PABC Rights Issue successful
CAPITAL: PABC Bank has been successful in mobilising capital by way
of a Rights Issue in the proportion of one new share to every existing
share at the rate of Rs. 10 each.
The share issue was opened on October 26, 2006 and closed on November
16, 2006. The additional capital by way of this Rights Issue came to Rs.
This has assisted the Bank to strengthen its capital base to Rs. 1100
m, including the capital funds which already existed as at September 30,
2006 as revealed in the publication of the financial statement for the
period of nine months ended September 30, 2006.
This has also enabled the Bank to meet part of the new capital
requirement set by the regulators and increased the capital adequacy
ratio to about 17.3% for the Bank.
The additional capital will pave the way for the Bank to open new
branches and expand its business and enhance its profitability in the
The additional shares allotted under the Rights Issue has already
been issued as on December 5, 2006.