Business / Companies
Obert Mpofu's bank property attached over $1.5 million debt
09 Jan 2015 at 15:01hrs | Views
Allied Bank's fortunes have taken a turn for the worse with property from 5 Harare branches being attached by the deputy sheriff's office over a US$1.5 million debt.
The closure of Allied Bank, which was on the brink of collapse, has spurred creditors to take legal action with the Zimbabwe Amalgamated Housing Association being the first to attach the institution's property.
In a notice on Thursday, the Reserve Bank of Zimbabwe announced that the cancellation of the bank's licence was considered to be in the best interests of the institution, its depositors and creditors and the banking sector in general, a view shared by economic analysts.
The RBZ says it will apply for the liquidation of the institution in terms of Section 57(1) (a) of the Banking Act, as Allied has been facing liquidity constraints, a fact that has riled depositors.
In his maiden monetary policy statement, RBZ Governor John Mangudya said Allied Bank alongside Tetrad, AfrAsia and Metbank were under the monetary authorities' watch as the quartet was facing liquidity challenges.
In its six months to June 2014, Allied Bank losses widened to $4,2 million from $2,4 million recorded in the same period in 2013 attributed to a decline in operating income and a rise in interest expenses.
Operating income nose-dived to $291 001 in the period under review from $2 344 999 in the prior period in 2013 led by declines in net interest income and fees and commission income.
Net interest income was in the red at -$463 874 after the bank got $186 096 in interest paid on loans.
It paid out $649 970 as interest on deposits and other investments.
In the same period in 2013, the bank recorded a net interest income of $120 620.
The closure of Allied Bank, which was on the brink of collapse, has spurred creditors to take legal action with the Zimbabwe Amalgamated Housing Association being the first to attach the institution's property.
In a notice on Thursday, the Reserve Bank of Zimbabwe announced that the cancellation of the bank's licence was considered to be in the best interests of the institution, its depositors and creditors and the banking sector in general, a view shared by economic analysts.
The RBZ says it will apply for the liquidation of the institution in terms of Section 57(1) (a) of the Banking Act, as Allied has been facing liquidity constraints, a fact that has riled depositors.
In his maiden monetary policy statement, RBZ Governor John Mangudya said Allied Bank alongside Tetrad, AfrAsia and Metbank were under the monetary authorities' watch as the quartet was facing liquidity challenges.
In its six months to June 2014, Allied Bank losses widened to $4,2 million from $2,4 million recorded in the same period in 2013 attributed to a decline in operating income and a rise in interest expenses.
Operating income nose-dived to $291 001 in the period under review from $2 344 999 in the prior period in 2013 led by declines in net interest income and fees and commission income.
Net interest income was in the red at -$463 874 after the bank got $186 096 in interest paid on loans.
It paid out $649 970 as interest on deposits and other investments.
In the same period in 2013, the bank recorded a net interest income of $120 620.
Source - zbc
