SBAC Bank doubles authorised capital

South Bangla Agriculture & Commerce Bank Limited has decided to double its authorised capital.

Now, the authorised capital of the private commercial bank would be Tk 2,000 crore from Tk 1,000 crore.

For this purpose, it is decided to replace the capital clause of the bank's memorandum of association and articles of association, said the bank in a post on the Dhaka Stock Exchange today.

Authorised capital refers to the maximum number of shares a company is legally allowed to issue or offer based on its corporate charter.

The board of the bank has also decided to shorten the name from "South Bangla Agriculture and Commerce Bank Limited" to "SBAC Bank PLC" as a limited liability public limited company.

For this purpose, it is decided to replace the name clause of the bank's memorandum of association, said the post.

In Bangladesh, the companies are switching to the PLC suffix in order to comply with the amended Company Act 1994. The amendment was made in 2020.

A PLC is a public company and is the equivalent of a US publicly traded company that carries the Inc. or corporation designation.

The use of the PLC abbreviation after the name of a company communicates to investors and to anyone dealing with the company that it is a publicly traded corporation.