NIB Bank Limited (NIB) announced on Wednesday that it has successfully completed a Rs 8.6 billion Rights Share Issue. After completion of the Rights Issue NIB's Capital Adequacy Ratio has reached 15.38 percent against a State Bank of Pakistan requirement of 10 percent and NIB's paid-up capital also substantially exceeds the Minimum Capital requirements of the State Bank of Pakistan. NIB is rated AA- by PACRA denoting a very low expectation of credit risk.
The majority shareholder of NIB, Bugis Investments, a wholly-owned subsidiary of Fullerton Financial Holdings of Singapore, maintained its strong support to NIB and at the conclusion of this Rights Issue remains the single largest shareholder of NIB with an 88.6 percent shareholding. NIB expects to continue to benefit from the financial and technical support and guidance provided by its largest shareholder.
NIB operates through 179 branches in 58 cities and towns across Pakistan and offers innovative customer-specific products and solutions, which are supporting the development of a profitable low-cost deposit business. In addition, the Bank has reduced its administrative costs by 28 percent from a year ago and is experiencing success in a focused recovery drive through which it has collected Rs 3.5 billion from previously classified advances. NIB's efforts over the past 18 months to realign and de-risk its businesses have borne positive results and it is expected that the benefits of these efforts combined with recent developments in the marketplace will allow NIB to continue to show improving results.-PR
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