The NPF Microfinance Bank Plc said it has concluded plans to raise additional N3 billion from the Nigerian capital market by way of rights issue and public offer.

Mr Usman Isa Baba, the Chairman of the bank, made the disclosure at the company’s 21st Annual General Meeting (AGM) in Lagos.

Baba said that the offer would open before the end of the fourth quarter of 2015.

Addressing shareholders on Thursday, he said that proceeds from the offer would be deployed to shore up the capital base and ensure that the bank remained highly capitalised to transact more businesses.

Baba said that part of the funds would be used for branch expansion to major commercial cities in the country to boost operational profit.

He said that the bank would improve on the existing technology and payment system.

“Our strategic plan is on course and our resolve to deliver long term value to our shareholders remains unshaken.

“We have proposed that more shares be issued for subscription to the public before the end of the fourth quarter of 2015,” Baba said.

He called on both the existing and prospective shareholders to subscribe to the offer for enhanced returns.

At the AGM, shareholders approved a total dividend of N342.9 million which translated to 15k per share.

This is against 10k paid in 2013.

According to him, the bank’s total asset rose to N10 billion, an increase of 20 per cent when compared to N8.7 billion achieved in 2013.

The company in the year ended Dec. 31, 2014 posted gross earnings of N2.1 billion against N1.9 billion achieved in the corresponding period of 2013.

The company posted profit after tax of N477.8 million compared with N391.3 million in the comparative period of 2013.

Baba attributed the growth to the bank’s ability to access loans from the Bank of Industry (BOI) and the Central Bank of Nigeria (CBN) at concessionary rates.

He said that this had enabled the bank to empower its numerous customers.