Janata Bank to go public next year

FE Team | Published: November 23, 2008 00:00:00 | Updated: February 01, 2018 00:00:00

Kayes M Sohel
Janata Bank, the country's second largest nationalised commercial bank, plans to go public by the second half of next year in a bid to increase its paid-up capital, sources said.
The proposed size of its initial public offerings (IPOs) is Tk 1.0 billion. The existing paid-up capital of the bank is Tk 2.60 billion.
"The bank is expected to be listed by June next year," said a high official of the bank. The board of directors of the bank took the decision at a recent meeting.
"The process is on for making the financial statement by March next year, aiming to go public by June, 2009" he said adding that the fund to be raised through IPO will be utilised for strengthening its capital base.
In this regard, the bank will ink a deal with state-owned ICB Capital Management Limited soon to appoint it as an issue manager, the official said.
The bank will seek a healthy amount of premium per share with the proposed face value of Tk 100 each considering its asset, earnings and brand value, he added.
As of December 31, 2007, the bank has an authorised capital of approximately Tk 8.0 billion and a reserve of over Tk.2.93 billion.
Incorporated in November 15, 2007, the bank has a total asset of approximately $3562.94 million (Tk 244061.1 million).
Since its corporatisation the bank is being operated by independent management and board of directors in accordance with the Banking Companies Act of 1994.
The Janata Bank currently operates through 848 branches, including four overseas branches at United Arab Emirates. It is linked with 1198 foreign correspondents all over the world.
The returns on investment (ROI) and assets (ROA) are 6.52 percent and 2.38 percent respectively.
As of June 30 this year, total deposits of the bank reached Tk 202.79 billion while the total advances stood at Tk 132.78 billion. Classified loans and advances stood at Tk 20.28 billion.
Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were nationalised and merged as Janata Bank Limited.
The mission of the bank, which employs more than 13,000 persons, is to actively participate in the socio-economic development of the nation by operating a commercially sound banking organisation, providing credit to viable borrowers, efficiently delivered and competitively priced, simultaneously protecting depositors' funds and providing a satisfactory return on equity to the owners.
The board of directors is composed of 11 (eleven) members headed by a Chairman. The directors are representatives from both public and private sectors.
The bank is headed by the chief executive officer and managing director.