Bahrain Islamic is a small retail bank that said last July it planned to raise about BHD54 million ($143.2m) in additional capital.

It posted a 2010 net loss of BHD39m as it wrote down some property investments and booked impairment provisions.

“Due to market conditions that are beyond the bank’s control...the bank’s board of directors has resolved in its meeting on Sunday 6 March 2011 to postpone the rights issue,” it said in the statement.

It said the issue that was scheduled to take place between March 9-23 would be completed before the end of June.

Last month, Kuwait’s Investment Dar, owner of half of luxury carmaker Aston Martin, proposed to creditors a sale of its 40-percent stake in Bahrain Islamic as part of its restructuring plan.

Bahrain Islamic made no direct reference to the unrest in its statement, but bankers and analysts say the political trouble will make it more difficult for Bahraini banks and companies to raise capital.

Ratings agencies have downgraded Bahrain, citing the unrest, and its tourism sector has been badly hit.