By Okechukwu Nnodim

The three Deposit Money Banks that were recently nationalised by the Federal Government on Tuesday liquidated the N170bn loan they obtained from the Central Bank of Nigeria in 2009.

Mainstreet Bank Limited (former Afribank Plc), Keystone Bank Limited (Bank PHB Plc) and Enterprise Bank Limited (Spring Bank Plc) paid back the loan with the knowledge of the Asset Management Corporation of Nigeria, which acquired them.

According to AMCON, Mainstreet and Enterprise banks paid N50bn each to the CBN, while Keystone Bank paid N70bn.

The Managing Director, AMCON, Mr. Mustapha Chike-Obi, in a telephone interview with our correspondent said, “The three banks paid N170bn plus interest to the CBN today (Tuesday).”

The apex bank had in 2009 injected N620bn into eight rescued banks in order to recapitalise them and restore confidence in their operations.

Two of the banks said in Lagos on Tuesday that they were no longer indebted to the apex bank, as they had cleared their indebtedness and the accrued interests on their loans.

Mainstreet Bank said in a statement, “MBL, a fully recapitalised bank, today (August 9, 2011), demonstrated her financial strength by repaying the N50bn tier-two capital obtained by the former Afribank Nigeria Plc on August 14, 2009. With the payment of the long-term bail-out fund, MBL is no more indebted to the apex bank arising from the operations of the former Afribank.

“MBL is now well positioned to fulfil its financial obligations. The loan repayment is a demonstration of the bank’s strong liquidity position. It is also an assurance of the safety of customers’ deposits and a demonstration of the bank’s capacity to play big in the banking industry.”

Similarly, the Managing Director, Keystone Bank, Mr. Oti Ikomi, said the bank had met the CBN’s minimum capital requirement of N25bn.

He said, “I am confirming to you right now that Keystone Bank has repaid fully the CBN loan. Our shareholder has fully capitalised the bank. The previous negative capital fund that we had has been improved because there has been an injection and we have now met the full minimum capital requirement of N25bn required for a bank in Nigeria.

“Keystone Bank is also meeting all the required capital adequacy of the CBN. We want to assure all our customers that this is a bank that we will run professionally. We are in touch with all our regulators; we are in touch with our international correspondents and our business will grow.

“Our intention is that in the next two to three years, we shall fully reposition this bank into an enviable institution in Nigeria and position it for a proper ability to attract new investors. It is not the intention of AMCON, who is our 100 per cent shareholder, to remain in this institution.”

Oti further noted that the bank would comply with the proposed cashless economy of the CBN, and thanked the previous management of the bank.

He said, “The whole transformation to a cashless economy will be well supported by Keystone. We intend to be very strong in commercial and retail banking and to meet the need of our corporate clients. We will be completing our re-branding exercise very quickly. Keystone is here to serve Nigerians and for the benefit of Nigeria.

“I also want to take this opportunity to thank the previous Managing Director, Mr. Cyril Chukwuma, and the outgoing executive directors for the work they did in the last two years.”

Source: Punch