ECONOMYNEXT – Sri Lanka’s Commercial Bank of Ceylon, the largest private bank by assets, has made a capital call from shareholders of 22 billion rupees, offering voting shares at 85 rupees and non-voting at 69 rupees.
Commercial Bank will offer 252,082,449 shares in the proportion of 1 for every exiting 5, to raise 21.42 billion rupees, the bank said in a stock exchange filing.
It will also offer 15,847,696 shares also 1 for 5 to raise 1,093 billion rupees.
The 22.52 billion rupees will used to bolster Tier 1 capital to accommodate future lending, the firm said.
The bank’s Tier 1 capital was 11.36 percent as at March 2024 (required 10 percent) and total capital ratio, 14.87 percent, (required 14.0 percent)
Commercial Bank had equity of 220.83 billion rupees and net assets of 164.93 rupees per share.
The stock closed at 112.75 rupees, down 75 cents on Tuesday.
Commerical is the first bank to make a cash call after bad loans and and a sovereign default dented banks following steep rates cuts made in 2020 to target ‘potential output’ by macro-economists. (Colombo/May28/2024)