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Pan Asia Bank (PAB) will go in for a rights issue of 13.75 million shares at Rs.8 per share as part of its capital restructuring program in June. They will be 'partly paid shares' which has a par value of Rs. 10.

"We are planning to raise about Rs. 110 million by this issue to strengthen the capital base of the bank and to maintain the capital adequacy ratio above the required minimum levels," General Manager, Pan Asia Bank, R. Nadarajah told the Daily News yesterday.

The allocation of shares will be on the basis of 'one for every four shares held' to its existing shareholders. Some Malaysian investors have also shown interest in investing in Pan Asia Bank, which is being studied.

The bank will seek a quotation on the Second Board of the Colombo Stock Exchange (CSE) before the rights issue and the application will be Made during May, Nadarajah said. "We will be sending circulars to our shareholders informing them of the rights issue soon," he said. The bank has also informed the Central Bank about the proposed rights issue to improve its capital adequacy ratio. Pan Asia Bank as a Commercial Bank is under the close supervision and monitoring of the Central Bank of Sri Lanka.

The PAB experienced a setback in 2001 due to unfavourable economic conditions in the country, which resulted in its recording an operational loss of Rs. 59 million in the financial year 2001. According to the pending 2002 annual report, the bank has improved its financial position with a Rs. 59 million operating profit," Nadarajah said.

The Bank in its efforts to add convenience to its customers has introduced the state of the art ATMs in six locations from this month. The bank will also be installing a further four ATMs in selected locations. The bank is striving to maximise its services to its clients through its network of 13 branches which are all online, Nadarajah said.

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