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Loans worth Sh5bn recovered from collapsed Imperial Bank borrowers

The bank’s receivership was to end on April 13 this year, after which KDIC would have to confirm to CBK whether the bank can be revived or should be liquidated/FILE

NAIROBI, Kenya, May 4 – NIC Bank has recovered Sh5 billion in loans and advances from borrowers of Imperial Bank Limited which was placed under receivership.

NIC Bank says it has also made two disbursements totalling Sh10.78 billion to over 5,500 depositors on behalf of the Kenya Deposit Insurance Corporation (KDIC).

The bank says it has also completed its due diligence and review of loans, other assets of Imperial Bank Limited and made a proposal with regard to certain loans, other assets, branches and staff for consideration by the KDIC.

This follows the end of its mandate as the Asset and Liability Consultant for Imperial Bank.

NIC Bank’s appointment came to an end on April 13, 2017, following the end of the 18 month initial receivership period.

“As we said from the very beginning, our involvement in this process has always been in the wider public interest and to support the depositors, creditors, employees and other stakeholders of IBLIR. I believe the advice we have provided to KDIC, if followed, will maximize value for these constituents. NIC Bank stands ready to provide additional support if called upon in the future,” said Group Managing Director John Gachora.

The receivership of Imperial Bank was in March 2017, extended by another 90 days by the High Court to enable the shareholders and the regulator explores other viable options of resuscitating the collapsed lender.

The bank’s receivership was to end on April 13 this year, after which KDIC would have to confirm to CBK whether the bank can be revived or should be liquidated.

Imperial Bank was ranked 19 out of Kenya’s 45 lenders at the end of 2014. On June 30, 2015 it reported assets of Sh70.3 billion.

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