Silk Bank to Float Rs 2 Billion Term Finance Certificate
Silk Bank will float a Term Finance Certificate of Rs 2 billion in coming months to raise funds for meeting its requirements.
The central bank has given a final approval to the management of the bank to issue a Term Finance Certificate (TFC). The bank has been also given an option to exercise a call option of Rs 500 million depending on the situation.
The capital will help the management of the bank to implement its expansion plan for operations in the coming months, which have been submitted in the central bank earlier as targets to achieve a certain level of growth in profit, assets and branches network.
The bank will meet its requirement of Capital Adequacy Ratio described under Basel III. This additional fund will empower the bank financially to expand its business operations through network, services and products.
Silk Bank witnessed tough financial issues for the past couple of years including shortfall of paid-up capital and consistent losses on the balance sheet.
However, its growth and profit expectations for 2017 remain very strong and are driven by the Bank’s high earning consumer assets and card portfolios where the Bank maintains a leadership position in several products.
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