City Bank plans to raise authorised capital to Tk 3,000 crore

City Bank has approved a proposal to raise its authorised capital from Tk 2,000 crore to Tk 3,000 crore.

According to a disclosure on the Dhaka Stock Exchange (DSE) website today, to facilitate the increase, City Bank will amend its Memorandum and Articles of Association, two foundational legal documents that define a company's constitution, scope and internal management rules.

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The increase will raise the total number of authorised ordinary shares from 200 crore to 300 crore, while maintaining the face value at Tk 10 each, according to a decision taken by the bank's board on August 13.

The bank also plans to increase the maximum number of board directors, excluding independent directors, from eight to 10.
The move follows a Bangladesh Bank directive barring scheduled commercial banks with paid-up capital below Tk 2,000 crore from declaring cash dividends.

By raising its authorised capital ceiling, City Bank is preparing to increase its paid-up capital above the Tk 2,000 crore threshold, ensuring continued eligibility to pay dividends in the coming years.

The bank's paid-up capital currently stands at Tk 1,749 crore, according to DSE data. It provided a 15 percent cash dividend and a 15 percent stock dividend last year.

City Bank plans to convene an extraordinary general meeting on October 4, 2026, via a digital platform to seek shareholder approval for the capital increase and board expansion.

The record date for shareholder eligibility has been set for September 6, 2026.

The proposed increase remains subject to shareholder approval at the EGM, as well as consent and regulatory clearance from Bangladesh Bank and other relevant authorities.

Shares of the bank remained unchanged at Tk 31.20 on the DSE today.