27 February 2013

Tanzania: DCB Commercial Bank Boosts Capital to Sh28 Billion

THE DCB Commercial Bank Limited has increased its capital from sh15 billion to sh28.2 billion in accordance to the Bank of Tanzania (BoT) regulations.

The bank raised the funds through the rights issue that commenced in October, last year and was concluded last month. According to the Bank's Board Chairman, Ambassador Paul Rupia, the performance in mobilising the bank's capital has also enhanced the shareholding structure of the Anchor Shareholders to 37.1 per cent compared to the previous 32.6 per cent.

Amb. Rupia said out of 38.5 million shares issued under the programme, a total of 29.2 million shares have been subscribed and allotted to respective shareholders fetching into the share capital a total sh11.1 billion compared to the intended collection of sh14.6 billion.

The bank now intends to start the implementation of its operations as a fully fledged commercial bank. The bank's Managing Director, Mr Edmund Mkwawa, said by the end of this year two more branches, one in the city centre and another in Tabata Makuburi in Kinondoni Municipality will be opened, making total eight branches in Dar es Salaam alone.

He said the bank anticipates 2013 will be a good business year as it targets to make sh4 billion net profit compared to 2.1bn/- recorded last year. "Last year we managed to serve our customers well despite stiff competition and dished out loans amounting to sh69 billion, 40 per cent of them going to salaried staff," he said.

Future plans, according to Mr Mkwawa, include introducing agency banking, mortgage financing as well as dishing out medical materials worth 9m/- to paediatric units in selected hospitals, in line with the bank's Corporate Social Responsibility (CSR) programme.

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