The United Commercial Bank (UCB), a leading private sector commercial bank, has announced a series of capital enhancement measures to strengthen its financial position.
The bank’s board has approved the issuance of one rights share for every two existing shares at an offer price of Tk 10 each. This move aims to boost UCB’s core capital by raising fresh equity from existing shareholders, according to filing with the DSE.
In addition to the rights issue, the board has also approved plans to issue new shares to a strategic investor as part of a broader initiative to reinforce the bank’s capital base.
To further support its expansion and future resilience, UCB has proposed increasing its authorised capital from Tk 25 billion to Tk 50 billion. The proposal is subject to approval from shareholders at the bank’s 42nd Annual General Meeting and clearance from relevant regulatory authorities.
A rights issue allows existing shareholders to purchase additional shares at a fixed price, thereby injecting new equity into the institution. This increase in core capital is expected to enhance the bank’s ability to absorb financial shocks and ensure long-term stability.
Despite these measures, the bank has faced a challenging financial year. For the year ended 2024, UCB failed to declare any dividend for shareholders — the first time in over a decade. Its net profit plummeted to Tk 77.52 million, representing a decline of more than 96 per cent compared to the previous year.
According to the bank, earnings per share (EPS) dropped due to higher provisioning requirements against loans and advances.
The downturn continued into the first quarter of 2025, with EPS falling sharply to Tk 0.04, which is eleven times lower than the same period a year earlier.
https://today.thefinancialexpress.com.bd/stock-corporate/ucb-to-offer-rights-share-1748804615
