The board of directors of Islami Bank Bangladesh PLC has decided to increase the bank's authorized capital fivefold, raising it from the existing Tk 2,000 crore to Tk 10,000 crore.
The bank disclosed the decision on Thursday (November 5) through the Dhaka Stock Exchange (DSE).
According to the disclosure, the decision to hike the authorized capital was taken at the board of directors' meeting held on Wednesday (November 4).
To facilitate the capital enhancement, the board also resolved to amend the relevant clauses of the bank's Memorandum of Association and Articles of Association.
However, the decision to raise the authorized capital will take effect subject to approvals from Bangladesh Bank and other regulatory authorities, as well as the consent of the bank's shareholders.
The proposal will be placed before the shareholders for approval at an Extraordinary General Meeting (EGM). The process of enhancing the authorized capital will be finalized once all regulatory approvals and shareholder consents are secured.