AGRICULTURE DOMINATES CRDB BANK PORTFOLIO

CRDB Bank Managing Director, Dr. Charles Kimei

Despite the deliberate measures to reduce exposure to the agricultural sector, the sector continued to dominate the CRDB bank credit portfolio accounting for 20% of the total loan portfolio. According to the CRDB Bank Managing Director, Dr. Charles Kimei, loans and advances extended to the agricultural sector continued to be high compared to other sectors like trading, transport, manufacturing, hospitality and individual.

“For example, loans and advances to agriculture in the year ended 31st December 2013 amounted to TZS 378 billion, which is 20% of the total loan portfolio,” he told shareholders in the just ended CRDB Annual General Meeting (AGM) held in Arusha.

Dr. Kimei told reporters in a separate interview that the bank recognises the significance of agriculture to the economy, particularly its contribution to poverty alleviation and thus would continue extending loans and advances to the sector.

The growth of in the loan portfolio was lower than the achievement in 2012 due to deliberate decision by the bank to consolidate the credit portfolio by slowing down lending and continuing to reduce the exposure to agriculture sector which in the past four years has become the most risky lending area.

Similarly, the year under review has witnessed an improvement in the quality of the loan portfolio. The non performing loans ratio was 6.2%, down from 6.8% in the previous year.

“The notable improvement is a result of strengthening credit administration within the credit department and the introduction of a credit unit at each branch as well as a manager to oversee it,” he added.

Also, the bank is working with 18 microcredit companies which are community based and experienced in delivering financial services to low income earners in the country.

Farmers have been reached by using their grassroots organisations like the Agricultural Marketing Co-operative Societies (AMCOS).

For example, about 225 AMCOS with 67,537 individual clients were reached and linked to access financial services from the bank. The total deposits mobilised by these microfinance institutions reached TZS 212 billion, marking a 66% increase from TZS 128 billion the previous year.