The Daily Corporate Desk
Dhaka, 29 August 2026: Mutual Trust Bank (MTB) has decided to raise Tk 500 crore in capital by issuing either Islamic Shariah-compliant or conventional bonds with a tenure of seven years.
The decision was approved by the bank’s board on August 25, according to a disclosure published on the Dhaka Stock Exchange (DSE) website. The proposed bond issuance, however, will require approval from the relevant regulatory authorities.
The move comes as the private commercial bank seeks to strengthen its capital base amid rising funding costs and pressure on profitability.
MTB’s share price fell 0.75 percent to Tk 13.30 on the DSE by 1:00pm on August 27.
Profit falls 42%
Meanwhile, MTB reported a significant decline in profitability for the April-June quarter of 2026.
According to the bank’s financial statements, its quarterly profit fell 42 percent year-on-year to Tk 18.67 crore, primarily due to higher interest expenses on deposits and borrowings.
The decline highlights the growing pressure on banks’ profitability from elevated funding costs.
Sponsors and directors hold 33.26% stake
As of July 31, 2026, sponsors and directors collectively held 33.26 percent of MTB’s shares, according to DSE data.
The remaining shares were held by institutional investors and the general public.
The proposed Tk 500 crore bond issuance is expected to provide MTB with additional capital to support its balance sheet and strengthen its capacity to finance future business growth, subject to regulatory approval.
Source: The Daily Star
