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NIC management of Imperial Bank comes to an end

NIC Group managing director John Gachora. PHOTO | SALATON NJAU
NIC Group managing director John Gachora. PHOTO | SALATON NJAU 

NIC Bank #ticker:NIC has completed managing the collapsed Imperial Bank after its nine-month tenure to process payments to depositors and collect loan repayments came to an end.

Two batches of disbursements to more than 5,500 Imperial customers totalling Sh10.78 billion was paid out and a further Sh5 billion collected from borrowers, the bank said Wednesday.

The Central Bank of Kenya (CBK) on June 21, 2016 appointed the mid-sized lender as a consultant for Imperial Bank with key task of separating the ‘good bank’ from the ‘bad bank’ on a legal arrangement-- technically referred to as “exclusion and transfer process.”

“NIC Bank also completed its due diligence and review of loans, other assets of Imperial Bank and made a proposal with regard to certain loans, other assets, branches and staff for consideration by the Kenya Deposit Insurance Corporation (KDIC),” said group managing director John Gachora.

However, Mr Gachora remained tightlipped on plans to acquire Imperial. NIC Bank has handed to KDIC a due diligence report on Imperial.

Mr Gachora had earlier said: “Part of this is due diligence. We’re creating a good bank from the bank. The end game is assuming the good bank”.
Imperial was placed under receivership on October 13, 2015 after the CBK learnt of a looting spree amounting to Sh34 billion of depositors’ cash at the lender.

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