The Board of Directors of Habib Metropolitan Bank Limited has approved an increase in the authorized and paid-up capital of two of its wholly owned subsidiaries, signaling a move aimed at strengthening operational continuity and supporting future business requirements. The decision was disclosed to the stock exchange on Friday following a board meeting held on February 12, 2026.
According to the official notice submitted to the local bourse, the board approved an enhancement in the capital of HabibMetro Exchange Services Limited from Rs1 billion to Rs1.5 billion. The subsidiary, which operates as a 100 percent owned entity of the bank, will see its authorized and paid-up capital rise by Rs500 million. The disclosure clarified that the increase is intended to ensure smooth operations and reinforce the subsidiary’s financial capacity.
In its formal communication, the bank stated that the Board of Directors of Habib Metropolitan Bank Limited, in its meeting held on February 12, 2026, approved the enhancement in the authorized and paid-up capital of HabibMetro Exchange Services Limited from the existing Rs1,000,000,000 to Rs1,500,000,000. The move reflects internal capital alignment within the group structure, enabling the exchange services arm to sustain operational requirements and meet business obligations effectively.
Alongside this decision, the board also approved a capital increase for another wholly owned subsidiary, Habib Metropolitan Financial Services Limited. The capital of this entity will be raised from Rs300 million to Rs500 million. As with the exchange services subsidiary, the bank indicated that the objective of the increase is to support smooth and uninterrupted operations.
Capital enhancements within subsidiary structures are commonly undertaken by banks to reinforce balance sheets, maintain regulatory buffers, and accommodate expanding operational needs. While the disclosure did not specify expansion plans or new product lines, the approved increases suggest a focus on ensuring that both subsidiaries are adequately capitalized to manage current and prospective business volumes.
The capital increases remain subject to relevant regulatory approvals, as required under prevailing banking and corporate governance frameworks. Such approvals typically involve oversight by financial regulators and adherence to compliance standards applicable to subsidiary operations within the banking sector.
Habib Metropolitan Bank Limited’s decision comes at a time when financial institutions are reinforcing capital positions to maintain operational resilience amid evolving market conditions. Strengthened subsidiary capitalization can support liquidity management, transaction capacity, and service delivery, particularly in exchange and financial services segments that require stable financial backing.
The disclosure to the stock exchange underscores the bank’s adherence to transparency obligations under listing regulations. By formally notifying the market of board-level decisions affecting subsidiary capital structures, the institution ensures compliance with corporate governance standards and keeps stakeholders informed about structural developments within the group.
While the announcement primarily addresses internal capital restructuring, it reflects a broader emphasis on operational stability and institutional preparedness. Ensuring that subsidiaries maintain adequate authorized and paid-up capital levels is a fundamental component of financial sector governance, contributing to risk management and sustainable performance.
Subject to regulatory clearance, the approved enhancements will take effect in accordance with applicable legal procedures. The development marks a strategic internal adjustment within Habib Metropolitan Bank Limited’s group framework, reinforcing the operational foundation of its exchange and financial services subsidiaries.
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