Bank of Commerce, now majority owned by San Miguel Corp., will increase its authorized capital stock to P10 billion from P4 billion and has sought universal banking license from the Bangko Sentral.

?Our board approved in a meeting last February the increase in our authorized capital from P4 billion to P10 billion,? Bank of Commerce president Raul de Mesa told reporters. ?We have a pending application with the BSP for a universal bank license.?

Bank of Commerce?s assets stood at P90.48 billion at the end of September, with loans of P40.4 billion and deposits of P72 billion.

Bank of Commerce mapped out an expansion plan in the middle of last year through a build-up in capital.

It planned to raise additional capital last year by raising tier 2 capital or hybrid tier 1 notes. De Mesa said the bank had dropped its plan to issue tier 2 notes.

He said an increase in the bank?s additional capital would need the approval of shareholders in a special stockholders? meeting. Bank of Commerce will submit documents to regulators such as the Bangko Sentral and the Securities and Exchange Commission to get their approval for the increase in capital.

Bank of Commerce earlier sought an increase in authorized capital to just P6 billion to accommodate San Miguel?s subscription of its shares.

San Miguel Properties Inc. and San Miguel Retirement Fund put in P2 billion in the bank as equity. De Mesa said San Miguel invested another P500 million in the bank last year, representing the first portion of the second subscription that scheduled by the end of 2008.

San Miguel plans to put in a total of P4 billion in the bank, representing about 51 percent of its expanded capital. Bank of Commerce plans to upgrade into a universal bank to enable it to go into non-allied activities, such as property development and insurance.

Bank of Commerce has signed an agreement with San Miguel Properties to buy its receivables from existing buyers.

De Mesa earlier said the purchase of receivables from developers would be among the bank?s strategies for growth.

Bank of Commerce, however, does not plan to go into the credit card business, except on a very focused basis, unlike other banks.

De Mesa also earlier said the bank would purchase another bank if the opportunity arose.

San Miguel?s entry in Bank of Commerce diluted the stake of the bank?s previous shareholders to 64 percent. San Miguel Properties and San Miguel Retirement Fund infused a combined P2 billion into the bank, P1 billion of which was deposited in the bank for the subscription of shares. Eileen A. Mencias