Coop bank sells 85pc of stake

KILIMANJARO: PLANS to establish the National Cooperative Bank (NCB) have taken shape thanks to a new push that sees some 85.5 per cent of its share sold.

The new bank has managed to raise 17.1bn/- after selling shares out of 20bn/- planned to be collected ahead of its inauguration in less than two months and is championed by KCBL bank.

The KCBL General Manager, Mr Godfrey Ng’urah, said the 17.1bn/- worth of shares was sold to cooperatives, 8.7bn/-, institutions 1.9bn/- and individuals 6.5bn/-.

“We are confident to raise the targeted amount since several cooperatives have shown interest to buy shares…while CRDB plans to further invest in the bank,” Mr Ng’urah told ‘Daily News’ on Sunday.

NCB is set to revolutionise cooperative banking sector, offering enhanced financial services and support to cooperative unions and other economic entities throughout the country to drive growth and sustainable development. KBCL is driving the establishment of NCB and last year merged with Mtwarabased Tandahimba Community Bank (TACOBA), which was a significant step in the formation of the coop bank.

CRDB Bank has 20 per cent stake in envisaged cooperative bank through its capital investment to rescue former KCBL and TACOBA of 7.0bn/- plus additional funds.

“The investment [in KCBL and Tacoba] was given not as a loan but as part of the ownership. These shares plus additional funds will be included in the purchase of a national cooperative bank stake of 20 per cent,” CRDB Group Chairman Dr Ally Laay said in Moshi, Kilimanjaro recently when meeting with Parliamentary Standing Committee.

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