23 May 2012

Zambia: Indo-Zambia Posts Growth

INDO Zambia Bank has achieved record breaking results with net profit reaching K37.18 billion from K23.14 billion, registering growth of 60 per cent more than the past few years.

And the Bank's total business mix has increased from K1, 249 billionto K1.6 trillion posting a growth rate of nearly 28 per cent.

Indo Zambia Bank chairperson Orlean Moyo said the operating profit of the bank grew impressively by 45.90 per cent from K44.88 billion to K65.48 billion as at March 31.

Ms Moyo said the bank's aggregate deposits have grown from K833.13 billion to K990.22 billion recording growth of 18.86 per cent.

She said the financial year 2011-12 has been one of the most eventful years in more than 27 years history of the bank achieving record breaking results.

For the period under review, the low cost Kwacha deposits grew by 21.91 per cent from K353 billion to K430.89 billion, out of which savings deposits reached 15.35 per cent and current deposits at 28.8per cent while fixed deposits recorded growth of 30.90 per cent.

At a cocktail party in Lusaka on Monday, Ms Moyo said the bank's performance in the area of credit growth had been quite awesome with aggregate gross advances rising from K422.22billion to K615.88 billion posting a growth rate of 45.87 per cent.

At the same time, the bank extended credit to indentified key sectors of the economy such as manufacturing, tourism, agriculture, mining and housing.

She said the other major sectors of credit dispensation being the retail, wholesale trade sector and infrastructure development which resulted in growth of more than 45.87 per cent in the net credit portfolio from K422.22 billion last year to K615.88 billion as at March 31,2012.

Ms Moyo said the shareholders had decided to plough back 100 per cent of its profit towards strengthening its primary capital level as step towards meeting the new primary capital adequacy framework guidelines issued recently by the Bank of Zambia.

And Finance and National Planning Minister Alexander Chikwanda said the Government was happy to have received anotable tax payment of K27.56 billion from Indo Zambia Bank.

Mr Ckikwanda said the Government takes great pride in the performance of Indo Zambia Bank which had been paying dividends year after year.

He said the increase was significant because of its desirable stimulant effect on the economy as this money was directly injected into the national economy.

"I am equally impressed to note that the bank has managed to sustain the best asset quality standards and your credit deployment is focussed on the growth areas of the economy such as manufacturing, agriculture, tourism and infrastructure development," Mr Chikwanda said.

And Indo Zambia Bank managing director Satish Shukla said the shareholder funds had increased from K163.09 billion in September 2008 to K235.42 billion in March representing a growth rate of 44.35 per cent through retention of major portion of profit earned by the bank.

Mr Shukla said the Bank had opened six new branches in more than three years which includes Nyimba and Kasumbalesa border post located onZ ambia-Congo frontier.

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