SBAC Bank to enter merchant banking, asset management business

The South Bangla Agriculture and Commerce (SBAC) Bank has decided to launch two subsidiary companies to foray into merchant banking and asset management business.

The newly listed lender shared the information in a posting on the website of Dhaka Stock Exchange today.

It decided to form a merchant banking company named SBAC Bank Capital Management with a paid-up capital of Tk 40 crore and authorised capital of Tk 50 crore subject to approval from the regulatory authorities.

SBAC has also decided to form an asset management company named SBAC Bank Asset Management Company with a paid-up capital of Tk 40 crore and the authorised capital of Tk 50 crore.

SBAC Bank announced 4 per cent cash and same amount of stock dividend for the year ended on December 31 of 2020.

The reason for declaration of stock dividend is to meet the Basel-III requirement, it added.

SBAC, which began commercial operation in Bangladesh on February 20 in 2013, issued 10 crore ordinary shares at face value and raised Tk 100 crore in the current year.