One of Malawi’s major banks, FDH, has invested US$4.8m (about K1.3 billion) towards expansion of the bank’s operations.
The funds have been raised by the bank’s shareholders, FDH Financial Holdings Limited, according to a press statement.
“The Board of Directors of FDH Bank Limited is pleased to announce the injection of US$4.8m into FDH Bank Limited by its shareholders FDH Holdings Limited to increase the capital base for the bank,” a statement made available to Nyasa Times said.
Signed by the Board Chairman Dr Eric Sankhulani, the statement says this additional capital will enable FDH Bank to comply with Basel II capital adequacy requirements starting 1st January, 2014.
The bank further says the investment would it towards its growth while cushioning its capital base.
“The capital will allow the bank to continue growing while providing first class banking services,” it says.
FHD Bank was established by former National Bank of Malawi top management official Thom Mpinganjira and is one of the fastest growing financial institutions in the country with 12 branches.
In July last year, the bank recruited former Standard Bank Head of Corporate Affairs, Phillip Madinga, to become its Chief Executive Officer.