Business Report :
The Bangladesh Securities and Exchange Commission (BSEC) has rejected National Credit and Commerce (NCC) Bank’s application seeking issuance of a Tk500 crore non-convertible bond.
On Thursday, the private sector lender disclosed that the commission vide a letter dated 9 October, stating that the commission is not in a position to approve the application of the bank for bond issuance.
“However, the company will appeal to the commission for further review and consideration of issuing this bond,” reads the disclosure.
Earlier, in a disclosure on 10 October 2022, the bank said that it had decided to issue a bond, namely “NCC Bank Non-Convertible Subordinated Bond-2”, which was subject to approval of the stock market regulator.
Before that, on 16 June 2021, the board of NCC Bank approved in principle for issuing of the subordinated bond valuing Tk700 crore only to have capital support under Tier 2 Capital of Basel III, subject to approval of the BSEC and Bangladesh Bank.
Thereafter, the Bangladesh Bank allowed the issuance of a bond of Tk500 crore for that purpose.
According to NCC Bank’s half-yearly financials for 2024, despite a 35.72% growth in its total operating income, its net profit after tax declined by 53% as its provision increased significantly.
During January to June 2024, its net profit declined to Tk74.16 crore, which was Tk158 crore in the same period of the previous fiscal year.
It had maintained Tk360 crore as provision against loans and advances during January to June 2024, which was Tk99.62 crore in the corresponding period of the previous year.
In 2023, it made a profit of Tk229 crore and paid a 12% cash dividend to its shareholders.