Sum­mit Bank to en­hance its au­tho­rized cap­i­tal to Rs 25 bil­lion

The Pak Banker - - FRONT PAGE - Muham­mad Yasir

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.

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