Former chairman announces plan to increase stake in NCC Bank
According to the announcement, Tofazzal will acquire 59.86 lakh shares as a gift from his spouse and he plans to purchase 12.50 lakh shares on the DSE
Tofazzal Hossain, a sponsor and former chairman of National Credit and Commerce (NCC) Bank, has announced plans to increase his stake in the bank.
In an announcement on the Dhaka Stock Exchange (DSE) recently, he shared his plans to increase his holding of shares in the bank to 72.36 lakh.
According to the announcement, Tofazzal will acquire 59.86 lakh shares as a gift from his spouse, Razia Hossain, who is also a sponsor of the bank. Additionally, he plans to purchase 12.50 lakh shares on the DSE at the prevailing market price.
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NCC Bank shares closed at Tk11.40 today, down 4.20% from the previous session's closing price on the DSE.
Tofazzal served as the bank's chairman in 2008 and continued as a director until 2011.
A senior bank official told TBS that Tofazzal intends to increase his stake in the bank to meet the 2% minimum shareholding requirement mandated by the Bank Company Act for holding a directorial position.
On 17 October, the Bangladesh Bank removed NCC Bank chairman M Abul Bashar and director Md Abdul Awal after they were declared loan defaulters at Bank Asia. Following the chairman's removal, the bank's board elected Md Nurun Newaz as the new chairman.
According to the DSE, NCC Bank currently has a paid-up capital of Tk1,140 crore and 111 crore shares. As of September, the ownership distribution is as follows: sponsor-directors hold 36.72% of the shares, institutional investors own 23.51%, foreign investors account for 0.35%, and general shareholders possess 39.42%.
The bank reported a remarkable 108% growth in consolidated net profit, reaching Tk201 crore for the July-September quarter of this year, compared to the same period last year. This significant increase in profit was primarily driven by a reduction in provisions for classified loans, as noted in the bank's financial statement.
In the first nine months of this year, its consolidated net profit was Tk275 crore, which was Tk255 crore a year ago during the period. In the January-September period, its consolidated earnings per share is Tk2.48.
The bank paid a 12% cash dividend to its shareholders for the last year, which was 5% cash and 5% stock a year ago.
