EBL to sell land to meet regulatory requirement

Eastern Bank Ltd (EBL) has decided to sell 2.8 acres of land in the Purbachal area of Gazipur and the capital's Bashundhara to adjust its fixed asset-to-paid-up capital ratio.

The board of the private commercial lender made the decision as its fixed asset stands at more than 30 percent of the paid-up capital, said Md Abdullah Al Mamun, company secretary of EBL.

Paid-up capital, also known as equity capital, is the amount of money a company has received from shareholders in exchange for shares. A fixed-asset to equity-capital ratio is a ratio used to calculate a business's ability to satisfy long-term debt.

In compliance with the requirements of the regulatory authorities, the bank plans to sell the land at the prevailing market price, EBL said in a disclosure on the Dhaka Stock Exchange.

Mamun said the bank tried to sell the two plots in 2019 for the same reason but could not do so at that time. "That's why, the lender has made the fresh move."

Shares of EBL closed unchanged at Tk 29.40 on the DSE yesterday.