NMB BANK VIES TO TURN AROUND TANZANIA WOMEN'S BANK

The outgoing Bank of Tanzania (BOT) Governor, Prof Benno Ndulu briefs journalists in Dar es Salaam, yesterday, regarding the bank decision to revoke business licence of five banks and placed three others under bird-eye watch for six months due to undercapitalisation. Left is Governor-elect, Prof Florens Luoga.

Bank of Tanzania said yesterday that NMB Bank has shown keen interest on turning around struggling Tanzania Women’s Bank (TWB).

The BoT outgoing Governor, Prof Benno Ndulu said the government, a sole shareholder, has invited a number of public institutions to invest in TWB. “NMB Bank has shown an interest to invest in this bank [TWB] targeting to turn it to a special lending window for women entrepreneurs,” Prof Ndulu said.

Prof Ndulu said TWB was among three other banks that submitted recapitalisation and sustainability strategic plans as required by the central bank by end of last year. Other banks are Kilimanjaro Cooperative Bank and Tandahimba Community Bank.

Prof Ndulu told journalists yesterday when handing over the office to the new appointed Governor Prof Florens Luoga. The three banks have been given six months up to June this year to implement their plans or face licence revoking.

The outgoing governor did not go into details on NMB and TWB deal mode of the operation but sources within the banking community told ‘Daily News’ that the letter of intent has already been issued and talks are going smoothly.

Nevertheless, TWB financials in Q3 last year were promising with deposits increasing by 14 per cent and non-performing loans dropping 6.0 per cent in three months—despite posting a loss of 610m/-. The women’s bank total customer deposits climbed up 14 per cent to 15.81bn/- in three months ending last September from 13.83bn/- in June.

BoT said Tandahimba entered into a three-year agreement with CRDB and already the bank was doing well and making some profit. On Kilimanjaro Cooperative Bank he said the bank shareholders—Kilimanjaro Cooperative Union—agreed on increasing core capital.

NMB, the second largest bank in term of balance sheet, is a pro-poor bank and strong expertise of lending the low earning income.

Daily News