KARACHI - The Samba Bank Limited will inject additional capital through issuance of right shares to comply with the SBP regulatory requirement for both 2009-2010.
This move is expected to capable the bank to meet the SBP minimum capital requirement of Rs6 billion and Rs7 billion for the years 2009 and 2010 and to benefit the shareholders as well.
In a notice sent to KSE by the SBL on Thursday, it said the management of the bank is proposed to pump Rs 1.
3 billion additional capital that will fulfill the MCR of 2011-12.
This will result in banks balance sheet to grow by 65 per cent over September 2009 and 2010, 38 per cent in 2011 and 36 per cent in 2012 respectively.
According to notice, the SBL will issue the right share at Rs 5.
75 per share and for that purpose the bank has already obtained the NOC from SBP on September 19, 2009.
Now the bank is fully committed to subscribe its share in the proposed right issue.
It may be pointed out that the capital with net of losses of Samba Bank Limited is below the MCR during 2009, which requires maintaining at least at Rs6 billion by December 31, 2009 that forced bank to inject extra liquidity into the system.
The growth in banks advances is projected at 154 per cent in 2010 over the last presented financial statements of September 2009.
In 2011-12 while sustaining the loan book is assumed to maintain the growth rate of 38 percent and 46 per cent respectively with the main focus on corporate loans.