The Securities and Exchange Commission (SEC) has recently approved the Janata Bank's proposal to raise its paid up capital to Tk 8.125 billion from the existing Tk 5.0 billion by issuing right shares.
According to the SEC approved proposal, the state-owned Janata Bank will issue 31.25 million right shares of Tk 100 each to its existing shareholders.
Janata Bank submitted its proposal to the SEC to raise its paid-up capital by issuing right shares on July 12, 2011 and the SEC approved the same on September 7, 2011.
A top management of the bank said raising the paid up capital will help the bank widen its activities mainly to make greater contributions to the country's continuous economic growth.
The bank was corporatised on 15th November 2007 with the hope to serve the growing and diversified financial needs for the planned economic development of the country.
"Without necessary financial strength a bank which has its network in both the rural and urban areas cannot expand its activities without higher capital base. This enhancement of capital will help boost the bank's capacity to meet the financial needs of clients engaged in various sectors of the economy and, thus, help them make positive contributions.
According to a condition set by the SEC, the Janata Bank will have to raise the capital through right shares within three months from the date of issuance of the SEC's approval letter. The approval would stand cancelled automatically if the Bank fails to raise the additional capital within the deadline.
The regulatory body asked Janata Bank to conduct all transactions in connection with the right share issuance through its own bank accounts.
The SEC also asked the bank to submit with the Registrar of Joint Stock Company and Firms the certified copy of the Return of Allotments of share, banker certificate and bank statement for the amount of capital to be issued.
According to the SEC requirement, the financial statements shall be prepared in accordance with International Accounting Standard (IAS) and audit thereof shall be conducted in accordance with the International Standards of Auditing (ISA), as adopted by Bangladesh.
It asked the bank company to hold annual general meeting in each Gregorian calendar year.
The SEC asked the bank to furnish detailed list of subscribers along with the subscription amount within seven days from expiry of the subscription time.
The bank has made a net profit of Tk 4.91billion in the year 2010, compared with Tk 2.81 billion profit made in the previous year.
The bank has improved its collection of deposits, loan loss and provisioning, disbursement of industrial and agricultural loans, and CSR-related activities.
The bank collected deposits of Tk 28.65 billion in 2010, which was Tk. 16.63 billion in 2009.
The bank had earlier planned to raise Tk 1.0 billion from the capital market throughinitial public offering (IPO). But the SEC is yet to grant permission in this regard.
According to the SEC approved proposal, the state-owned Janata Bank will issue 31.25 million right shares of Tk 100 each to its existing shareholders.
Janata Bank submitted its proposal to the SEC to raise its paid-up capital by issuing right shares on July 12, 2011 and the SEC approved the same on September 7, 2011.
A top management of the bank said raising the paid up capital will help the bank widen its activities mainly to make greater contributions to the country's continuous economic growth.
The bank was corporatised on 15th November 2007 with the hope to serve the growing and diversified financial needs for the planned economic development of the country.
"Without necessary financial strength a bank which has its network in both the rural and urban areas cannot expand its activities without higher capital base. This enhancement of capital will help boost the bank's capacity to meet the financial needs of clients engaged in various sectors of the economy and, thus, help them make positive contributions.
According to a condition set by the SEC, the Janata Bank will have to raise the capital through right shares within three months from the date of issuance of the SEC's approval letter. The approval would stand cancelled automatically if the Bank fails to raise the additional capital within the deadline.
The regulatory body asked Janata Bank to conduct all transactions in connection with the right share issuance through its own bank accounts.
The SEC also asked the bank to submit with the Registrar of Joint Stock Company and Firms the certified copy of the Return of Allotments of share, banker certificate and bank statement for the amount of capital to be issued.
According to the SEC requirement, the financial statements shall be prepared in accordance with International Accounting Standard (IAS) and audit thereof shall be conducted in accordance with the International Standards of Auditing (ISA), as adopted by Bangladesh.
It asked the bank company to hold annual general meeting in each Gregorian calendar year.
The SEC asked the bank to furnish detailed list of subscribers along with the subscription amount within seven days from expiry of the subscription time.
The bank has made a net profit of Tk 4.91billion in the year 2010, compared with Tk 2.81 billion profit made in the previous year.
The bank has improved its collection of deposits, loan loss and provisioning, disbursement of industrial and agricultural loans, and CSR-related activities.
The bank collected deposits of Tk 28.65 billion in 2010, which was Tk. 16.63 billion in 2009.
The bank had earlier planned to raise Tk 1.0 billion from the capital market throughinitial public offering (IPO). But the SEC is yet to grant permission in this regard.
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