Shahr Bank is growing its capital to over double its current amount, said the lender’s chief executive.
Hossein Mohammad Pourzarandi said, Shahr Bank (City Bank) intends to increase its capital by over a 100 percent, bringing the Tehran based lender’s nominal capital to 16 trillion rials ($481.6 million at market exchange rate).
Shahr’s current equity is 7.9 trillion rials ($237.8 million). It is mainly owned by municipalities – especially Tehran Municipality – and their staff. It is privately owned and its shares are not listed on any of Iran’s stock markets.
Shahr intends to use its revenues from its banking services to pay dividends and the revenues from its subsidiaries to increase its capital, said its chief executive. Shahr has subsidiaries working in construction, insurance, leasing, brokerage, foreign exchange and financial technology.
The lender is growing rapidly and is offering 24 hour banking services throughout its special branches, using virtual teller machines.
The bank has had a turbulent management record, with an average chief executive retention period of less than two years. Pourzarandi is the third chief executive of the bank in office since 2014, formerly serving as Tehran Municipality’s finance deputy.
