The bank will no longer place the proposal to increase the maximum number of directors, excluding independent directors, from eight to 10 at its upcoming Extraordinary General Meeting (EGM).
City Bank PLC has withdrawn its proposal to increase the maximum number of non-independent directors from eight to 10, while retaining its plan to raise authorised capital to Tk3,000 crore.
The decision was taken at a board meeting on Monday after the board reviewed the legal, regulatory, governance, shareholder, contractual and other implications of the proposals approved earlier this month, according to a price-sensitive disclosure filed with the Dhaka bourse today (25 August).
The bank will no longer place the proposal to increase the maximum number of directors, excluding independent directors, from eight to 10 at its upcoming Extraordinary General Meeting (EGM).
The proposal has been withdrawn from the EGM agenda and kept open for consideration at an appropriate time, the bank said.
City Bank had initially approved the board expansion proposal at its 13 August meeting. The bank currently has seven shareholder directors and two independent directors.
Tk3,000cr capital plan retained
The proposal to increase the bank’s authorised capital by 50% to Tk3,000 crore from Tk2,000 crore will remain on the EGM agenda.
The increased authorised capital will comprise 300 crore ordinary shares of Tk10 each, compared with the existing 200 crore shares.
The proposal, along with amendments to the relevant provisions of the bank’s Memorandum and Articles of Association, remains subject to shareholder, regulatory and statutory approvals.
The EGM will be held online on 4 October at 3pm. The record date has been set for 6 September.
Capital headroom amid dividend rules
The capital expansion comes as banks prepare to comply with Bangladesh Bank’s new dividend requirements.
Under a central bank circular issued on 23 May, commercial banks with paid-up capital below Tk2,000 crore will not be allowed to declare cash dividends from 31 December 2026.
City Bank currently has paid-up capital of Tk1,749.40 crore, leaving it Tk250 crore short of the threshold.
By increasing authorised capital, the bank will create additional room to raise paid-up capital through future rights or bonus shares.
For 2025, City Bank declared a 15% cash dividend and a 15% stock dividend.
Earnings remain strong
The capital plan comes amid a strong growth in the bank’s profitability. Consolidated profit increased from Tk478 crore in 2022 to Tk1,324 crore in 2025.
In the first half of 2026, the bank posted consolidated profit of Tk527 crore.
City Bank shares closed at Tk30.40 on the Dhaka bourse today, giving the bank a market capitalisation of around Tk5,318 crore.
Source: The Business Standard
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