The board of directors of the Prime Commercial Bank Limited, in its meeting held here on Monday, proposed 15 percent cash dividend and 15 percent bonus shares that is a 30 percent pay-out for 2004 to its shareholders after posting a pre-tax profit of Rs 525 million for 2004, a growth of 22 percent over 2003. According to a bank spokesman, the Prime Bank had sustained overall growth during 2004, with the Bank's total assets at Rs 40.3 billion and deposits of Rs 30.1 billion, registering a growth of 36 percent and 39 percent respectively.

In the backdrop of this steady growth, the Prime Bank comprehensively expanded and consolidated its capital base during the year under review by increasing its paid-up capital to Rs 2.019 billion through a fresh issue to right shares, taking the bank's total equity to approximately Rs 3 billion, he added.

The spokesman said this increase in capital has put the Prime Bank well ahead of the State Bank of Pakistan's requirement for the paid-up capital of all commercial banks to be at Rs 2 billion by December 2005. This also reflects the level of confidence and commitment of the shareholders, the board and the management in the potential of the bank, he added.

In addition to the increase in the paid-up capital, the Prime Bank has also issued eight-year term finance certificates (TFCs) of Rs 800 million, he said , adding this long-term bond issue contributes further to improving the capital adequacy ratio of the Bank, as the Bank continues to move from strength to strength consistent with its strategy for a steady and balanced growth.

Copyright Business Recorder, 2005