NBS Bank shareholders Thursday took to task the executive management of the bank over what they called lack of policy direction.

The shareholders speaking at an
Emergency General Meeting held in
Blantyre said frequent change of top
management is contributing to the
bank’s poor performance for years
now.
Last year, the bank made a loss of
K195 million and is this year projected
to make a 20 percent of last year’s.
Apart from making the losses, the
bank is also facing a daunting task to
meet the Reserve Bank of Malawi’s
capital requirement under Basel II of
capital and total capital ratio to be at 10
and 15 percent respectively. The
deadline for this compliance has been
extended from December this year to
April next year.
One of the shareholders, Jeff Gondwe,
said it is the top management which is
responsible for policy formulation,
hence keeping on hiring and firing
results in inconsistency.
“If both the Chief Executive and the
Deputy go away as it has been the
case at NBS bank, it affects
performance of the bank. There are a
lot of banks in Africa and outside that
have actually been closed because of
lack of proper management. So it is a
matter of great concern to us the
shareholders and we hope there will
be consistency at the top this time
around,” said Gondwe.
He also attributed failure of the bank to
collect K9 billion toxic loans to
executive management change.
“The bank has not been doing very
well at all and we are not very happy.
There have been K 9 billion toxic loans
and to us this shows that the bank is
not efficient. This is why I asked the
questions are these loans
recoverable? Because if we can
recover [the loans] the bank will be
liquid,” he said.
The bank’s Chairman, Vizenge
Kumwenda, while admitting that there
have been changes at the top, assured
the shareholders that things will
change.
“The observation has been noted and
be assured that we will strive at
improving things for the better. In fact,
we are driving at getting back to be
among top three banks in the country.
On the toxic loans, we have set up a
special unit specifically to recover the
loans,” said Kumwenda.
He also disclosed that they have put
stringent measures for those
accessing loans to avoid granting
loans to people or companies that will
default.

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