Global Islami Bank at the peak of customer demand
Online Desk :
The fourth generation Global Islami Bank has entered the country’s capital market. The Initial Public Offering (IPO) application of the bank is going on for the 4th day starting from October 16, which will continue till October 20.
As a fast growing bank, Global Islami Bank also has special benefits for investors in Initial Public Offering (IPO). 25 percent shares have been allocated with preference to expatriates. The remaining 75 percent shares will be invested among regular investors where investors can apply for IPO up to Tk 10,000 or its multiple up to Tk 50,000, said a press release.
Market experts feel that since banks and financial sector institutions are standing on solid foundations, investors feel more comfortable investing in these companies. This keeps the market stable and balanced. From that point of view, Global Islami Bank is at the top of the investors’ demand till now.
On June 15, Global Islami Bank Limited received approval to raise capital of Tk 425 crore from the stock market through an initial public offering (IPO) at a fixed price. The IPO was approved in the 827th commission meeting held under the chairmanship of the regulatory body Bangladesh Securities and Exchange Commission (BSEC) Prof. ShibliRubaiyat-ul-Islam. The bank will raise 425 crores from the stock market by issuing 42.5 million shares worth 10 taka each through the IPO. The bank will invest the money raised in SMEs, government securities and securities listed in the stock market.
Global Islami Bank Limited (GIB) is working to ensure customer service and expand investment across the country. The reputation of the bank has already spread throughout the country through conducting banking activities based on 100% Shariah.
In order to bring the rural population into the banking channel, Global Islami Bank has given more importance to the expansion of branches both in urban and rural areas and has prioritized investment in the CMSME sector. Global Islami Bank has played a role in the successful implementation of financial inclusion programs and is also working to achieve the goals of the Bangladesh Government’s Sustainable Development Goal through investment in agriculture and rural sectors.
A review of the bank’s financial reports showed that the bank has achieved consistent growth in deposits, investment, operating income, earnings per share (EPS) from January 2021 to September 2021. In the above 9 months, the income on investment is Tk. 977 crore 65 lakh. By deducting profit paid on deposits from this investment income and adding income on investment in shares and securities, exchange brokerage commission and other operating income, the total operating income stands at Tk. 395 crore 14 lakhs. Profit before tax after excluding all operating expenses such as salaries and wages, rent, tax insurance, electricity, legal expenses, stamp duty, telecommunications, stationery, printing, advertising, chief executive’s salary and fees, directors’ fees, depreciation and provisions. It stands at Tk. 175 crore 14 lakh taka. After deducting Tk. 76 crore 60 lakh from this profit, the net profit of the bank stands at Tk. 98 crore 54 lakh taka. The earnings per share (EPS) has been Tk 1.91 and the assets per share (NAV) stood at Tk 14.42. Net operating cash flow per share is Tk 10.63. In the previous year, the bank earned Tk. 1204 crore 87 lakh on investment from January-December 2020. During the year, the net profit excluding operating expenses and tax expenses from the total operating income was Tk. 102 crore 93 lakhs. The earnings per share (EPS) is 2.10 taka. Assets per share (NAV) during the year was Tk.13.65 and net operating cash flow per share was Tk. 15.12.
As a result of closely monitoring the investment activities, the percentage of non-performing and bad loans of the bank has been kept satisfactory and the bank is in a relatively good position due to proper preservation of capital adequacy of the bank.In the financial year 2019, the income on investment was 1104 crore 27 lakh taka. The net profit for the year was Tk 36 crore 70 lakh and earnings per share or EPS was Tk 0.79. Assets per share were Tk 12.17 during the financial year and net operating cash flow per share was Tk 2.27.
In the financial year 2018, the income on investment was Tk 939 crore 65 lakh and the net profit for the financial year was Tk 53 crore 2 lakh or Earnings per share (EPS) Tk 1.25. At that time, the bank’s assets per share were Tk 12.51. And the net operating cashflow per share was Tk 0.31.
In the financial year 2017, the income on investment was Tk. 720 crore 98 lakh and the net profit for the year was Tk. 38 crore 96 lakh or EPS Tk 0.92. Assets per share during the financial year were Tk 11.77 and the net operating cash flow per share was Tk 4.12.
Investment income in 2016 was Tk 428 crore 75 lakh. The net profit of the bank in the financial year was Tk 42 crore 30 lakh. EarningPer Share or EPS is 1.00. At that time, the bank’s assets per share were Tk 10.86 and net operating cash flow per share was 5.41.
GIB Dividend Distribution: The bank paid a cash dividend of 5 percent on net profit in FY2017. 10 percent stock dividend has been paid in the next financial year 2018. 5 percent stock in FY 2019 and 5 percent in cash and 5 percent in stock in FY 2020.
The bank’s asset details: The total assets of the bank in the last 9 months are Tk 12 thousand 727 crore 70 lakhs. In the financial year 2020, this asset was 12 thousand 90 crore 21 lakh taka. 10 thousand 640 crore 53 lakh taka in 2019 financial year. 9 thousand 217 crore 19 lakh taka in 2018 financial year. 7 thousand 913 crore 6 lakh taka in 2017 financial year.In the financial year 2016, the assets were 4 thousand 926 crore 67 lakh taka. The bank has an authorized capital of Tk 2 thousand crores. And the paid up capital is 515 crore 41 lakh 87 thousand taka.
Liability Details: In 9 months the bank has a liability of Tk 11 thousand 984 crore 69 lakh and 11 thousand 420 crore 21 lakh taka in fiscal year 2020. 10 thousand 71 crore 69 lakh taka in 2019 financial year and 8 thousand 685 crore 57 lakh taka in 2018 financial year.7 thousand 412 crore 92 lakh taka in 2017 financial year. 4 thousand 465 crore 3 lakh taka in 2016 financial year.
Shares of Tk 425 crore will be distributed as follows:
According to the notification of Bangladesh Securities and Exchange Commission on June 16, 2022, NRB or Bangladeshi expatriates will get 25% of the total shares,that is, NRB or expatriates will get Tk 106 crore 25 lakh or 10 crore 62 lakh 50 thousand shares. If 25% IPO share subscription is not fulfilled by migrant workers, the unsubscribed portion will be distributed among other common investors on a pro rata basis. Eligible investors will get 63 crore 75 lakh taka or 6 crore 37 lakh 50 thousand shares. 15 crore 93 lakh 75 thousand taka or 1 crore 59 lakh 37 thousand 500 shares of mutual fund. And ordinary investors will get 239 crore 6 lakh 25 thousand taka or 23 crore 90 lakh 62 thousand 500 shares.
Global Islami Bank Limited is currently conducting banking operations through 199 branches/sub-branches, 9 agent banking and 101 ATM booths across the country. At the same time, the bank is working to expand the scope of banking services as soon as possible.
