Malawi bank NBS to lay off 300 employees by March 2017
NBS Bank, a subsidiary of conglomerate Nico Holdings Limited is in trouble. The Bank will be laying off close to 300 employees between now and March 2017, Nyasa Times can reveal.
Insiders said a culmination of bad debts which included one from its former Chairman retired Insurance guru Felix Mlusu of close to K200 million and other high profile debts has disturbed the company’s books and it has been left with no choice but to downsize staff.
Sources said those that are likely to lose their jobs are senior managers and middle managers while junior staff like Cashiers and bank clerks will be spared.
“It is no secret now that we are in the red and many employees are preparing themselves for the worst,” said a source.
Recently, the bank advertised in the local press the position of Chief Executive Officer following the retirement of the incumbent Bernadette Mandoloma.
Lack of information on the future of the bank has sent employees in panick mode and social media has been awash with rumours that the bank is going under.
Speculation is also rife that the bank will be bought by a French Company and this forced management to issue an interna memorandum to ensure the employees of their future.
“We have noted with concern the rumours that are circulating on social media that NBS Bank Limited has been bought by a French Company and that about 500 employees are earmarked to be laid off. Kindly be advised that this is not true,” reads the memo from the CEO to all members of staff dated December 1, 2016.
“We would like to assure members of staff that NBM Bank Limited has not been bought by any company. NBS Bank Limited remains a bank owned by NICO Holdings Limited,” reads the memo.
“We would like to urge you to desist from talking to the media about the Bank without getting prior authorization from the office of the Chief Executive Officer…We want to assure you that if there is any communication regarding the Bank operations and its status, we will communicate with you as we have done in the past through our internally instituted channels,” reads part of the memo.
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Analyst is out of order he writes about savngi culture pamene article ndi ya NBS Bank, silly useless senseless clueless man. Ndiponso these days who can afford to save. Salary zathu zikumatha pa 10of each month kwinako we just survive by the grace of God. Ukalandira ka salary kako kochepa uyang’ane za panyumba transport lunch relatives ndiye what can you save. We need to be realistic on these matter otherwise it is an insult to call on people to save when they are barely surviving
NBS is just a tip of the iceberg. Most banks are in trouble, but they can’t cry out loudly because they could lose customers. The real problem we have is the economy. The economy of Malawi is in trouble. There isn’t money in circulation. The statistics about inflation that it is going down do not reflect the reality on the ground. Things are very bad. NBS has sounded an SOS, next is bank iyo. Ndukuwuzani. Two successive droughts for Malawi, coupled with donor aid freeze and poor leadership under the Mutharika have left both the government and the private sector… Read more »
end-time-events
Shaaa. Too bad. So if every bank is closing or down sizing where do people go? Likewise if every org is closing wat do u xpect people to do? Is this also as a result of climate change? I don’t think so. WE REARLY HAVE A BIG PROBLEM.
Zonama izi Mr Mulusu was just a bad manager wamatama osatha ntchito busy flushing magalimoto koma does not owe NBS that amount.
osatha ntchito? shame on you
Iam not surprised many banks in Malawi will fall If foreign banks come in the country. NBS Bank used to be bank of mortgage during Kamuzu Banda. The Whole areas of 47, 12 and old 10 were NBS Bank loans. Interest was normal. To day not many borrow from NBS Bank to build houses. Why? 40% interest plus penalties Who can really manage with salaries of Malawi? Only Cash Gate money. Apart from interest of 40% Malawi Banks take big amount of charges from Savings Accounts. U save your money for safe keeping and The bank take every month. I… Read more »
End-times-event
Who-will-save-us!
The Malawi banking market is highly concentrated in terms of both major clients where one client effectively banks will all banks as well as one bank being the major provider of banking services to a number of important institutions. This is a serious risk. Because of the indispensable importance of the very few banks in place some important regulatory requirements have not been followed to the letter by banks and RBM has been passive… Let’s wait and see
Analyst is always a constructive commentator… Keep it up man