Photo/kbctv.co.keNIC Bank has announced to the conclusion and handover process following the end of its mandate as the Asset and Liability Consultant for Imperial Bank.
On June 21, 2016, the Kenya Deposit Insurance Corporation (KDIC), with the endorsement of the Central Bank of Kenya (CBK), appointed NIC Bank to act as the Asset and Liability consultant for IBLIR.
NIC Bank undertook, on behalf of the KDIC, an assessment of the quality of IBLIR’s assets and liabilities, supported the loan recovery process and provided guidance on other assets and IBLIR staff.
The NIC Bank appointment came to an end on April 13th, 2017, following the end of the 18 month initial Receivership period. During this time, NIC Bank had fulfilled its mandate as advisors to KDIC providing them with a thorough review of the assets and how to maximize value for depositors and other stakeholders.
As part of its engagement, NIC Bank and KDIC set up a management structure which has met on a regular basis to execute on the mandate. NIC Bank made two disbursements totaling KES 10.78 Billion to over 5,500 depositors on behalf of KDIC.
To support the customers of IBLIR, NIC Bank availed all its branches in addition to opening 5 IBLIR Branches.
NIC Bank also supported KDIC to collect over KES 5 Billion from borrowers, restructure loans, resolve several outstanding depositor and custody account issues and put in place a process to resolve items in transit.
In addition, NIC Bank has helped KDIC bring on board core banking system consultants to update post receivership transactions of IBLIR and enable customers to access the right account statements and account reconciliations.NIC Bank also completed its due diligence and review of loans, other assets of IBLIR and made a proposal with regard to certain loans, other assets, branches and IBLIR staff for consideration by the KDIC.
Mr. John Gachora, Group Managing Director said “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”.