NMB Bank ups its single borrower limit to Sh250 billion

Dar es Salaam. NMB Bank Plc has raised its single borrower limit (SBL) to Sh250 billion, thanks to the lender’s sustained splendid financial performance that has seen an epic rise in its capital.

The bank’s chief internal auditor, Mr Benedicto Baragomwa, told the NMB Business Executive Network (BEN) forum in Dar es Salaam at the weekend that the bank’s SBL now stands at Sh250 billion, up from Sh200 billion a few years ago.

The SBL figure is the legal credit limit the bank can now lend to a single borrower.

He told the 100 participants from Dar es Salaam Region that the bank offers instant digital loans of up to Sh500,000.

Expounding on the numbers, NMB’s head of business banking, Mr Alex Mgeni, said the positive lending development was largely the outcome of high profitability levels which allow the lender to plough back part of the income to boost its business to boost operations.

“In fact, our capital base has now reached some Sh1.2 trillion which translates into the SBL of about Sh300 billion as per regulations of the Bank of Tanzania which allow commercial banks to lend 25 per cent of its capital,” Mr Mgeni said on the sidelines of the BET forum.

Similar BEN events were held in Mbeya where the bank’s head of credit department, Demetus Kamguna addressed the forum members while Regional Commissioner, Mr Juma Homera graced it.

NMB Bank Plc – which has total assets of about Sh9 trillion - initiated the forums in 2014 as a networking and notes sharing platform, attracting customers with annual turnover of Sh5 billion.

To date the BEN platform has over 1,000 business partners in seven regions including Dar es Salaam, Dodoma, Morogoro, Kilimanjaro, Mwanza, Arusha and Mbeya.