Managing Director, Dr Charles Kimei said in Dar es Salaam last weekend that plans are underway to ensure that CRDB Microfinance Company becomes a bank and its insurance brokerage business becomes a completely separate company as the bank heads towards becoming CRDB Group.
Dr Kimei said as the bank continues to grow with micro-financing and insurance businesses doing well, there is need to diversify and make them separate entities. “We want to transform CRDB Microfinance Company into CRDB Microfinance Bank and insurance broker also into a separate company,” the CRDB chief noted.
He said the two businesses and CRDB Bank Burundi are doing very well hence contributing to the parent company’s good performance. “We have a lot of clients doing business in Burundi and our performance is not bad, last year we made 1.1bn/- profit,” he said noting that his management’s ambition is to see their services are available every 20 metres in the country.
“Though agent banking we hope to achieve this feat soon,” he stressed as one of the country’s largest commercial banks basks in years of good growth and profitability.
Meanwhile CRDB Bank Plc has set aside one percent of it’s over 120bn/- profit to support community services as part of its corporate social responsibility. In a statement, the bank said last year it used 1.2bn/- for CSR activities financing schools, hospitals and the needy.
As part of the 20th anniversary last week, the bank through First Lady, Janet Magufuli donated various products to Bukumbi Elderly Home in Mwanza worth 60m/-. Speaking during the handover ceremony, Magufuli paid tribute to the bank’s management for supporting government efforts to improve social services.
“It is important that businesses support the community and especially elders who are an important group in the community,” the First Lady said. She also challenged people who manage elderly homes to exercise prudence in management by ensuring that resources are better used.
Privatised in 1996 as Cooperative and Rural Development Bank, CRDB Bank Plc has growth dramatically in all aspects including the number of customers who have peaked over 1.8m against 120,000 then.
Backed by 2,600 committed professional staff members, the bank’s branch network has increased from 19 branches countrywide to 198 today. It has 461 ATM machines, a dozen or so of new products such as Tembo card, Visa and Master cards and accounts dubbed Diaspora, Junior Jumbo, and Malkia, among others.
Another new product is Simbanking which has over 500,000 subscribers and another one million who have not completed registration, according to Dr Kimei.
According to a recent Serengeti Advisors annual banking survey, CRDB Bank Plc has over 20 percent market share and is the largest in terms of net asset value, deposits and number of ATMs. Together with NMB bank, they control close to a half of the domestic market.