KUALA LUMPUR (Nov 3): RHB Bank Bhd and Boost Holdings Bhd have raised the paid-up capital of its 40:60 digital bank joint venture Boost Bhd by RM85 million to continue meeting the minimum capital funds requirement of RM100 million unimpaired by losses.

For this purpose, RHB has subscribed to 34 million new shares in Boost Bhd at RM1 apiece for RM34 million, while Boost Holdings – the 75.43% unit of Axiata Group Bhd – subscribed to 51 million new shares for RM51 million, RHB and Axiata said in company filings on Friday.

Boost Bhd is set to launch as one of Malaysia’s five digital banks by end-2023, according to reports in May.

The others are GXBank, a consortium between Grab Holdings Ltd, Singapore Telecommunications Ltd (Singtel), Kuok Group and other Malaysian investors; and a consortium led by Singapore’s Sea Ltd and YTL Digital Capital Sdn Bhd, part of YTL Group.

Two of them were given the nod to set up Islamic digital banks, namely a consortium led by KAF Investment bank Sdn Bhd; and a consortium of AEON Financial Service Co Ltd, AEON Credit Service (M) Bhd and MoneyLion Inc.

The licences were awarded by Bank Negara Malaysia in April 2022, following a six-month application period initiated at the start of 2021.

Aside from the net capital fund requirement of RM100 million, a digital bank would have a cap of its total assets of RM3 billion during its 3-5 years foundational phase, according to Bank Negara Malaysia’s digital bank licence framework.