Malawi’s fastest growing commercial bank, FDH Bank, says it sees a bright future following the recapitalisation process which has so far seen a total of K6.6 billion being injected into the bank.
In an interview on Friday, FDH Holdings Chief Executive Officer, Thom Mpinganjira, said an additional K5 billion will be injected into the bank before May 31 ahead of the June 30 deadline set by the Reserve Bank of Malawi.
The development will bring the total amount spent on recapitalisation of the bank to K11.6 billion.
Mpinganira said the capital injection would enable the bank meet Basel II requirements.
Basel II is an international business standard that requires financial institutions to maintain enough cash reserves to cover risks incurred by operations.
The Basel accords are a series of recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.
“Definitely the future looks bright, no doubt about that,” said Mpinganjira.
Last year, FDH paid K5.1 billion for controlling stakes in the then government-owned Malawi Savings Bank (MSB) which was on the blink of collapse as it struggled to keep pace with the dictates of Basel II.
Mpinganjira said by June 30, 2017 FDH expects to spend a total of K10.7 billion on acquisition, integration and stabilisation, optimisation and rebranding of the bank.
He said, the bank is expected to spend a total of K26.7 billion on acquisition, intergration, stabilisation, optimisation and recapitalisation.
“We are happy that we now have a bank with the largest footprint in the country with 53 branches and points of representation in all 27 districts. We have a total of 91 automated teller machines spread across the country.
“In addition, we are the first bank in Malawi to develop and launch a mobile banking application,” said Mpinganjira.
FDH Bank was licensed on November 27 2007 and started its operations on July 15, 2008.
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Today’s top business story: Top Commercial Banks In Malawi
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