Jamuna Bank recorded an 18 percent rise in profit last year and announced plans to strengthen its capital base by issuing a Tk 1,000 crore bond.

The private commercial bank reported a profit of Tk 279.59 crore for 2024.

Its consolidated earnings per share climbed to Tk 3.17 last year, up from Tk 2.68 a year earlier, according to a disclosure filed with the Dhaka Stock Exchange (DSE) yesterday.

Despite the rise in profit, the bank's shares slipped 2.56 percent on the DSE, closing at Tk 19.

Its net operating cash flow per share (NOCFPS), however, fell to Tk 14.31 in 2024, down from Tk 17.68 in 2023.

The board has proposed a 17.5 percent cash dividend, unchanged from the year before. It also recommended a 6.5 percent stock dividend, which is lower than the 8.5 percent declared in 2023.

According to the bank, the retained portion of the stock dividend will be used to reinforce its capital position, supporting business expansion and improving its regulatory ratios.

In a separate filing to the DSE, Jamuna Bank said its board had approved a plan to raise Tk 1,000 crore through a subordinated bond, to be issued via private placement.

The proceeds would help enhance its capital adequacy in line with the Basel III requirements -- a global standard introduced in the wake of the 2007–09 financial crisis.

A subordinated bond, sometimes called a subordinated debenture, is a form of debt that ranks below other loans in the event of liquidation.

The proposed bond issue is subject to regulatory clearance, said the bank.

Established in 2001, Jamuna Bank now operates 167 branches and 110 sub-branches across Bangladesh. It also maintains a growing footprint through ATMs, agent banking outlets and collection booths, according to its website.