Commercial Bank raises capital by Dh172m

Dubai: The Commercial Bank International (CBI) has increased its capital by Dh172 million in the second phase of its strategic move to financially streng-then itself.

CBI's capital presently stands at Dh828 million.

The bank is preparing to boost its capital to Dh1 billion by March 18, which will be a substantial increase from the Dh479 million CBI had started with.

Khamis Buharoon, chief executive officer of CBI, said, "The bank declared stock dividends of 60 per cent to its shareholders in 2005, which raised the capital from Dh299 million to Dh479 million. This 60 per cent dividend is considered to be one of the best in the market and places CBI at the top rung in the banking industry of the country."

The planned increase in capital from Dh479 million to Dh1 billion will happen in three tranches.

The first tranche saw CBI's capital rise by Dh177 million on September 17 last year.

The second rise of Dh172 million was done on December 17.

The final increase of Dh172 million is scheduled to take place on March 17.