Tag Archives: bank

When You Need Bill Consolidation

When You Need Bill Consolidation

You may come across dozens of advertisements who market the benefits of bill consolidation and try to lure you with several attractive offers like lower interest rate and quick approval. However, you should not take lightly the decision to consolidate your bills despite all such flashy commitments made by companies. A bill consolidation plan is the best alternative to overcome ...

Read More »

Things To Know Before Opting For Credit Card Consolidation Loan

Things To Know Before Opting For Credit Card Consolidation Loan

In past few years the peer-to-peer lending has been on rise as it bypasses the banking loan system easily and helps in organizing loans. P2P lending websites offer loans much faster and with much ease compared to banks. However, the interest rates charged in the new opportunity depends on the credit scores of the borrower. Usually it is a great ...

Read More »

Uganda: 46 million Stanbic shares on demand

Stanbic Bank returned to the fore of activity, selling 1,064,500 shares on Tuesday with turnover of sh32m after trading ended at an average price of sh30 per share. This was 85% of the day’s total traded value. There, however, remains overwhelming demand on the Stanbic counter, reaching 45.6 million shares on Tuesday. Demand is rising by the week as the bank is close to announcing its annual results alongside all listed companies as part of statutory requirements. Investors have, according to analysts, positioned to cash in on the post announcement dividend, a situation which has driven up the demand, although current shareholders are reluctant to give away their positions, creating the price mismatch. The New Vision traded at a high of sh605 and realised turnover of sh396,275, with 655 shares traded. The all share index, which is a barometer that compares the trading, closed at 1383.72 points. Four companies traded on Tuesday.  Overall, 1,080,164 shares exchanged hands with turnover at sh37.6m. Umeme sold 14,500 shares, picking sh5.2m in turnover. The utility company traded at an average of sh365 per share. Uganda Clays sold 509 shares at an average price of sh25, with turnover at a low sh12,725. Banking remains attractive as listed banks maintain a steady level of liquidity in a market where liquidity has, to a large extent, dried up while trading volumes are quite low. Commercial banks are, however, still grappling with restoring the uptake of commercial loans that dried up and continues to recover slowly following the double digit inflation that peaked over 30% about two years ago. The inflation pushed up borrowing rates. Source The New Vision

Read More »

NMB e-banking eases congestion

The National Microfinance Bank (NMB) said its recently introduced internet banking system is showing positive results in reducing queuing at bank branches. NMB Head of Transactional Banking Mr Gerald Kamugisha, told reporters in Dar es Salaam that the internet system had become a significant in efficient provision of service to the customers. “The internet banking system has started to show fruits due to reduced queuing at various NMB branches across the country,” he said at the official launch of the system. He said that the internet banking system was not only bringing the services closer to the people but also a necessary step in reducing time lost in queuing. “NMB internet banking guarantees customers the most efficient and secure service delivery in time,” he said. “The internet banking allows an effective financial management anytime, anywhere where clients, both public and private enterprises will no longer have to visit NMB branch for undertaking banking transactions,” he said. With the initiative, NMB customers particularly, small, medium and large scale entrepreneurs across the country will be the first beneficiaries of the system thus reducing the hidden costs and risks of moving from where the business is stationed to the nearest branches. He mentioned some of the services to be pursued under NMB internet banking as viewing balances and downloading of account statements, transfer of funds between NMB accounts, making third part and international payments as well as the Tanzania Inter-bank Settlement System (TISS) payments like taxes. Source Tanzania Daily News

Read More »

NIC Bank Tanzania to raise capital by 8.5bn/-

NIC Bank Tanzania will benefit from 8.5bn/- additional capital from its shareholders to the bank’s lending capacity targeted to corporate and Small Medium Enterprises (SMEs). The funds will be disseminated in two tranches of 5.8bn/- with the injection of additional capital from NIC Bank Kenya in December 2013, with the 2.7bn/- balance from the other local shareholders of NIC Bank Tanzania expected within a period of six months but not later than June 2014. “A growing financial need in this market has required that NIC Bank Tanzania further grow its competitive position. The capital will be used to fund the Bank’s business plan in the coming year with the aim of growing our market share with a focus on corporate and SME lending,” said Mr Pankaj Kansara, NIC Bank Tanzania Managing Director. NIC Tanzania is banking on the emerging opportunities in asset finance, trade finance and infrastructure project financing to increase its market share, driven by an improved business framework that has helped attract foreign direct investments and spur SME growth. “The capital-injection scheme is an appropriate, necessary and proportionate means of stabilising the institution and will also enable us increase lending to the Tanzanian market across the corporate and SME segments”, added Mr Kansara. “This additional capital will partly finance the growth of the anticipated loan book for 2014 and is expected to cushion the bank’s undertaking in respect to its Non-Performing Loan book”, explained Mr Kansara. NIC Bank Tanzania has grown its balance sheet from 30bn/- in 2009 to 180bn/- in 2013, representing an annualized growth of 43 per cent. “Looking at the success of our parent company, we hope to leverage on these strengths and replicate the product offering in the Tanzania market where applicable, while exploiting the available resources at the Group level to develop even more targeted products to grow our presence,” said Mr Kansara. “We are pleased by the demonstration of confidence by the bank’s shareholders through their decision to inject additional capital,” added Mr Kansara. “The shareholders remain committed to the bank’s operations in Tanzania and see growth opportunities arising from the integration of the East African Community. This capital injection will support our operations, taking into provision the bank’s Non-Performing Loan book,” concluded Mr Kansara. In 2013, NIC Bank Tanzania undertook a very successful rights issue of 8.5bn/- with the parent company increasing its shareholding to 68.97per cent. The Bank operates on a fully integrated system, offering a seamless cross border platform and in support of corporates operating within the East African Community block. Source Tanzania Daily News

