As part of efforts to be more competitive in the microfinance sector, the authorities of Auchi Microfinance Bank has concluded plans to shore up its paid share capital to N200 million.
Hassan Momodu, board chairman of the bank made the disclosure during the 22nd/23rd annual general meeting of the financial institution in Auchi, the administrative headquarters of Etsako West local government area.
Momodu said the paid share capital would be achieved through private placement for the issuance of N250 million shares at N1.25kobo and right issues for the bank’s existing shareholders at the ratio of one share for every three existing shares held at N1.10kobo per share.
He said the capital would enable the bank to invest on innovations and other opportunities created by advancement in information technology that will be an engine of growth to the populace.
According to him, “we seek to improve our information technology infrastructure and we may source for better service providers in order to be more competitive and to obtain a larger share of the market.
“This will enable our bank to bring advanced technological services tailored to the active poor who have no opportunity in accessing such services and creating ease of banking.
“This increase of our share capital will strengthen our bank and place it on an higher pedestal in the competitive microfinance industry. This will enhance positive effect on returns on investment and dividend”,he said.
While noting that the bank is poised to expand its scope of operation within regulatory provisions, he however, called on shareholders to use the window to increase their shareholdings at a cheaper cost.
Momodu also expressed the bank’s willingness to collaborate with other government agencies to bring development to the community and project a good image of the bank to the country at large.
“We will continue to focus on those areas that will provide great opportunities for business growth and easy access for our customers to obtain loans and services.
” We reiterate our mission to economically empower micro- entrepreneur and low-income earners by providing access to financial services in a sustainable, ethical and profitable manner.
“I wish to assure you that your investment will not be in vain. We will continue to formulate policies and create the enabling environment that will ensure optimum returns for your investment while ensuring that the expectations of our customers are met and surpassed”, he added.