A former Prime Minister and First Vice President of
"I would like to advise the management that to grow and improve its portfolio, the bank has to change from being the people's bank to a commercial bank," he said.
Msuya told East African Business Week the change will enable the bank to spread its wings in other regions. He said it will also help MCBL grow faster.
The bank's Managing Director,
Ghuhia told East African Business Week the move will help the bank to find more investors who can inject capital and increase efficiency.
The Auditor and Examiner of the
Mwasanguti said according to the conditions of BoT, the bank should raise its capital to Tsh15billion (about
Seushi said by 2014, the bank will have raise the amount of deposits, lending, revenue, control expenses and bad debts.
He said: "We expect to increase deposits, loans, shares through our service centres opened in Moshi, Same, and Hedaru as it is in our Business Plan of 2013-2017."
In 2015 the bank intends to increase deposits by 15% and reach Tsh9.79billion (
He said clients increased from 24,455 as of
He asked shareholders to increase their deposits to benefit from a presently good interest rate.
With regard to ratio of loans to deposits, Mwasanguti said according to BoT's regulations, the figure should not exceed 80%, but the MCBL has already surpassed that level.
"Deposits in your bank are not impressive, this is because there is no good ratio of deposits and loans," he told shareholders.
Seushi said the banks' statistics show that the lending rate in June is higher than the deposit rate.
According to bank's chief the bank's total assets increased by 32% to Tsh10.46billion (about
However, he argued that the goals of the interest income in 2013 were surpassed-Tsh423 million (about
"The whole expenditure was below targets by 7% although operational costs were high due to expansion of operations in the region after establishing service centers in Moshi, Same and Hedaru," he said.
The goals of profit before tax were reached and surpassed by Tsh46 million (about
Normal deposits increased and surpassed the targets at Tsh2.81 billion (about
"The total assets of MCBL exceeded the targets by Tsh1,514 million (about
"The challenge we face is that many customers fail to pay their loans according to the agreement as a result that bank is making provision expense ranging from 5% -100% of the loan depending on period of outstanding installment unpaid , for compliance with the laws of the BoT, he said.
Another challenge to MCBL is to increase actual bank capital (core capital), to reach Tsh2 billion (about
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