National Bank is seeking a Sh. 3 billion loan from National Social Security Fund (NSSF) to shore up its capital base.
NBK announced yesterday that the loan will be taken in as Tier II capital and allow the bank to grow loan book and take in customer deposits.
“This is an interim measure. Preference was to get the funds from one of our shareholders as we continue to pursue the rights issue,” bank’s chairman Mohamed Abdirahman Hassan said.
NSSF is the largest shareholder at NBK with a 48.05 per cent stake while the Treasury directly owns 22.5 per cent of the bank.
NBK’s total capital to total risk-weighted assets ratio stood at 13.1 per cent against as at March 2016, which is 1.4 percentage points below the Central Bank of Kenya statutory minimum of 14.5 per cent.
