NRB Bank gets BSEC nod to raise Tk100cr thru IPO

NRB Bank Ltd, a fourth-generation private sector commercial bank, has received approval from the Bangladesh Securities and Exchange Commission (BSEC) to raise Tk100 crore through an initial public offering (IPO).

The private sector lender will issue ten crore ordinary shares through the fixed price method for raising the fund.

The commission on Thursday gave its consent to the proposal.

The bank will invest Tk92 crore in government securities, Tk4.17 crore in the secondary market and Tk3.83 crore to meet its IPO expenses.

According to the financial report from January to September 2022, the consolidated net interest income of the bank stood at Tk78.69 crore, which was Tk74.12 crore in the same period of the previous year.

In the same period, its consolidated net profit after tax stood at Tk28.48 crore, which was Tk28.68 crore in the same period of the previous year.

As of September 30, 2023, its net asset value per share was Tk12.72 without revaluation.

Its earnings per share for the period was Tk0.27, with a five-year weighted average of Tk0.72.

UCB Investment and Shahjalal Equity Management Ltd are working as the issue managers for the company.

The bank cannot declare dividends, make distributions, or approve any proposals before it is listed on the capital market.

Mamoon Mahmood Shah, managing director and CEO of the bank, told The Business Standard, "We have obtained permission to raise the fund from the capital market during a challenging economic period in order to meet regulatory requirements. Our accountability will increase after we are listed and become more compliant."

Besides, the bank will be more capable regarding its stability and expected returns, he added.

Its authorised capital was Tk1,000 crore and paid-up capital Tk590.59 crore.

NRB Bank, established in 2013, launched a wide variety of products and services under different categories such as retail banking, SME banking, NRB banking, corporate banking, and e-banking.

NRB Bank reaches customers through numerous delivery channels, including branch banking, agent banking, real-time online banking, internet banking, visa debit, and credit cards with global access and shared network across the country.

As of 2023, the bank has 50 branches, 24 sub-branches, 50 ATM booths outlets, and 308 agent outlets across the country.

According to the prospectus of the bank, at the end of September 2023, its NPL ratio stood at 5.07% of the total outstanding.

At the end of September this year, its capital adequacy ratio stood at 16.27%, which was 18.23% in the same period of the previous year.

During the period, the total loans and advances of the bank stood at Tk4,716.64 crore, which was Tk4,024.38 crore at the end of December 2021.

Its total deposit stood at Tk4,975.71 crore and total equity stood at Tk699.26 crore at the end of September 2023.