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NBP to raise authorised capital to Rs 25 billion

KARACHI: National Bank of Pakistan will hold its 60th annual general meeting on April 28 in Karachi where a resolution will be presented before shareholders to approve increase in the bank’s authorized capital from Rs 10 billion to Rs 25 billion.

The bank said in a letter to the Karachi Stock Exchange that its current authorized capital at Rs 10 billion is insufficient to increase the paid up capital to Rs 23 billion as required by the State Bank. The bank has been continuously declaring bonus shares (in addition to cash dividend) ranging from 10 percent to 20 percent for past several years to strengthen its capital base. Resultantly, the paid up capital of the bank has now increased to Rs 8.969 billion. As this figure is very close to the bank’s authorised capital of Rs 10 billion, the available cushion is only Rs 1.031 billion (or 10 percent) as against the declared bonus shares of 20 percent.

In order to enable the bank to have sufficient cushion to increase its paid up capital up to Rs 23 billion during the next five years, the board of the bank had recommended to the federal government to approve increase in the bank’s authorised capital. The government has approved the increase in authorized capital through a Finance Division’s notification. staff report

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