PABC Rights Issue successful

CAPITAL: PABC Bank has been successful in mobilising capital by way of a Rights Issue in the proportion of one new share to every existing share at the rate of Rs. 10 each.

The share issue was opened on October 26, 2006 and closed on November 16, 2006. The additional capital by way of this Rights Issue came to Rs. 550m.

This has assisted the Bank to strengthen its capital base to Rs. 1100 m, including the capital funds which already existed as at September 30, 2006 as revealed in the publication of the financial statement for the period of nine months ended September 30, 2006.

This has also enabled the Bank to meet part of the new capital requirement set by the regulators and increased the capital adequacy ratio to about 17.3% for the Bank.

The additional capital will pave the way for the Bank to open new branches and expand its business and enhance its profitability in the year 2007.

The additional shares allotted under the Rights Issue has already been issued as on December 5, 2006.