Summit Bank to enhance its authorized capital to Rs 25 billion
Summit Bank's board of director have decided to enhance the authorized capital of the bank from Rs 20 billion to Rs 25 billion in order to strengthen bank's financial soundness with the expansion of its operation and business.
According to the official notification issued to Pakistan Stock Exchange, the board of directors' related to enhancement of authorized capital will be approved later on by State Bank of Pakistan and its stakeholders in the general body meeting.
Authorized capital is the number of stock units that a publicly traded company can issue as stated in its articles of incorporation, or as agreed upon by shareholder vote. Authorized capital is often not fully used by management in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly. Another reason to keep shares in the company treasury is to retain a controlling interest in the company.
In the meeting of board held
recently, Summit Bank's directors approved the alteration in the object clause III of the Memorandum of Association of the Bank by addition of clauses specific to Islamic Banking Business. The subject addition shall enable the Bank to achieve its corporate objective more advantageously as well as to align with its strategic object to convert from a conventional bank to a wholly Islamic Bank.
It is merit to mention here that Summit Bank is being converted to be full-fledged Islamic Bank which will be concluded its conversion by end of 2017 after due operations and procedures to be taken place under SBP rules and Sharia requirements.
Recently, Summit Bank has decided to allot Rs 7 billion fully paid ordinary shares of the bank at Rs. 10 share to Suroor Investments Limited by the issuance of 700 million right shares. Its board of directors took decision in the recent meeting on right shares which it announced to issue as 11.2 percent at par value of Rs 10 meaning thereby each in the portion of one share for every 8.8934 share.
The bank announced the financial result which saw a decrease of profit to Rs 238 million in 2015 from Rs 241 million reported in 2014. The bank's revenue earning improved to Rs 5.94 billion in 2015 from Rs 5.07 billion reported in 2014.
Summit Bank Ltd is one of the fastest growing commercial banks of Pakistan, which, in a very short span of time, has expanded its network across the country and built an infrastructure based on state of the art "Risk Management Framework" as well as "IT platform." Also targeting to be a universal bank in terms of providing products and services in all key segments of banking i.e. Corporate and Investment Banking, Trade Finance, Commercial Mid Market / SMEs, and Consumer Banking, it commenced its operations in August 2006.
The Pakistan operations of Rupali Bank Limited were acquired by Arif Habib Securities Limited under the Scheme of Amalgamation approved by the State Bank of Pakistan. The name of Rupali Bank Ltd was subsequently changed to Arif Habib Rupali Bank Ltd and then finally to Arif Habib Bank Ltd in October 2007. On 31st March 2010, Suroor Investments Ltd, a company incorporated in Mauritius, acquired 59.41% stake in Arif Habib Bank Ltd from Arif Habib Securities Ltd, and on 18th August 2010, Arif Habib Bank Ltd was rebranded as Summit Bank Ltd.