Jamuna Bank Ltd has decided to redeem the bond of Tk200 crore fully by following the trust deed and subject to approval from the regulatory authorities concerned before expiry.
The bank fixed July 28 as the early redemption date.
This bond was issued in 2014 for seven years, and its nature is a coupon bearing subordinated non-convertible redeemable bond.
Mirza Ilias, managing director of the bank, told The Business Standard the bond was issued at a high interest rate in 2014.
"Then we released two other low-interest bonds. That is why we do not need this bond anymore."
He also said, "Of the Tk200 crore, Tk80 crore was paid earlier, and the remaining Tk120 crore will be paid now."
Meanwhile, Jamuna Bank has posted a 34 percent drop in its consolidated net profit in the second quarter that ended on June 30 this year.
The bank's net profit decreased to Tk48.97 crore in this period because of reduced banking hours during the countrywide general holidays in April and May imposed to curb the spread of coronavirus.
Its earnings per share stood at Tk0.65 in this period.
According to its un-audited financial statements, the bank exhibited a 103 percent growth in its net profit in the first quarter of 2020.
In the first half of the current calendar year – from January to June – the bank posted a 23 percent net profit growth, and its consolidated earnings per share stood at Tk2.07.
Jamuna Bank declared a 15 percent cash dividend for its shareholders for last year. However, the final approval of the dividends will come during the annual general meeting slated for August 27 this year.
The bank's paid-up capital is Tk749.22 crore.
As of February this year, sponsors and directors of the bank jointly owned 48.46 percent of shares, institutional investors owned 4.32 percent, foreign investors owned 1.69 percent, and general investors owned 45.53 percent.
The closing price of each of the bank's shares was Tk16.80 on Sunday at the Dhaka Stock Exchange. The shares hit their highest price of Tk19.90 within the last one year.