Nairobi — I&M Bank is set to expand its operations to Tanzania. The bank's spokesman, Mehboob Champi, says in a statement that the Tanzanian operation should be up by the end of the year. Over the years, the Bank has gradually established a firm financial base.

With a paid-up capital of Sh1,000 million, the core capital is currently well over Sh1.6 Billion.

I&M posted a pre tax profit for the year ended 2003 of Sh285 million, a 161 per cent growth over the previous year.

The bank's balance sheet grew to Sh12.1 billion over the same period, a growth of nearly 69 per cent over the previous year.

Deposits grew 73 per cent to Sh10.4 billion in 2003.

The Bank's NPA ratio (net NPAs /total advances) as of March 2004 was 5.17, the second lowest in the industry.

In the recent Company of the year Awards(COYA), the bank's prestige was boosted when it emerged tops in two categories; human resources and information and management.

It was the first time in the history of the awards that a locally owned firm has won the two titles on its first attempt.

The awards seek to recognise excellence in the professional management of Kenyan companies.

I&M (Investment & Mortgages Bank) was originally incorporated in 1974, and licensed as a Financial institution in 1980.

It operated from an office on Kenyatta Avenue, the site of the ultra modern I&M Bank Tower.

With increasing volumes and customer demand, the directors decided to convert the finance company into a bank in 1996.

Its conversion to a bank was a turning point in expanding from a one-branch operation into three branches, all located in Nairobi.

In order to grow, the bank merged with Biashara Bank of Kenya through an acquisition of assets and liabilities.

This transaction was concluded on December 31, 2002. Apart from a quantum jump in the size of its balance sheet, the branch network increased to seven, with added presence in Mombasa, Kisumu and Industrial Area in Nairobi.

Biashara was a retail bank with a wide spread of savings accounts, whereas I&M had concentrated more on corporate customers, as its main strength was trade finance, hire purchase and loans.

The merger of the two banks' operations expanded the group's product range, and a wider customer base has resulted in reduced costs.

I&M's customer base is broad and diverse, covering retail, manufacturing, trading, exporters, hotels, horticulture and service sectors.

The bank also offers custodial services and is gradually expanding to retail lending. I&M was the first commercial bank to introduce a home loan product in the Kenyan market in 2003.