The Registrar of Financial Institutions has directed that Indebank operations be merged into National Bank of Malawi (NBM) operations within 12 months effective November 1 2015.
This is in accordance with the country’s Financial Services Act, which does not allow a commercial bank to own or operate another commercial bank.
NBM was announced successful bidder in April this year by the Public Private Partnership Commission (PPPC) which desired to see Indebank continue as a standalone commercial bank rather than being absorbed into NBM.
PPPC chief executive officer Jimmy Lipunga told the media then that the equity investor will be required to inject additional capital to satisfy the Base II supervisory provision as required by the regulatory authority, the Reserve Bank of Malawi (RBM).
However, NBM has since completed the transaction regarding the acquisition of 67.05% of Indebank Limited from Malawi government and Admarc.
“Subsequent to this acquisition, National Bank of Malawi was offered and has just completed the purchase of the 30% shareholding held by Press Trust in Indebank. As a result of these transactions, National Bank of Malawi now owns 97.05% shareholding in Indebank Limited, with the remaining 2.95% being owned by staff of Indebank through an Employee Share Ownership Scheme (ESOS).
“To facilitate a smooth merger, the 2.95% ESOS shares in Indebank will be swapped for National Bank of Malawi shares after all the necessary procedures are completed,” said Company Secretary, Z.E Mitole.
NBM is one of the leading commercial banks in Malawi with network of over 30 service centres and also listed on the Malawi Stock Exchange (MSE).