KARACHI (August 25 2006): Investors were perturbed over the Bank of Punjab announcement on Thursday, where the bank released financial results in Lahore Stock Exchange, first and after 20 minutes in Karachi Stock Exchange.

The situation further aggravated after investors heard that Bank of Punjab has announced a 125 percent right shares. This was the second mistake done either by the bank or the announcement at the Lahore Stock Exchange. Furthermore, it is learnt that it was rectified and the bank has only announced a right share of 1.25 percent means 1.25 shares for every 100 held. Before this rectification, several investors heard that the bank has announced 12.5 percent right shares.

The bank to meet the deadline of the State Bank of Pakistan (SBP) has to announce right shares or bonus shares to meet the condition of Rs 3 billion whereas the capital is around Rs 2.866 billion. Once again investors were deprived of their investments in the broad day light.

They again argued that why the announcement from Bank of Punjab first hit the Lahore Stock Exchange and Karachi Stock Exchange received the announcement after 20 minutes. In the past several incidents have taken place related to companies announcement, without any prudent result.

Bank of Punjab share price plunged by 5 percent or Rs 4.45 to Rs 84.70 Bank's declared profit after tax (PAT) of Rs 3.04bn (EPS Rs8.5), a growth of 59 percent.

Advances of the bank grew by 32 percent to Rs 84bn during 1H2006. On the other hand, deposits of the bank have reached Rs 114.5bn as on June 30, 2006 - 29 percent more than the deposits available as of December 2005. Advances to deposits ratio (ADR) of the bank has reached 73 percent as on June 30, 2006 from 72 percent observed at the end of 2005. The equity based of the bank during 1H2006 improved by 5 percent to Rs 14.3bn. Contrary to market expectations, bank did not announce any bonus pay-out with the results. Interestingly, right issue of 1.25 percent at a premium of Rs10 per share was announced with the results.

Copyright Business Recorder, 2006