Karachi: NIB Bank has been successful to raise PkR8.6bn through Right Shares Issue, after which the company’s Capital Adequacy Ratio has jumped to 15.38% which is high above the State Bank of Pakistan’s requirement of 10%. Furthermore, the company has also been able to exceed State Bank’s Minimum Capital Requirement substantially through this issue.
According to Alfalah Securities Limited, NIB Bank’s major shareholder, Bugis Investments has continued its support towards the Bank and has actively participated in the Rights issue, after which its shareholding has reached to 88.6%.
NIB Bank has also been able to cut down its administrative cost by ~30% within a year and has also recovered PkR 3.5 bn from its previous advances which depicts a good sign for the company in the upcoming time to come. Based on 1st Quarter CY11 results, the accumulated losses of NIB bank stood at Pkr 42.387 bn whereas, the total asset base of the company stood at PkR 150.392 bn. Alfalah Securities expects the right shares issued would help the company to increase its equity base as the rights issued would lower the effect of massive accumulated losses.