bank belongs to the “A” category.
Sponsor-directors own 28.87 percent stake in the Bank, while institutional investors own 24.08 percent, foreign investors 1.06 percent and the general public 45.99 percent as on March 31, 2017.
The bank’s paid-up capital is BDT 8.80 billion and authorised capital is BDT 20 billion, while total number of securities is 880.37 million, according to statistics from the DSE.
The bank’s share price closed at BDT 23.10 on Tuesday at Dhaka Stock Exchange (DSE).
The board of directors has recommended 5.0 percent cash and 8.0 percent stock dividend for the year ended on December 31, 2016.
The final approval will come during the annual general meeting scheduled to be held on April 27 at 10:30am at the bank’s auditorium in Fhaka.
The Bank was initially emerged in the Banking scenario of the then East Pakistan as Eastern Mercantile Bank at the initiative of some Bangalee entrepreneurs in the year 1959 under Bank Companies Act 1913 for providing credit to the Bangalee entrepreneurs.
After independence of Bangladesh in 1972 this Bank was nationalized as per policy of the Government and renamed as Pubali Bank.
Subsequently due to changed circumstances this Bank was denationalised in the year 1983 as a private bank and renamed as Pubali Bank.
Since inception this Bank has been playing a vital role in socio-economic, industrial and agricultural development as well as in the overall economic development of the country through savings mobilization and investment of funds.
At Present, Pubali Bank is the largest private commercial bank having 445 branches and it has the largest real time centralized online banking network.
Pubali Bank limited has achieved constantly about 20 percent growth for the last six years.