DFCC to raise Rs. 7.6 b via Rights Issue

DFCC Bank (DFCC) plans to raise Rs. 7.6 billion via a Rights Issue to further boost its Tier 1 Capital to support the Bank’s future business expansion plans.

The Issue will be on the basis of two new shares for five held at Rs. 72 each and entails an offering of 106 million shares. 

As at 30 September 2018, DFCC Bank’s net assets value per share was Rs. 170.83, down from Rs. 180.60 from end 2017. 

Yesterday DFCC’s share closed a Rs. 82.10, down by Rs. 7 or 7.8%. 

The Bank’s Loans portfolio grew by Rs. 40.7 billion or 20% to Rs. 243.4 billion in the first nine months ended on 30 September.

In its interim results statement DFCC Bank said it consistently maintains capital ratio above the Basel III minimum capital requirements. As at 30 September 2018, the Group’s Tier 1 capital adequacy ratio stood at 10.722% while the total capital adequacy ratio stood at 16.067%. DFCC Bank recorded Tier 1 and total capital adequacy ratios of 10.360% and 15.732% respectively as at 30 September 2018. These ratios are well above the minimum regulatory requirements of 7.875% and 11.875%.