Sanasa Bank to raise Rs. 1 b via Rights

Thursday, 9 October 2014 00:05 - - {{hitsCtrl.values.hits}}

Sanasa Development Bank Plc (SDB) has announced a one-for-two Rights Issue to raise Rs. 1 billion to boost capital. As per the Board’s decision, SDB will issue 12.58 million shares at Rs. 80 each. The current stated capital is Rs. 2.5 billion represented by 25.175 million shares. SDB said the purpose of the Rights is to increase the bank’s capital base as per the Central Bank guidelines, which require an increase in core capital base to Rs. 5 billion by January 2016 from the current level of Rs. 3.4 billion. The fresh capital infusion will also help finance SDB’s portfolio growth. SDB last traded at Rs. 100.10 whilst its net asset per share is Rs. 138. People’s Leasing Plc holds a 4% stake in SDB whilst World Bank’s IFC holds 3.57%. A host of Sanasa shareholder trust companies and co-operative societies in various parts of the country also hold shares. It has assets worth Rs. 33 billion (inclusive of Rs. 23.5 billion in loans and receivables) and liabilities amount to Rs. 29 billion including Rs. 27 billion in deposits. For the six months ended in June 2014, SDB net interest income rose by 17% to Rs. 1 billion and net operating income by a similar percentage to Rs. 1.11 billion. Pre-tax profit was up 3% to Rs. 294 million and post-tax was up 6% to Rs. 210.4 million.

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