africatodayonline.blogspot.com -
NIC Bank has lined up Sh451.4 million in additional capital to stabilise and boost the lending capacity of its ailing Tanzanian unit.
NIC-Tanzania which saw its earnings drop from Sh50million in 2013 to Sh15 million in 2012 also expects the capital injection to shield it against the risk of non performing loans.
"This additional capital will partly finance the growth of the loan book for 2014 and is expected to cushion the bank's undertaking in respect to its non-performing Loan book," said the firm's Tanzania managing director Mr Pankaj Kansara.
NIC Bank joined the Tanzania market in 2009 by acquiring a 51 per cent stake in Savings & Finance Commercial Bank.
It was later renamed NIC Bank Tanzania and currently has branches in Dar es Salaam, Arusha, Mwanza and Kahama.
NIC has already advanced the Tanzanian entity Sh308.1 million, with the remainder expected to be raised by the local shareholders by the end of June.
