Mutual Trust Bank to raise Tk500cr through bond

Mutual Trust Bank PLC, a private sector lender, has decided to raise Tk500 crore to bolster its Tier-II capital by issuing an Islamic Shariah-compliant subordinated bond, according to a stock exchange disclosure published today (27 August).

The decision was taken at a board of directors meeting on 25 August, the disclosure stated, adding that the 7-year bond remains subject to approval from relevant regulatory authorities. 

As of December 2025, the bank had Tk885 crore in liabilities related to bond issuance, comprising Tk400 crore from a perpetual bond and Tk485 crore from its fourth and fifth subordinated debt.

The bank had issued a contingent convertible perpetual bond of Tk400 crore as additional Tier-I capital through private placement in December 2020.

It also issued Tk500 crore each through private placement as its fourth and fifth non-convertible subordinated bonds.

According to Mutual Trust Bank's 2025 annual report, its capital to risk-weighted assets ratio (CRAR) stood at 13.55% at the end of December, supported by regulatory capital of Tk4,220 crore and total risk-weighted assets of Tk31,142 crore.

The bank's capital base comprised common equity Tier-I capital of Tk2,407.6 crore, Tier-I capital of Tk2,807 crore and Tier-II capital of Tk1,412.8 crore.

Its advance-deposit ratio stood at 75.05% during the year.

Mutual Trust Bank's asset quality improved in 2025, with its consolidated non-performing loan (NPL) ratio falling to 5.77% from 6.95%.

Non-performing advances declined to Tk1,829.5 crore from Tk2,074 crore during the year.

The bank reported a profit of Tk339.29 crore in 2025, up from Tk316.65 crore in 2024.

It paid a 12% stock dividend to its shareholders for 2025.

In the first half of 2026, however, the bank's profit fell to Tk106.82 crore from Tk116.11 crore in the same period a year earlier.

Its earnings per share also declined to Tk0.99 from Tk1.07 over the period.