By Segun Olatunji, Kaduna

Unity Bank Plc has said that it will divest more than N6bn worth of investments from its seven subsidiaries and three associated companies.

The bank also disclosed that it had succeeded in recapitalising by raising more than N17.7bn via rights issue, thus increasing its shareholders’ fund to about N42bn.

The Group Managing Director, Unity Bank, Alhaji Falalu Bello, stated these on Saturday in his address on the occasion of the bank’s “special day” at the ongoing 32nd Kaduna International Trade Fair.

According to Bello, the bank’s decision to divest from its subsidiaries was in line with the directive of the Central Bank of Nigeria.

He added that the CBN directive would enable banks in the country to reposition for efficiency and concentrate on their primary area of competence in order to serve their customers better.

The Unity Bank boss also said that the success of the bank’s recapitalisation efforts had resulted in the rise of its shareholders’ fund to about N42bn, making it one of the 50 most capitalised companies in the country.

Bello said, “As part of the bank’s preparation to serve you better and to have enough resources to do so, our bank recapitalised few months ago after raising more than N17.7bn via rights issue. This has enhanced the bank’s capacity to better support you and your businesses. As at today, Unity Bank is one of the 50 most capitalised companies in Nigeria.

“As at November last year, our bank’s shareholders’ fund rose to N42bn. Our shareholders have also unanimously mandated the board of our bank to divest more than N6bn worth of investments in its seven subsidiaries and three associated companies in compliance with the CBN directive to all banks.”

 

Source: Punch