City Bank to raise authorised capital to Tk 3,000cr

City Bank has approved a proposal to raise its authorised capital from Tk 2,000 crore to Tk 3,000 crore.

To increase the capital, the private bank will amend its Memorandum and Articles of Association, two foundational legal documents that define a company’s constitution, scope, and internal management rules, it said in a disclosure on the Dhaka Stock Exchange (DSE) website yesterday.

Tap here to add The Daily Star as a trusted source

Shares of City Bank remained unchanged at Tk 31.20 on the DSE.

As a result of the increase, the total number of authorised ordinary shares will rise to 300 crore from 200 crore. The face value of each share will remain the same at Tk 10, according to a decision taken by the bank’s board on August 13.

The move follows a BB directive barring banks with paid-up capital below Tk 2,000cr from declaring cash dividends

City Bank also plans to increase the maximum number of board directors, excluding independent directors, from eight to 10.

The move follows a Bangladesh Bank directive barring scheduled commercial banks with paid-up capital below Tk 2,000 crore from declaring cash dividends.

By raising its authorised capital ceiling, City Bank is preparing to increase its paid-up capital above the Tk 2,000 crore threshold, ensuring continued eligibility to pay dividends in the coming years.

The bank’s paid-up capital currently stands at Tk 1,749 crore, according to DSE data. It provided a 15 percent cash dividend and a 15 percent stock dividend last year.

City Bank plans to convene an extraordinary general meeting on October 4, 2026, via a digital platform to seek shareholder approval for the capital increase and board expansion. The record date for shareholder eligibility has been set for September 6, 2026.

The proposed increase remains subject to shareholder approval at the EGM, as well as consent and regulatory clearance from Bangladesh Bank and other relevant authorities.