Read More »

NMB bags 132.5bn/- profit

The National Microfinance Bank (NMB), has posted a staggering net profit of almost 132.5bn/- for its operations last year, mainly pushed up by net interest income. The pro-poor bank, which has the widest network coverage of branches and ATMs, posted a net profit of 36.5bn/- at the quarter ended December 2013, doubling from 17.2bn/- of the corresponding period a year before. The profit was mainly attributed to net interest income that generated 328.09bn/- last year against 278.6bn/- in 2012. The revenue from loans proceeds was driven up by expansion of the loan portfolio, which grew to 1.63tr/- from 1.50tr/- of the previous year while customer deposits rose to 2.55tri/- from 2.58tri/- of the previous quarter. While prudent lending seems to have helped the bank to maintain lower non-performing assets (loans), below the industry rate, at 2.06 per cent, although is slightly up from 1.93 per cent of the previous quarter. The NPLs were down by almost 5bn/- to 25.8bn/-. The bank assets grew by 4.17 per cent to 3.29tr/- while customer deposits reached 2.55tr/- at the end of last year. In 2005, the bank was privatised and partly divested its shareholding 49 per cent to a consortium led by the Coˆperatieve Centrale Raiffeisen- Boerenleenbank BA (‘Rabobank Group’). In 2008, the government offloaded its 30 per cent shares to the general public in an initial public offer (IPO) and NMB staff. In the meantime, CRDB bank net income increased to 20.37bn/- in the quarter ended December last year compared to 20.11bn/- of the corresponding period 2012. Similarly the profit for the year jumped to 84.2bn/- from 77.8bn/- registered at the end of 2012. The outstanding performance of the profit is attributed to the increase in net interest income to 234.6bn/- in the period under review from 206.15bn/- of the corresponding quarter in 2012. The loans, advances and overdrafts jumped up to 1.98tri/- in the quarter in question compared to 1.90 recorded in the previous period. Similarly, customer deposits increased to 2.99tri/- compared to 2.85tri/-. Source Tanzania Daily News

Read More »

SMEs need to be considered in public tenders, says BDF boss

Established in 2011, the Business Development Fund’s mandate is to facilitate Small and Medium Enterprises with access to finance by acting as a credit guarantee facility. Innocent Bulindi explains a point during the interview. He says BDF will ensure that all people who want to access loans for business get them. T. Kisambira. The New Times’ Collins Mwai spoke to the CEO of the institution, Innocent Bulindi for insights on what role the institution has played in developing a private sector led economy and below are the excerpts. Business Development Fund facilitates access to finance for Small and Medium Enterprises, how does one qualify for the funding? To qualify for funding through BDF, the only requirement is that the project is viable after going through the bank’s appraisal process. If the bank believes your project can repay back the loan, you qualify. We have no preferences or discrimination on the types of projects that qualify for funding or preference of groups to individuals. We work with all sectors in our bid to build a private sector led economy. It so happens that agriculture is dominant, but we also support non-agricultural projects. We have also identified that youth and women need financial capital and we want to ensure that they get it. There is a general perception that for one to qualify for support from BDF, they must be having established projects. Is there a chance that start-ups can get support too? We also support start-ups on top of existing projects. The challenge at times is that banks and financiers are not willing to put their money into start-ups. They  are usually looking for a track record. If you have no prior experience or proven record, the risk is perceived to be higher which lowers start-ups chances of getting funded. If it is an existing establishment that has prior records, the chances are usually higher. As a credit guarantee facility, we have intervention mechanisms to see to it that projects that would have otherwise not been funded get funded. We are in the business of transferring risks. We take on the risks by guaranteeing the bank. We are trying to move it from collateral lending which tends to be biased to alternative forms of collateral. We have an indirect guarantee model where it is up to the lender appraise, if they are viable, we have an agreement with the lender that we are guaranteeing the project. Briefly take us through the process from when a client has a potential project to when he or she gets funded? For now, one doesn’t have to come to BDF offices for funding. Lending should be convenient and about proximity. One only needs to walk to the lender (bank, Sacco, or any micro finance institution) closest to them...

Read More »