NRBC Bank to inject Tk100cr into securities subsidiary to ease debt burden

NRBC Bank PLC has decided to invest an additional Tk100 crore in its subsidiary, NRBC Bank Securities Limited, to reduce the brokerage firm’s high-cost debt burden and strengthen its financial position.

The investment will increase the subsidiary’s paid-up capital to Tk144 crore from the existing Tk44 crore.

Following the announcement, shares of NRBC Bank rose 1.08% to Tk9.40 on the Dhaka Stock Exchange (DSE) today (10 November).

The bank’s board of directors approved the investment at a meeting held on 9 November, according to a disclosure published on the Dhaka Stock Exchange (DSE).

Under the plan, the bank will subscribe to 10 crore ordinary shares of NRBC Bank Securities at Tk10 each within the next 30 days.

The proposed investment was earlier approved unanimously by the shareholders of NRBC Bank Securities at an extraordinary general meeting (EGM) held on 9 September.

Currently, NRBC Bank Securities has outstanding loans of more than Tk100 crore, carrying an interest rate of around 15%, putting considerable financial pressure on the brokerage firm. The fresh capital injection will primarily be used to repay these loans and reduce interest expenses.

Rashedul Islam, chief financial officer of NRBC Bank, told The Business Standard that the brokerage subsidiary was currently struggling with a substantial debt burden.

“Our brokerage house has more than Tk100 crore in loans, on which it has to pay around 15% interest. We want to reduce this burden and provide the company with financial relief,” he said.

“That is why we have decided to increase its paid-up capital from Tk44 crore to Tk144 crore. The company will be able to repay its loans with the fresh investment, reducing its interest expenses and allowing it to operate on a more financially sustainable basis,” he added.

Meanwhile, NRBC Bank reported an improvement in its consolidated financial performance during the first nine months of 2026, although its earnings declined in the July-September quarter compared with the same period last year.

According to its unaudited financial statements, the bank’s consolidated earnings per share (EPS) rose to Tk0.58 during January-September 2026, up from Tk0.10 in the corresponding period of 2025.

However, its consolidated EPS stood at negative Tk0.03 in the July-September quarter, compared with positive Tk0.01 in the same quarter last year.

The bank attributed the improvement in nine-month earnings mainly to higher income from investments and a reduction in the provision for taxation compared with the corresponding period of the previous year.

Its consolidated net operating cash flow per share increased to Tk11.46 during January-September 2026, from Tk11.20 in the same period last year.

The bank said the improvement was driven by higher receipts from other operating activities and lower disbursements of loans and advances.

Meanwhile, its consolidated net asset value per share rose to Tk17.47 as of 30 September 2026, from Tk16.74 at the end of December 2025.

The increase was attributed to growth in retained earnings and statutory reserves, according to the disclosure.

The additional investment is expected to reduce the subsidiary’s dependence on borrowing and ease its interest expenses, helping strengthen its financial position.