National Bank to issue Tk500cr bond for capital requirement
National Bank Limited – the first private sector bank fully owned by Bangladeshi entrepreneurs – will issue subordinated bonds worth Tk500 crore.
The bank, according to its disclosure on the websites of the bourses on Sunday, will issue the bond to strengthen its regulatory capital and to comply with the Base l-III capital requirement.
The decision is subject to the approval of the regulatory authorities, the bank said in that disclosure.
According to the bank's 2021 financials, its net profit after tax declined 90% to Tk38.15 crore, from Tk384.55 crore a year ago.
Owing to its massive profit decline, the bank did not declare any cash dividend for the year 2021. However, it had paid a 5% stock dividend to its shareholders.
According to its un-audited financials for the January to March quarter of 2022, the bank incurred a loss of Tk56.94 crore.
In the same quarter of the previous year, it made a profit of Tk39.36 crore.
The National Bank was listed on the stock exchanges in 1984.
As of April 2022, sponsors and directors held 28.48%, institutional investors 23.94%, foreign shareholders 0.83%, and general shareholders 46.75% shares of the company.