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| Mr Moshingi |
Tanzania Postal Bank (TBP) plans to
list on the Dar es Salaam stock Exchange (DSE) by early next year.
The TPB Chief Executive Officer (CEO),
Sabasaba Moshingi, said the move was aimed at boosting the bank’s capital and
change its status to become a commercial bank.
At present TPB is a financial institution.
“Other options might take longer time
than anticipated but it is easier through a public offer, as our books support this,”
Mr Moshingi said.
The CEO said other reason for example
in-house option may take long, as the bank’s assets are still low to warrant
immediate internal capitalisation. The bank’s assets at the end of last year stood
at 136.24bn/-.
“DSE is the best option, but the Act
that established the bank has to be amended to facilitate the move,” Mr Moshingi
said.
TPB was established by the Act of
Parliament in 1992 as corporation. It must be registered as a company to go
public.
One of the DSE listing requirement is
to generate profit for three consecutive years and to have sound balance sheet.
Apart from lobbying for amending the
Act, the bank has also embarked on renovation of its branches ahead of becoming
a commercial bank.
The CEO said the bank expects to make
pre-tax profit of 4.5bn/-.
He said TBP shareholders plan to
increase the bank’s capital by 10bn/- within the next five years. This will
give the bank an extra boost on executing its services, mostly to SMEs.
In 2010, the Bank of Tanzania (BoT)
raised the minimum capital requirement for commercial banks from 5bn/- to
15bn/-.
Source: The Daily News,http://www.dailynews.co.tz, reported by Abduel Elinaza
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