4 April 2012

Tanzania: Dar es Salaam Bank Grows to Become Commercial Bank

THE Dar es Salaam Community Bank (DCB Plc) has had its status upgraded to a commercial Bank with immediate effect following approval by the Bank of Tanzania (BoT).

Announcing the achievement in Dar es Salaam yesterday, the DCB's Managing Director Mr Edmund Mkwawa said the provision of the licence will now enable the bank - now know as DCB Commercial Bank Plc, to open branches across the country. He said with the bank's capital base now reaching 14.5bn/- the major shareholders have also given no objection to the new landmark which has automatically changed its corporate image from just a community bank to a commercial bank.

"We have also checked with the Business Registration and Licensing Authority (BRELA) on the same and has already given us a go ahead," he said. However, he said it was early to confirm when the bank will start opening upcountry branches, adding some feasibility studies would have to undertaken first.

On the state of the business operations, Mr Mkwawa said the bank was now set to introduce new products like micro housing facility which would take over from the current Housing Loan scheme which has attracted very few customers than earlier expected. Studies on the scheme, he said, had shown many bank customers were not used to such product because of usually taking small loans they can afford to pay back.

"But with the new image, we are now set to approach corporate clients including public and private institutions to take full advantage of the bank's existing and new products as it tremendously grows," he boasted. Presenting future outlook of the bank, the MD said, DCB planned to mobilize 116bn/- deposits by end of this year from 81.1bn/- mobilized last year.

Lending is projected to earn the bank about 84bn/- from 55.9bn/- attained last year while new innovative products like internet banking and Agency banking will be introduced. DCB, according him, managed to garner after tax profit of 3.26bn/- last year being an increase of 3.16 per cent from the 3.16bn/- profit realized the previous year.

As a result, he announced the payment of dividends to shareholders to the tune of 50/- per share compared to 48/- paid in 2010, which is in line with company policy of allocating 50 per cent of the annual profit as dividends to shareholders. "The dividends will be paid out on or about July 1, this year directly to the shareholders' accounts maintained by DCB at its branches or other banks as per individual shareholders instructions," he said.

Recently, the DCB's Board changed its organization structure to handle bank operations more smoothly, as four new departments were formed. They are Small and Medium Enterprises (SMEs), Import and Export, Treasury, Marketing and Public Relations and Corporate department that will deal with corporate customers as well as the Government and municipal councils.

Copyright © 2012 Tanzania Daily News. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.