Abay posts 93 million birr profit


Abay Bank S.C announced a 93 million birr gross profit made in the first six months of this fiscal year.

The total capital of the bank reached 579 million birr, the paid up capital reaching 486.7 million birr and total outstanding loan standing at 2.12 billion birr.
The bank’s President Mesenbet Shenkut said, “Services tailored to the low rank seating community groups gives us the way to perform well by promoting financial services in remote areas and we are strengthening our effort to do better.”
“We know that at the end of 2016, the National Bank will require us to have 500 million birr paid up capital and we currently have a paid capital of 486.7 million birr. We will make decision at the next general meeting which will take  place after two weeks how we can achieve the boundary line.’’
Selling more shares or raising shareholders’ deposits are the two options the general assembly will discuss to meet the National Bank requirement.
Abay also announced that it will soon start interest free banking service to serve better Muslim customers who does not want to take interests from their saving account.
Mesenbet said that the bank is acknowledged by the National Bank of Ethiopia to offer the interest free banking service and it remains with the adjustment of some technical issues to launce the service. 
“Since we have branches allover the country, the new service will attract many Muslims that want the free interest banking system.”
The president also indicated that the bank is planning to give special privilege loans to carbon emission reduction projects.
“As citizens,  we want to make a contribution to reduce the impact of climate change and what we are planning now is to give long term loans for those who request us to support carbon reducing projects.’’
Recycling projects which are known for reducing carbon emission are projects that will be given precedence in the carbon reduction projects financing plan, Mesenbet said.
Abay Bank started its operation in November 2010 with a subscribed capital of 174.5 million birr.