- Published on Thursday, 22 December 2011 09:11
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The board of directors of GTI Microfinance bank limited has approved an increase in share capital from N50 million to N150 million for a state license.
The approval is in line with the revised regulatory guideline for microfinance banks which states that a Unit microfinance bank that intends to transform to a State MFB shall be required to surrender its licence and obtain a State MFB licence, subject to fulfilling stipulated requirements of the Central Bank of Nigeria (CBN).
The CBN had classified Microfinance Banks (MFBs) into three categories - Unit, State and National microfinance banks. The new guideline stipulates that those under the Unit category will have a minimum paid-up capital of N20 million, those that will apply for State will have a paid-Capital base of N1000 million, while those for National will have a paid up capital of N2 billion.
Speaking at the annual customer’s forum 2011 held in Lagos, Abimbola Adewale, managing director noted that the bank has filed application and received the certificate of share increase from the Corporate Affairs Commission (CAC).
According to him, the bank is currently working with the CBN on the State license with a plan to open five branches in the first year and 12 branches by the third year of its State license.
To facilitate its operations in the next regime, the bank is embarking on some initiatives such as the introduction of a more robust web based information technology system to improve its service delivery, introduction of electronic banking channels such as Point of Sale (POS), ATM, mobile money, SMS and e-mail alerts at affordable rates.
Other measures include the introduction of credit bureau system to check customer banking status across the industry and the establishment of five additional branches in 2012 to expand coverage.
Speaking on the bank’s services, Funmi Fakoya, one of the customers said the bank has been very supportive, even better than some commercial banks. "They always make money available".
Speaking at the forum, Bright Ididia, executive secretary, National Association of Microfinance Banks (NAMB) Lagos chapter, said the Association has worked so hard to play its advocacy role, adding that it contributed to the restoration of 32 microfinance banks that their operating licenses were revoked by the CBN.
This article was originally posted on Africa Banking Network