Rupali Bank, the only publicly-listed state-owned commercial bank, will issue ordinary shares valued at Tk15 each, with a Tk5 premium and Tk10 face value, as approved by the finance ministry. This move aims to strengthen the bank’s share money deposits and boost its paid-up capital, potentially increasing the government’s stake. The issuance, subject to Bangladesh Securities and Exchange Commission approval, will see the bank’s paid-up capital set to surpass its current authorized capital of Tk700 crore, with the finance ministry also greenlighting an increase to Tk2,500 crore.
Furthermore, the bank seeks to convert Tk679.99 crore share money deposits into share capital, as per regulatory directives. Rupali Bank’s financials indicate a capital shortfall, prompting initiatives like issuing bonds to bolster its Tier-2 capital base. Despite challenges like non-performing loans, the bank remains profitable, with shares closing at Tk31.70 apiece on the Dhaka Stock Exchange. As of February 2024, the government holds 90.19% shares in the bank.
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