The bank's board of directors has decided to increase Islami Bank's authorised capital from Tk 2,000 crore to Tk 10,000 crore. The decision, taken at a meeting on November 4, was notified to shareholders through the stock exchange on Thursday (November 6).
A bank official said the move was taken on the advice of Bangladesh Bank to overcome the capital crunch created by irregularities of the S Alam Group, so that a foreign strategic investor can be brought in. The decision will take effect subject to approval by the regulatory agency and shareholders at an EGM.
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In the first nine months of the current year, the bank incurred a net loss of Tk 3,303 crore; in the same period last year, it had a profit of about Tk 79 crore. Due to the losses, its net asset value fell to Tk 3,584 crore as of September 30. As it has not paid dividends after 2023, the bank is now in the ‘Z’ category.
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