NIC Bank is set to double its branches by the end of next year in a move aimed at netting new customers within the small and medium business sector.
This was revealed yesterday by the bank’s chief executive officer John Gachora. Speaking to Reuters, Mr. Gachora said that the move would allow NIC to cut its deposit costs while improving its profit margins.
“Our net interest margin of 6.5 per cent is below the industry’s 7 to 10 per cent. This means that our cost of funds is relatively high and that is why the strategy to expand our branch network, reach more pockets of deposits and liquidity,” he said.
The NIC Bank is currently popular for asset financing.