NDB to expand investment banking in Bangladesh
National Development Bank PLC (NDB) is placing a lot of attention on expanding its investment banking in Bangladesh, a venture that was set up after NDB Group acquired a controlling stake in Capital Market Services Ltd, a licensed merchant bank in Bangladesh in 2009. NDB Bank has a 77.8 per cent equity stake in the merchant bank. ”Through NDB Capital Ltd, we’ll focus on expanding our Bangladesh operation,” NDB CEO Rajendra Theagarajah told the Business Times. NDB Capital has introduced many products including convertible bonds, preference shares, USD offshore syndications, convertible preference shares and private equity to Bangladesh.
“We aim to do this in the future in a more focused manner,” Mr. Theagarajah said. In the past month NDB has attracted some high profile foreign interest after a Japanese company based in Singapore bought some 3 per cent in the bank. Analysts said that Perpetual Treasuries which is a primary dealer has also bought a substantial block in NDB recently. They said that on 19 August NDB share saw net foreign selling of some 3.1 million shares and on Tuesday saw1,729,717 shares sold by foreigners. Perpetual Treasuries may have purchased these parcels,” an analyst said.
NDB and its group companies posted a Profit Attributable to Shareholders (PAS) of Rs.1083 million for the first six months of 2016.
On the bank’s financial performance, Mr. Theagarajah at a recent investor forum mentioned that the growth in net interest income (NII) of 11per cent by the bank to Rs. 4234 million during the first six months of 2016 within the competitive interest rate environment that prevailed in the industry. Mr. Theagarajah commenting on the bank ambitious organic growth mentioned that is resolute in providing the best and most convenient banking experience to the bank’s clientele, through meaningful expansion of the branch network and technology enabled banking services. Meanwhile in an announcement to the Colombo Stock Exchange on Wednesday, non executive director NDB, Kimarli Fernando has said that her husband, Malik Fernando has bought 1 million shares in NDB.