Rupali Bank gets BSEC approval for Tk680cr share issuance to govt

Rupali Bank, the country's only listed state-owned commercial bank, has received final approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue shares worth nearly Tk680 crore to the government against its existing equity support.

According to a price-sensitive information (PSI) disclosure published on the Dhaka Stock Exchange (DSE) today (13 July), BSEC approved the bank's proposal to issue 45.33 crore ordinary shares to the Government of Bangladesh through a letter dated 12 July.

The shares will be issued at Tk15 each, including a Tk10 face value and a Tk5 premium, raising a total of Tk679.99 crore. The shares will be allotted to the Secretary of the Finance Division under the Ministry of Finance on behalf of the government.

The approval follows a decision by Rupali Bank's board on 30 June to issue the shares. The proposal will now be placed before shareholders at an Extraordinary General Meeting (EGM) scheduled for 27 August. The bank's Annual General Meeting (AGM) will also be held on the same day.

The government had provided Tk679.99 crore in equity support to Rupali Bank in phases through the Ministry of Finance. The amount was recorded as share money deposits in the bank's accounts.

Under a 2020 directive of the Financial Reporting Council (FRC), companies are required to convert such share money deposits into ordinary shares within a specified period. The proposed issuance is aimed at complying with that regulatory requirement.

Following the issuance, Rupali Bank's paid-up capital will increase from Tk487.93 crore to Tk941.26 crore, while the government's ownership in the bank is expected to rise from 90.19% to around 95%.

As the revised paid-up capital will exceed the bank's current authorised capital of Tk700 crore, Rupali Bank will also seek shareholder approval to increase its authorised capital to Tk2,500 crore.

The share issuance will not bring any fresh funds into the bank, as it only converts the government's previous equity support into paid-up capital. The funds have already been injected into the bank and reflected in its financial statements.

The development comes as Rupali Bank continues to face financial challenges. Due to its weak financial position, the bank did not declare any dividend for the 2025 financial year.

For the January-March quarter of 2026, the bank reported an operating loss of Tk84 crore and a net loss of Tk396 crore, resulting in a loss per share (EPS) of Tk8.12. As of 31 March 2026, its net asset value (NAV) per share stood at Tk27.05, while its shares closed at Tk17.10 on the Dhaka Stock Exchange today