TANZANIA Women Bank (TWB) has given 14 days to its defaulters to settle their outstanding loans or risk auctioning of their properties.
The bank order was issued mid last week and sent to 77 defaulters most of them owning houses in Dar es Salaam. The notice said the bank notified lenders and their guarantors that those who failed to settle their debts would have their houses auctioned.
“...The bank shall sell the said properties that were deposited as collateral though an open auction,” the notice published on ‘HabariLeo’ showed. According to the notice, 90 per cent of the properties risking to be auctioned are in Dar es Salaam, and seven are in the Coast Region.
This seems the first time a bank intends to auction the defaulters’ properties at a go after borrowers failed to settle their dues. TWB in recent months has experienced escalating non-performing loans to affect their profitability.
In quarter three of this year the Women Bank posted improved performance despite losses while recording a declining non-performing loans and growing assets. The bank posted 610m/- loss in the third quarter of the year, according to financial statement made publicly this week, but it recorded strong performance in assets, deposits and nonperforming loans.
The bank in Q3 wrote off a number of bad debts to clean balance sheet. This saw NPLs decreased by 6 per cent to 7.77bn/-. Also, the NPL ratio to total gross loan dropped to 51 per cent from 53 per cent.
DailyNews
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