Karafarin Bank’s Capital reached IRR40 trillion

The Bank’s Extra Ordinary General Assembly on Wednesday 16 September 2020 was held in presence of over 76% of the shareholders whose majority ratified capital increase by 365%, Public Relations Department reported. Based on this report, with the approval of the majority of shareholders, Karafarin Bank intends to increase its capital within two stages to reach IRR40 trillion.
In the first stage, the capital shall increase by 217% to reach IRR26,843 billion and shall be paid for, by revaluating its assets and other reserves. Furthermore, it has been decided that in the second stage capital to increase by 149% which is to be paid for via matured claims and cash paid by the shareholders. This stage shall be completed within a maximum period of two months.
It is noteworthy that request for capital increase to the Central Bank of the Islamic Republic of Iran (CBI) and the Securities & Exchange Organisation on 7 June of the current year had been approved by the said authorities.
The objective behind increasing the Bank’s capital is to improve and enhance operational ratios, boost the Bank’s capabilities in unitlising resources and granting loans as well as increasing the Bank’s market share, which should ultimately boost profitability, improve the Bank’s financial structure and reduce its risk.
This report states that since the formation of Karafarin Bank until 2014-15, its capital has been increased within eight stages from IRR350 billion to reach IRR8,500 billion.