Janata Bank, ICB raise authorised capital

State-owned Janata Bank and Investment Corporation of Bangladesh (ICB) have increased their authorised capital.
Authorised capital of Janata Bank has been raised to Tk 2,000 crore from Tk 800 crore, while ICB increased the amount to Tk 500 crore from Tk 100 crore.
Authorised capital is the maximum amount of share capital that a company is authorised to issue to shareholders. Part of the authorised capital can (and frequently does) remain unissued.
The rise in the bank's authorised capital was approved at an extra-ordinary general meeting (EGM) in Dhaka yesterday, said a statement.
The EGM also approved rising the bank's paid-up capital to Tk 125 crore through issuance of rights shares at Tk 100 each in favour of the government.
As per the annual report of the bank, it made operating profit of Tk 700 crore and net profit of Tk 319 crore in 2008.
Meanwhile, the finance ministry has approved the enhancement of the ICB authorised capital, which came into effect last Sunday.
“With the increase in the authorised capital, the corporation can expand its business activities, as it can raise working capital up to Tk 500 crore through issuing rights shares,” said a senior official of the ICB.
The existing working or paid-up capital of the ICB is Tk 50 crore.
The official said the increase was also needed for issuing rights shares, as a proposal for issuing one rights share against one existing share is awaiting the finance ministry's approval.
The ICB has proposed offering each rights share at Tk 100, in addition of Tk 900 as premium.
The increase also creates opportunity for giving bonus shares as dividend, the official added.
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