Managing Director/Chief Executive Officer, of Baobab Microfinance Bank, Dr. Kazeem Olanrewaju, said a sum of N100 billion loans has been disbursed to customers since inception.
Addressing journalists in Lagos, he noted that the lender’s average monthly loan advancement stands at an average of N3billion and over 240,000 customers have accessed it since inception.
Specifically, he said the bank’s share capital unimpaired by loss stood at N4.72billion as of December 31, last year, adding that this has led to a massive expansion drive with 24 branches across 7 states in Nigeria.
Olanrewaju said the bank is also reaching more people across various states where it is not present with its e-payment channels.
Speaking further, he stated that the bank would continue to invest in technology to create value for customers and reach the unbanked. He said some of the e-payment channels deployed by the bank include USSD, with code is *732*348#, Autopay, Mobile App, and debit card. The bank has also partnered with Interswitch to deepen e-payment deployment and transactions.
On raising new capital for the bank, he added: “I am happy to announce that as it stands, by the end of last month, our capital was already N4.7billion. What the Central Bank of Nigeria (CBN) requires us to do is to have N5billion capital base by April 2022. From our projections, and what we are seeing this year, by October, this year, we should have the N5billion that is required even ahead of time.”
The managing director further disclosed that from “our retained earnings, we expect that the bank’s capital will go up to N5billion before the deadline, adding that the N300 million required to achieve the N5billion minimum capital base for its operations will be raised before the end of October.
On the impact of COVID-19, he said the bank has continued to ensure that its customers are staff are safe despite the pandemic. He said the bank is back on the path of growth and expansion.
Due to the COVID-19 pandemic, he said the bank restructured 90 per cent of its loan book adding that the majority of the restructured loans have paid down.
According to him, “we have less than two per cent of the restructured loan in our book, which means that some of the opportunity we gave to the customers to come back is working. We discharged the customers of all the penalties, part of the loan interest, and in some cases, we tried to enhance the loan even when those people have not fully paid,”
Olanrewaju said the bank would be venturing into Plateau State, South East and South-South regions very soon.