Home Banking Bank Asia doubles authorised capital to strengthen risk resilience

Bank Asia doubles authorised capital to strengthen risk resilience

by fstcap

The bank informed the stock exchanges that its authorised capital was increased to 3 billion ordinary shares of Tk 10 each from 1.5 billion shares.

Following the increase, relevant provisions of the bank’s Memorandum and Articles of Association, including Clause V of the Memorandum and Article 6 of the Articles of Association, have been amended and duly certified by the Registrar of Joint Stock Companies and Firms (RJSC).

The move comes amid heightened focus on banks’ capital adequacy and resilience under the Basel III framework.

Bank Asia reported a Capital to Risk-Weighted Assets Ratio (CRAR) of 15.32 per cent at the end of 2025, down from 15.61 per cent a year earlier, according to its financial highlights. Although the ratio remained above the regulatory minimum, maintaining adequate capital becomes increasingly important as banks expand their balance sheets and face credit and asset-quality risks.

Bank Asia’s total assets rose to Tk 589.49 billion in 2025 from Tk 532.90 billion a year earlier, while deposits increased to Tk 456.48 billion from Tk 416.56 billion during the period.

However, the increase in authorised capital does not mean Bank Asia has raised Tk 15 billion in fresh funds. Authorised capital represents the maximum amount of share capital a company is permitted to issue.

Bank Asia’s paid-up capital stood at about Tk 13.92 billion as of July, leaving substantial room under the newly authorised ceiling for future share issuance.

The expanded ceiling therefore provides flexibility for future equity-based capital raising, subject to regulatory and shareholder approvals. Such capital can support business expansion, absorb potential losses and help maintain capital adequacy as risk-weighted assets increase.

The development, however, should not itself be interpreted as evidence of an immediate capital shortage at the bank.

https://today.thefinancialexpress.com.bd/public/stock-corporate/bank-asia-doubles-authorised-capital-to-strengthen-risk-resilience-1785863424

You may also like