PRIME Minister Kassim Majaliwa has commended TIB Corporate Bank (TIB Corporate) for doubling its working capital from 206bn/- in 2015/2016 to 409bn/- in 2018/2019.
The Premier showered the praises here yesterday when officiating at the launch of TIC Corporate’ Capital Branch in Dodoma, the capital city of Tanzania. He was also impressed that deposits by customers tripled from 110bn/- to 338bn/- during the period under review.
“It is as well worth noting that the bank has been extending credit facilities at affordable interest rates of between nine and 15 per cent. “This is very reasonable given the fact that there some banks which have rates of up to 22 per cent,” Mr Majaliwa noted.
He, however, urged the bank to focus more on ordinary citizens, including cotton farmers in Lake Zone regions to boost farming of the cash crops, given the fact that only 16 per cent have access to financial services.
Earlier, Deputy Minister for Finance and Planning, Dr Ashatu Kijaji, commended the bank for reducing nonperforming loans to just 5.43 per cent against the average of 11.1 per cent in the financial sector.
The Bank of Tanzania (BoT) requires that bad loans should not exceed 5 per cent of all issued loans. Speaking earlier, the Managing Director of TIB Corporate, Mr Frank Nyabundege, said the financial institution had dished credit facilities amounting to 224.35bn/- to public institutions during the current financial year.
Part of the funds was extended to the economic wing of National Service-SUMA JKT, for revamping the cashew nut processing plant in Lindi region.
Mr Nyabundege mentioned other entities which benefited through the loans as TTCL Corporation, Medical Stores Department (MSD) in addition to Tanzania Railway Corporation (TRC), Tanzania Civil Aviation Authority (TCAA), Tanzania-China Friendship (Urafiki) Textile Mills and Bariadi District Council.
“These loans enabled the public organizations to undertake development projects without depending solely on subsidies from the central government,” he explained.
The MD noted further that the bank has entered into agreements to provide credit facilities amounting to 130bn/- during the next fiscal year to public organizations.
Last year, the bank recorded a gross profit of 1.3bn/- after which it provided 250bn/- as dividend to the Treasury coffers, he stated. Speaking at the same occasion, the Board Chairman of TIC Corporate, Mr Augustine Mbogela, assured the PM that the bank will provide 300m/- to the Treasury coffers this year as dividends.
The launch of the Capital branch in Dodoma brings a total of seven branches operated by TIB-CBL across the country. Three branches are in Dar es Salaam while Arusha, Mbeya, Mwanza and Dodoma have one branch each.
According to the MD, the new branch in Dodoma is designed to serve customers in the central regions namely Dodoma, Singida and Tabora.
TIB Corporate is a subsidiary of TIB Bank Limited which is charged with providing loans to public and private organizations to enable the country to achieve semi industrialized economy by 2025.