Mercantile Bank to open Islamic window

FE Report | Thursday, 19 September 2019

The board of directors of Mercantile Bank Limited has approved a proposal to establish an Islamic Banking Window.
The decision was taken at a meeting of board of directors of the Mercantile Bank held on Tuesday, according to an official disclourse on Wednesday.
"The board of directors of Mercantile Bank has approved to initiate required course of activity for establishing Islamic Banking Window side by side with the conventional banking of the Bank," said the disclourse.
The establishment of Islamic Banking Window, also known as Shariah-based banking system, is subject to the approval of regulatory authority and also the shareholders of the Bank in extraordinary general meeting (EGM), said the disclosure.
The record date, EGM date and venue of the EGM will be notified later.
Each share of the Bank, which was listed on the Dhaka Stock Exchange in 2004, closed at Tk 12.40 on Wednesday, losing 1.58 per cent over the previous day.
The bank's consolidated earnings per share (EPS) stood at Tk 1.16 for April-June 2019 as against Tk 0.88 for April-June 2018.
In six months for January-June 2019, its consolidated EPS was Tk 1.79 as against Tk 1.69 for January-June 2018.
The consolidated net operating cash flow per share (NOCFPS) was Tk 3.11 for January-June 2019 as against Tk 6.20 for January-June 2018.
The consolidated net asset value (NAV) per share was Tk 21.71 as on June 30, 2019 and Tk 22.91 as on December 31, 2018.
The bank disbursed 15 per cent stock dividend for the year ended on December 31, 2018.
The bank's paid-up capital is Tk 9.33 billion and authorised capital is Tk 12 billion while total number of securities is 937.15 million.
The sponsor-directors own 39.90 per cent stake in the bank, while the institutional investors own 17.49 per cent, foreign investors 6.54 per cent and the general public 36.07 per cent as of August 31, 2019, the DSE data showed.

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