Dhaka Bank to raise Tk300cr via perpetual bond to bridge capital gap
Industry analysts suggest that the new bond will provide a much-needed buffer to stabilise cash flows and support future asset growth.
Dhaka Bank PLC has decided to raise Tk300 crore through the issuance of a contingent-convertible perpetual bond to strengthen its capital base and ensure compliance with international Basel-III standards.
The decision was finalised during the bank's board meeting held on Thursday, according to a price-sensitive disclosure.
The bank said the fresh capital will be categorised as Additional Tier-1 capital. This strategic move is aimed at addressing a marginal shortfall in the bank's core capital.
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According to its half-yearly unaudited report for 2026, the bank's Tier-I capital (going concern capital) stood at 8.19%, which is below the 8.50% threshold mandated by the Bangladesh Bank. While the bank's total capital ratio remained compliant at 12.66% – slightly above the 12.50% requirement – the issuance is necessary to reinforce its primary capital layer.
Industry analysts suggest that the new bond will provide a much-needed buffer to stabilise cash flows and support future asset growth.
The issuance remains subject to final approval from the Bangladesh Securities and Exchange Commission and the central bank.
The capital injection comes at a time when the lender is facing significant pressure on its core banking operations.
During the first half of 2026, Dhaka Bank reported a 13% decline in consolidated net profit, which fell to Tk100 crore. A primary driver of this downturn was a staggering 45% plunge in net interest income, which settled at Tk122 crore.
Consequently, the consolidated earnings per share (EPS) for the six months stood at Tk0.95, down from the previous year.
Despite the struggle in core lending, the bank managed a resilient performance in the second quarter (April–June), posting a 33% growth in consolidated net profit.
This recovery was largely underpinned by robust income from government Treasury bonds and other operating segments, which successfully cushioned the shortfall in interest earnings. Quarterly EPS improved to Tk0.38 from Tk0.29 a year ago.
However, the bank is currently navigating a liquidity crunch, as evidenced by a negative consolidated net operating cash flow per share of Tk10.43 for the first half of the year.
