National Bank of Malawi given 12 months to absorb Indebank operations

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.

Inde Bank now under National Bank of Malawi

Inde Bank now under National Bank of Malawi

National Bank of Malawi

National Bank of Malawi

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).

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6 thoughts on “National Bank of Malawi given 12 months to absorb Indebank operations”

  1. Mtembozude says:

    Ubwino wake ku Indebank kulibe akazi ochita kudabwitsa, mabwana a NBM atotelatu, kupukusa michira, anakakhala akazi FMB bwenzi kuli kumaternity bank kumeneko. Good luck osawatsa matenda akaziwo, kumawachinda mwa size

  2. c ngoleka says:

    NBM only born agains here! Kapena ukufuna ntchito

  3. Chatsalira says:

    Was it necessary for National Bank to acquire a local bank?

    I would have thought they should be extending their presence in other countries may starting with SADC countries.

    National Bank afraid of testing foreign markets.

  4. Therere says:

    expect retrenchment and closure of some branches

  5. chimwemwe says:

    Only banks are making profits in Malawi through obscene profits with high interest rates and overcharging on forex. RBM is toothless and watching without doing there jobs. RBM help make banks make profits and poor malawians suffer while

  6. Chechumu says:

    your friends at FDH are almost done with integration. Inu mukosowa poyambira. These things need brains koma ku NBM too much chasing skirts even by bosses.

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