National Development Bank (NDB) says commercialisation and privatisation carry the company’s hopes of becoming a dominant player in the banking and financial services industry.
This week, NDB Chief Executive Lorato Morapedi announced that her institution continues to adequately prepare for these major transitions which also include restructuring. “The structure re-alignment exercise was done during the year was intended to develop a more responsive as shareholder expectations continue to grow,” Morapedi highlighted. Morapedi was excited that the new structure was completed with success and is now operational. The structure also pitted retrenched staff against management.
Board chairman Lesedi Seitei stressed that the privatisation is ongoing with the NDB Transition Bill expected to be deliberated upon at the November 2013 parliament sitting. Staff members will be engaged in every step of privatisation. Public Enterprises Evaluation and Privatising Agency (PEEPA) spokesperson Montlenyane Baaitse told BG Business recently that the NDB privatisation was being delayed by parliament which was yet to approve the Transition Bill. “Cabinet has already considered and approved the NDB Transition Bill, and is currently waiting to be presented to parliament, “said Baitse. Once the Transition Act has been passed, it could take about five to six months from commencement stage to complete the commercialisation.
After approval of the Transition Bill by parliament, NDB would now be transformed into a limited liability company and would now be able to apply for banking license to Bank of Botswana (BoB). Morapedi believes that after commercialisation, NDB will then be able to rub shoulders with the likes of First National Bank Botswana (FNBB) and Barclays, a move that will up the NDB’s assets value and profitability with swelling competitiveness. She made a statement in the bank’s financial results for the year ended 31 March 2013. The bank saw its loan book growth accelerating by 16 percent, leading to a 23 percent growth in the NDB assets, which are now valued at P1.4 billion.
The bank’s comprehensive income for the year also grew to P46 million, from the P40 million a year before figure seen in 2012.