Mwanga Hakika Microfinance graduates to commercial bank
The National Assembly speaker, Dr Tulia Ackson (second right), receives a souvenir from the chairman of the board of directors of Mwanga Hakika Bank, Ridhiwani Mringo (centre) to symbolize its inauguration as a commercial bank. others are the bank Managing Director Mr Jagjit Singh (second left, board of directors vice chairman Raymond Thadeus (left) and right is the Kinondoni District Commissioner Godwin Gondwe. PHOTO | COURTESY
What you need to know:
- This comes after its capital base rose to Sh18 billion. It was formed following the merger of EFC Tanzania Microfinance Bank, Hakika Microfinance Bank and Mwanga Community Bank
Dar es Salaam. Mwanga Hakika Microfinance Bank Limited (MHB) has graduated to a commercial bank, giving it a chance to broaden the scope and type of services on offer.
This comes after its capital base rose to Sh18 billion.
It was formed almost two years ago following the merger of EFC Tanzania Microfinance Bank, Hakika Microfinance Bank and Mwanga Community Bank.
It is now called Mwanga Hakika Bank.
The law requires a microfinance bank to have a minimum capital of Sh5 billion while a commercial bank is to have a capital of at least Sh15 billion.
“We are now able to provide much more in loans, unlike during the time we operated as a micro-finance bank,” the bank’s managing director, Mr Jagjit Singh, said during an event to officially announce its shifting from a microfinance bank into a commercial lender.
The National Assembly speaker, Dr Tulia Ackson, graced the event.
It can now avail up to Sh4.5 billion in loans to a single borrower without seeking the regulator’s approval.
The bank’s loan portfolio currently stands at Sh72 billion. The ratio of its Non-Performing Loans (NPLs) total gross loans stands at 5.49 percent.
Mr Singh promised to avail loans that contractors in the country.
He said the bank will also provide loans to agriculture, mining and trade among others.
Visa cards, other services and rural expansion are also on the bank’s menu.
Currently, Mwanga Hakika Bank has seven branches out of which, two are in Dar es Salaam, three are in Kilimanjaro and one in Dodoma and Arusha.
“By widening our outreach, many more customers can take benefits of the services,” said Mr Singh.
According to the board chairman of Mwanga Hakika Bank, Mr Ridhiwani Mringo, the bank’s operations will be built on creativity, transparency and affordability.
It has 106 employees; total assets of Sh111 billion and customer deposits of Sh71 billion.
