INDO-Zambia Bank will not pay dividends this financial year despite making a profit of over K37 million. This is because it has to meet some statutory obligations.
Indo-Zambia recorded a net profit of K37.17 million in the financial year ending December 31, 2013, but the bank’s shareholders have forgone dividends to enable the financial institution meet the minimum capital threshold for commercial banks operating in the country.
“Despite the bank recording a net profit of K37.17 million [the shareholders] resolved to sacrifice dividends and plough back 100 percent towards strengthening the primary capital level” Indo Zambia Bank chairperson, Orlean Moyo disclosed.
Mrs Moyo, who was speaking at the bank’s 29th annual general meeting cocktail party on Thursday evening, said Indo- Zambia’s equity has increased from K239.18 million to K276.74 million after retaining dividends and recapitalising the bank.
She said the bank’s credit portfolio – mainly to the manufacturing, agriculture, tourism and infrastructure development sectors – increased to K881.62 million representing about 13 percent.
The total balance sheet also grew to about K3.5 billion while support to small and medium-scale enterprises registered over 20 percent growth with over 680 vulnerable women benefiting from the bank’s micro-finance lending scheme dubbed Self Help Groups.
Speaking at the same function, Secretary to the Treasury Fredson Yamba assured the business fraternity and public of Government’s broad-based macro-economic policies to attain economic growth and create wealth.
“The economy is poised for continued growth while the business community can be rest assured of a favourable environment,” he said.
Mr Yamba commended Indo-Zambia on its commitment to the country’s economy as demonstrated by its tax contribution amounting to K22.7 million in the period under review and branch expansion that has resulted in a branch presence of 25 in all the 10 provinces.
“Government takes pride in Indo-Zambia Bank because the bank has over the past 30 years yielded tremendous success and made significant contributions to the social-economic development of the nation. The bank also stands out as a shining example of the economic ties between the governments of Zambia and India,” he said.
Zambia Daily Mail