Cavmont bank struggles to catch up with technology

Cavmont Capital Bank (CCB) says it will by next month introduce ATM cards which the bank doesn’t have at the time.

CCB acting director  Phillip Chibute disclosed Tuesday that the bank has emabrked on a programme of repositioning itself .

And Mr. Chibute disclosed that Capricorn Investment Holdings of Namibia has been brought on board as an investment partner.

Mr. Chivuta was speaking during a media breakfast at Southern Sun hotel in Lusaka.
He disclosed that the bank has identified the agricultural sector where it has partnered with government to alleviate the sufferings of the rural farming community.

And Mr.  Chibute has appealed to government to put in place some parametres surrounding administration of interest rates by commercial banks.

He explained that financial institutions are finding it very difficult to realise a profit because of government working with the central bank and supervising commercial banks in the country has put a measure called the Statutory Reserve that attracts an eight per cent payable to the Bank of Zambia (BoZ).

The Acting CCB Chief said at the moment, it is difficult for commercial banks to lower interest rates in this prevailing conditions that are not favorable to commercial banks.

Mr Chibute projected a K50 billion profit this year with a working capital of over K200 billion, adding that the bank recently listed on the Namibian Stock Exchange investment largely in insurances and asset management among other long term measures to broaden its assets and liabilities.

And the bank says the past  five months ending May 31, 2009, the bank’s performance has been merely in a break even position.

The bank says the five months presented a very serious challenge in terms of profitability, balance sheet and deposit growth.

But Mr. Chivuta said no employyes will lose their jobs despite the global financial crisis. He said instead the bank will employee more people to work on its repositioning project.

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