SBM bank acquires 75% Chase Bank deposits and assets

BUSINESS

SBM bank Kenya has officially acquired 75 percent of Chase Bank assets and deposits. This is after the Central Bank of Kenya and Kenya Deposit Insurance Corporation(KDIC) announced the signing of an agreement and conclusion of discussions that began early this year on how to revive the bank.

In the agreement, the leader in financial services group (SBM) in Mauritius will acquire a majority of staff and existing branches under Chase Bank Limited Receivership (CBLR) operations. 25 percent of the frozen deposits will remain in Chase Bank.

According to local dailies, non-moratorium depositors will also be transferred and will continue to have full unrestricted access to their funds. There is no clear notice or dates given when these deposits and the details under which the customer accounts will be managed.

Through the agreement, SBM will bring in its experience and expertise from Mauritius and other markets, to increase competitiveness in Kenya’s banking sector. In 2016, Chase Bank was put under receivership by KDIC after running into financial difficulties. During the period under receivership,Chase Bank opened about 35, 235 deposit accounts.

SBMH is the third largest company listed on the Stock Exchange of Mauritius with a market capitalization of approximately USD 680 million, with the Government of Mauritius as a significant shareholder, and total assets of USD 5.8 billion as at December 31, 2017.

It also has a growing international presence in Madagascar and India and in 2017 it acquired Fidelity Bank and renamed to SBM Kenya.

Meanwhile, Imperial Bank is set to get a new owner after being put under receivership in October 2015. KDIC and CBK in March received non-binding offers from shortlisted investors who are at the stages of evaluation.

Originally posted on Business Magnet

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Mercy Nduati
Ms.Mercy Nduati is a business blogger with Business Magnet and has three years professional qualification as an Editorial Assistant for an engineering journal. Currently, she is a communication officer at Center for African Bio-Entrepreneurship where she is in charge of internal and external communication for the organisation.
https://wanjikublog.wordpress.com

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