The former president announces a plan to increase his shares in NCC Bank

Tofazzal Hossain, sponsor and former chairman of National Credit and Commerce Bank (NCC) Bank, has announced plans to increase his stake in the bank.

In a recent announcement on the Dhaka Stock Exchange (DSE), he shared his plans to increase his shareholding in the bank to 72.36 lakh.

As announced, Tofazzal will acquire 59.86 thousand. shares as a gift from his wife Razia Hossain, who is also the bank’s sponsor. Additionally, it plans to purchase 12.50 lakh shares on DSE at the prevailing market price.

Shares of NCC Bank closed at Tk 11.40 today, down 4.20% from the closing price of the previous session on the DSE.

Tofazzal served as the bank’s president in 2008 and served as a director until 2011.

A senior bank official told TBS that Tofazzal intends to increase its stake in the bank to meet the Banking Companies Act’s minimum shareholding requirement of 2% for directorship.

On October 17, Bangladesh Bank dismissed NCC Bank chairman M. Abul Bashar and director Md. Abdul Awal after they were declared defaulters by Bank Asia. After the dismissal of the president, the bank’s management board elected Md. Nurun Newaz as the new president.

According to DSE, NCC Bank currently has a paid-up capital of Tk 1,140 crore and 111 crore shares. As of September, the ownership breakdown is as follows: sponsor-directors hold 36.72% of the shares, institutional investors hold 23.51%, foreign investors hold 0.35%, and general shareholders hold 39.42%.

The bank recorded a remarkable 108% increase in consolidated net profit to reach Tk 201 crore for the July-September quarter this year, compared to the same period last year. This significant increase in profit was primarily due to a decrease in provisions for classified loans, which was stated in the bank’s financial statements.

During the first nine months of this year, the company’s consolidated net profit stood at Tk 275 crore as against Tk 255 crore during the year-ago period. For the period January-September, the consolidated earnings per share are Tk2.48.

For last year, the bank paid shareholders a 12% cash dividend, while a year earlier it was 5% in cash and 5% in shares.