Bank Asia doubles authorised capital to Tk3,000cr

Bank Asia PLC has received regulatory clearance to double its authorised share capital to Tk3,000 crore, a strategic move that provides the lender with significant room for future capital expansion. 

According to a disclosure filed with the Dhaka Stock Exchange (DSE) yesterday, the bank's authorised capital has been enhanced from Tk1,500 crore – comprising 150 crore ordinary shares – to Tk3,000 crore, divided into 300 crore ordinary shares with a face value of Tk10 each.

The enhancement has been duly approved and certified by the Registrar of Joint Stock Companies and Firms (RJSC). Consequently, the bank has amended the relevant clauses of its Memorandum and Articles of Association to reflect the new capital structure. 

Currently, Bank Asia's paid-up capital stands at Tk1,391.50 crore, meaning the bank now has the flexibility to more than double its existing paid-up base through rights issues or bonus shares in the coming years, according to the market insiders.

The capital restructuring comes at a time when the bank is navigating a challenging earnings period. Bank Asia reported that its consolidated earnings per share (EPS) fell by 16% year-on-year during the first half (January-June) of 2026. The EPS settled at Tk1.77, down from Tk2.11 in the corresponding period of 2025. 

The bank attributed the decline primarily to a surge in interest expenses which outpaced interest income, coupled with a contraction in investment income and reduced earnings from commission, exchange, and brokerage services.

Despite the drop in profitability, the bank's balance sheet showed resilience in other key metrics. On a consolidated basis, its Net Asset Value (NAV) per share rose to Tk26.92 at the end of June 2026, compared to Tk24.33 a year earlier. 

This growth was driven by an increase in shareholders' equity, supported by higher statutory reserves and the transfer of startup funds from other liabilities. 

Furthermore, the bank's net operating cash flow per share (NOCFPS) witnessed a healthy jump to Tk48.77 from Tk37.60, largely due to increased cash inflows from customer deposits and institutional borrowings.

Looking back at the previous calendar year, Bank Asia reported a total net profit of Tk407.25 crore for 2025, yielding an EPS of Tk3.18. 

To reward its investors, the bank had disbursed a 17% dividend for the year, consisting of an equal split of 8.5% in cash and 8.5% in stock. 

Following the announcement of the capital enhancement yesterday, investor reaction remained neutral on the bourse, with the bank's share price closing unchanged at Tk18 on the Dhaka Stock Exchange.