NIC Bank Appointed Asset and Liability Consultant for Imperial Bank

NIC Bank, a Tier 2 bank in Kenya has been appointed by the Central Bank of Kenya (CBK) as a consultant to assess the assets and liabilities of Imperial Bank, which was under statutory management in October 2015.

Governor Patrick Njoroge in a statement said, “Subject to a due diligence and contract review, and following negotiations, KDIC will dispose of, and NIC will assume, a portion of the remaining verified deposits along with certain other assets and liabilities.”

“It is expected that depositors will be granted access in a structured manner to about 40 percent of the remaining amount of verified deposits above 2.5 million shillings,” the statement added.

However, the CBK Governor Patrick Njoroge emphasised that NIC was not acquiring Imperial Bank, and also said a moratorium on new bank licences remained in place.

Read: Imperial Bank Shareholders Reiterate Commitment to Reopening the Bank

KDIC envision the disbursement to commence in early July 2016.

“We believe the conclusion of this process, together with previous disbursements, will achieve a cumulative pay-out ratio of approximately 59 per cent to the depositors in a structured fashion. Other efforts will continue to pursue recoveries for IBL to the further benefit of depositors and other stakeholders.”

Imperial was taken over by regulators after former Managing Director Abdulmalek Janmohamed died and the central bank was alerted by directors of the bank to inappropriate business practices.

Read:

• Who Owns the Millions Held at Imperial Bank? 
• Only 10,000 out of 50,000 Depositors Claim their Cash from Imperial Bank

Cytonn Q1’2016 Banking Sector Report, “Transition continues, but to a new and different landscape” ranks NIC bank ninth. According to the report, the bank:  has an increased investment in digital platforms, NIC Now and Internet banking by 29 percent  and 41 percent, respectively and the bank has  maintained its pole positioning in asset financing and curved a niche in the market.