Al Amin :
S M Parvez Tomal, Chairman of the board of directors of the NRB Commercial Bank Ltd, has said that it will be ease to make the bank of the people’s one by registering with the capital market.
“As per the existing business rules, involvement with the stock markets is mandatory for every schedule and private bank of the country. As a public limited company, we had no option but to go for the capital markets,” Tomal said while talking to The New Nation recently.
“Although, there was no time bar for the registration with the capital markets, we appealed for the registration in 2018 and we got the approval in the last November after concluding a long procedure amid the ongoing Covid-19 pandemic,” he said.
“The purpose of our shareholders is to be a real public limited company and to make the bank of the general people’s one. With the registration, we will come under the control of the Bangladesh Securities Exchange Commission (BSEC) along with the Bangladesh Bank,” he added.
This will increase our accountability to the general investors and will improve the corporate governance of the bank and I think a bank can only do well, if it has good corporate governance and compliance, he said.
The real goal of us is to contribute to the present socio-economic and infrastructural development of the country. We want to provide services to the rural people. Our new thinking is to start from the village and to be involved in different connections of the government at the bottom, the bank’s chairman said.
He further said they want involvement of more and more people and to encourage investment in order to create employment by creating new entrepreneurs. Capital market is the best option for the long time investment. But there are many sectors in the country to invest. For an example, IT, a potential sector, is still ignored by the private banks, and agriculture, backbone of the economy, needs more investment. We are giving priority on these two sectors, he added.
The Initial Public Offering (IPO) subscription of the bank has already started from February 3 to raise Tk 1.20 billion and the IPO subscription through an electronic subscription system under the fixed price method of the stock exchanges will be continued until February 9.
NRBC Bank is the first bank to be listed on the country’s stock market in 12 years. First Security Islami Bank is the last PCB so far which was listed in 2008. The stock market regulator — Bangladesh Securities and Exchange Commission (BSEC) — approved the bank’s IPO proposal on November 18 last year.
As per the regulatory approval, the private commercial bank will issue 120 million ordinary shares at face value of Tk 10 each. The IPO proceeds will be used to buy government securities (Tk 1.10 billion), investment in the secondary market (Tk 60.5 million) and IPO related expenses (Tk 39.50 million).
The bank’s weighted average earnings per share for the last five years and net asset value (NAV) per share were Tk 1.55 and Tk 13.86 respectively as of June 30, 2020. The bank’s authorised capital is Tk 10 billion while its pre-IPO paid-up capital is Tk 5.82 billion. NRBC Bank was established on February 20, 2013 and started operating on April 2 the same year.
S M Parvez Tomal, Chairman of the board of directors of the NRB Commercial Bank Ltd, has said that it will be ease to make the bank of the people’s one by registering with the capital market.
“As per the existing business rules, involvement with the stock markets is mandatory for every schedule and private bank of the country. As a public limited company, we had no option but to go for the capital markets,” Tomal said while talking to The New Nation recently.
“Although, there was no time bar for the registration with the capital markets, we appealed for the registration in 2018 and we got the approval in the last November after concluding a long procedure amid the ongoing Covid-19 pandemic,” he said.
“The purpose of our shareholders is to be a real public limited company and to make the bank of the general people’s one. With the registration, we will come under the control of the Bangladesh Securities Exchange Commission (BSEC) along with the Bangladesh Bank,” he added.
This will increase our accountability to the general investors and will improve the corporate governance of the bank and I think a bank can only do well, if it has good corporate governance and compliance, he said.
The real goal of us is to contribute to the present socio-economic and infrastructural development of the country. We want to provide services to the rural people. Our new thinking is to start from the village and to be involved in different connections of the government at the bottom, the bank’s chairman said.
He further said they want involvement of more and more people and to encourage investment in order to create employment by creating new entrepreneurs. Capital market is the best option for the long time investment. But there are many sectors in the country to invest. For an example, IT, a potential sector, is still ignored by the private banks, and agriculture, backbone of the economy, needs more investment. We are giving priority on these two sectors, he added.
The Initial Public Offering (IPO) subscription of the bank has already started from February 3 to raise Tk 1.20 billion and the IPO subscription through an electronic subscription system under the fixed price method of the stock exchanges will be continued until February 9.
NRBC Bank is the first bank to be listed on the country’s stock market in 12 years. First Security Islami Bank is the last PCB so far which was listed in 2008. The stock market regulator — Bangladesh Securities and Exchange Commission (BSEC) — approved the bank’s IPO proposal on November 18 last year.
As per the regulatory approval, the private commercial bank will issue 120 million ordinary shares at face value of Tk 10 each. The IPO proceeds will be used to buy government securities (Tk 1.10 billion), investment in the secondary market (Tk 60.5 million) and IPO related expenses (Tk 39.50 million).
The bank’s weighted average earnings per share for the last five years and net asset value (NAV) per share were Tk 1.55 and Tk 13.86 respectively as of June 30, 2020. The bank’s authorised capital is Tk 10 billion while its pre-IPO paid-up capital is Tk 5.82 billion. NRBC Bank was established on February 20, 2013 and started operating on April 2 the same year.
