The City Bank Ltd, a private commercial bank, is going to invest Tk 27.78 crore in a proposed digital bank as a sponsor shareholder, according to a disclosure posted on the Dhaka Stock Exchange Tuesday.
The bank said its board already approved the proposal for being a member of a consortium of a few banks and most likely a telecom company for the proposed digital bank.
City Bank plans to become a sponsor shareholder by way of investing a maximum of Tk 27.78 crore, which is 11.12 per cent of the paid-up capital of the proposed digital bank.
In June 2023, the Bangladesh Bank invited applications from entrepreneurs interested in establishing digital banks.
The City Bank last financial Report has posted an 8.83 per cent rise in its earnings for the first Half in 2023.
Its earnings per share (EPS) rose to Tk 1.97 in January-June period of 2023 from Tk 1.81 recorded in the same period last year.
The net operating cash flow per share (NOCFPS) of the bank turned positive in the first half of the current year. Its net asset value (NAV) per share was Tk 29.96 as on June 30, 2023 and Tk 28.21 as on December 31, 2022.
City Bank share price unchanged to Tk 21.40 each on Tuesday. The price moved between Tk 21.40 and Tk 23.50 throughout the last one year.
The company has Tk 2620 crore in market capitalization, Tk 1224 crore in paid-up capital and Tk 2012 crore in surplus reserve. It got listed with the capital market in 1986.
