Mercantile Bank is going to buy a commercial space in Noakhali from its Chairman Morshed Alam – also a parliament member from that area and chairman of Bengal Group – for Tk8.15 crore.
An official at the private sector lender, on the condition of anonymity, said it has good business at Chowmuhani as it is the commercial hub of the country's southeastern district.
"Now it wants to shift the branch to its own space. As the chairman has a commercial building in that location, the bank prefers to buy the floor from him," he added.
According to its stock exchange filings, the bank will buy 4,929 square feet with two car parking spaces on the second floor of Morshed Alam Complex in Begumganj Upazila.
A source at the bank said Morshed Alam owns the complex.
The bank's board of directors approved the decision to purchase floor space at a meeting on Monday evening.
Its implementation is subject to the Bangladesh Bank's approval, said the bank statement.
Meanwhile, Mercantile Bank also published its financial report for the first half of 2022.
During the January-June period, its consolidated net profit grew 15% year-on-year to Tk240 crore and the earnings per share were Tk2.22.
The bank achieved the growth thanks to a significant income from a record rise in its foreign currency dealings to settle export-import bills, also known as letters of credit (LCs).
On Tuesday, its shares traded at Tk13.70 each on the Dhaka Stock Exchange.