City Bank eyes Tk3,000cr capital ceiling, plans to expand board
The board of directors of City Bank PLC has proposed increasing the bank's authorised capital by 50% to Tk3,000 crore, creating room to strengthen its paid-up capital amid new Bangladesh Bank dividend requirements.
The decision was taken at a board meeting last Thursday, according to a price-sensitive disclosure.
The proposal would raise the authorised capital from Tk2,000 crore to Tk3,000 crore, divided into 300 crore ordinary shares with a face value of Tk10 each. It requires shareholder approval at an Extraordinary General Meeting (EGM) and subsequent regulatory clearance.
The bank has scheduled the EGM for 4 October 2026 at 3pm through a digital platform. The record date for determining shareholders eligible to vote has been set for 6 September.
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Preparing for BB's dividend rules
The move comes as City Bank prepares to meet Bangladesh Bank's new capital requirements. In a circular issued on 23 May, the central bank said commercial banks with paid-up capital below Tk2,000 crore will be barred from declaring cash dividends from 31 December 2026.
City Bank's current paid-up capital is Tk1,749.40 crore, leaving a Tk250 crore gap to the required threshold. The bank paid a 15% cash dividend and a 15% stock dividend for 2025.
By increasing its authorised capital, the bank will create the legal headroom to issue additional bonus or rights shares in the coming years and raise its paid-up capital above the regulatory threshold.
Bangladesh Bank's policy is aimed at strengthening banks' overall capital base. It also limits even well-capitalised banks to paying a maximum of 50% of their declared dividends in cash.
Board expansion proposed
City Bank has also proposed increasing the maximum number of non-independent directors from eight to ten. Shareholder approval will be sought to amend the relevant provisions of the bank's Memorandum and Articles of Association.
The board currently has seven shareholder directors. Partex Group holds three seats, while Anwar Group and Aziz Group hold one each. The board also includes an individual businessman and a nominee of the International Finance Corporation (IFC), the private-sector arm of the World Bank Group.
Bank insiders said the proposed expansion could allow broader representation of the bank's diverse shareholder base or bring in new strategic professionals.
Strong financial performance
The proposals come amid strong growth in City Bank's earnings. Its consolidated profit rose from Tk478 crore in 2022 to a record Tk1,324 crore in 2025. The bank posted Tk527 crore in consolidated profit in the first half of 2026.
City Bank shares closed at Tk31.20 on the Dhaka Stock Exchange on Thursday, giving the lender a market capitalisation of Tk5,458 crore.
Analysts said the bank's proactive capital management could support long-term dividend sustainability and strengthen its institutional position.
