Shareholders of Oman-based BankMuscat have approved a proposal to raise capital through private placement of 15 per cent of its shares with Dubai Financial Group for RO238.3 million ($619 million). It is the single largest cross border investment in the banking sector in the region. DFG is the financial holding company for Dubai Group, a member of Dubai Holding, which belongs to the Government of Dubai. It has significant existing stakes in regional and global institutions such as Marfin Popular Bank, Thomas Cook India, Taib Bank and Dubai Bank. This proposed transaction has received "in principle" approvals from regulatory authorities in Oman, and is subject to the final approval of the regulatory authorities. Sheikh AbdulMalik bin Abdullah Al Khalili, chairman of BankMuscat, said: "This private placement will result in a substantial increase in the net worth of the bank. We intend to use these funds to support the overall asset growth and expansion plans of the bank both in the domestic market and overseas. The funds will also help us further strengthen our capital adequacy position, which will go up to 18.87 per cent, from the current 11.4 per cent levels." BankMuscat has just announced a 43.6 per cent increase in net profit to RO40.2 million for the half year ended 30 June 2007, from RO28 million for the same period in 2006. With assets worth over $9 billion, BankMuscat is the largest bank in Oman with a strong presence in corporate banking, retail banking, investment banking, treasury, private banking and asset management. The bank has a network of over 100 branches and 230 ATMs in Oman, a branch in Riyadh, Saudi Arabia, and a representative office in Dubai. BankMuscat also has a strategic stake in Centurion Bank of Punjab, a private sector bank in India and BankMuscat International an independent banking entity focused on becoming a Gulf regional bank.