KARACHI: Samba Financial Group of Saudi Arabia has injected Rs3.2 billion into Samba Bank, meeting the State Bank of Pakistan’s minimum capital requirement, says a company press release.
With the capital injection, Samba Bank’s capital (net of losses and discount) stands at Rs7.98 billion and the group’s shareholding in the bank will increase from 68.42 per cent to 80.68 per cent. This is the second injection of capital for subscription of rights shares which will strengthen the capital base of the bank in Pakistan, the company said. Late last year, the group had injected the first portion of the shareholding by subscribing to the rights shares. According to the State Bank’s condition, banks had to increase their capital to Rs6 billion by the end of December 2009.
Samba Bank President and Chief Executive Officer Tawfiq A Husain, commenting on the capital injection, said: “By further strengthening the capital base and its shareholding in the bank, the group has demonstrated its commitment and confidence in Samba Bank. The additional capital injection, over and above the SBP’s minimum capital requirement, will make Samba Bank’s capital adequacy ratio one of the highest in the industry and lead to improvement in credit ratings. Samba Bank is listed on all the three stock exchanges (Karachi, Lahore, and Islamabad) of the country and has 28 branches.
Published in the Express Tribune, May 14th, 2010.