Silkbank previously known as Saudi-Pak Bank held meeting of its board on Wednesday. Which approved the issuance of right shares of rupees seven billions. This issuance will exceed the State Bank of Pakistan’s minimum capital requirement of rupees six billion. The decision will ensure that the bank is adequately capitalized until the end of 2010.
The increase in capital will be through issuance of 2.8 billion right shares at the rate of 3.11 right shares for every one share held. This is subject to compliance by the bank of all necessary regulatory approvals. The capital injection by a further rupees seven billion will provide Silkbank adequate room for future growth. The bank aims at introducing a host of innovative products and services moving it closer towards a leadership role in the banking industry. The key sponsors of the Silkbank are Nomura Investments, Bank Muscat and IFC. (P/R)