Buna International Bank, Ethiopia is to begin micro lending and saving operations. The bank wishes to change the banking system in Ethiopia where there are large numbers of depositors but few are able to access bank loans according to Eshetu Fentaye, President of Buna.
To this end Buna will offer micro lending and saving services to enhance banking services to small scale actors who could potentially make a difference in the economy he said.
There are no limits as to how much a bank can loan or deposit said Esthetu explaining that the National Bank of Ethiopia will not restrict Bunna’s bid to provide micro lending and saving services.The move towards micro finance is beneficial for the bank’s customers who are primarily civil servants and other salaried employees.
It is to be remembered that Buna International Bank, announced a gross profit of 26.8 million for the last fiscal year. The bank was able to net a profit of 19.4 million birr. Total Revenue generated by BIB for this fiscal year was 73.5% million birr.
The total assets of BIB increased, by 62.8%, to 781.4 million birr in the budget year that ended last June, while the paid capital of the bank increased, by 26.2% to 213.4 million accounting for 91.8% of the total capital and reserve of the Bank.
Deposits at BIB reached 491.3 million birr with 57% made up saving deposits. The number of deposit customers showed a significant increase reaching 12,600 for the fiscal year.
Source: The Reporter
