By InvestAdvocate
Lagos (INVESTADVOCATE) – There are indications that Savannah Bank of Nigeria Plc has commenced the refurbishment of its Branch network in preparation to commence operations in December 2011. A Source name (withheld) close to the Bank disclosed this to InvestAdvocate.
The Source affirmed that out of the four Branches of the Bank in Aba South East Nigeria, it is only the main branch in the city that was seen currently undergoing renovation.
“They have started painting the main office with the usual Savannah Bank touch, this will be done to all the main branches in other areas; where verification will subsequently take place before the main Banking operations resume†the Source said.
We further gathered that Savannah Bank which was prior to this time given 18 months by the Central Bank of Nigeria (CBN) to recapitalise to the tune of N25 billion, have already offered 70 percent (70%) equity stake of the Bank to core investors.
“On recapitalisation, I learnt that they are quietly doing this by offering 70% stake to core investors; though I do not know their names; but as soon as Regulatory approval is sought, we may commence operations before the end of the year†the Source said.
Savannah Bank, whose licence was restored about 29 months ago and was ordered to be reopened in February year 2009 by the Court of Appeal in Abuja Nigeria. The recapitalisation period given to the Bank by the CBN was 18 months period.
As at October year 2010, verification exercise of assets and renovation was reported to be going on in the Bank.
Savannah Bank’s licence was revoked in February year 2002 and restored in February 2009; after long legal battles with Nigeria’s Central Bank.
The reason for the withdrawal of the licence according to Joseph Sanusi, former Governor of the CBN was that the Banks asset was not adequate to meet up with its liabilities.
Apart from these, the Bank was said to have not met its obligations to customers; coupled with Boardroom crisis and depleting shareholders funds; all led to the revocation of its licence.
As earlier reported, an investor, International Resource Associates of London, bought 67.35% of the shares of the Bank in 1999. Following this development, a new Management took over the helms of affairs in April 2000 with former Governor of Anambra State, South East Nigeria Jim Nwobodo, emerging the Chairman of the Bank.
Savannah Bank prior to its close down had 140 branches across Nigeria, and it was reported in February 2010 that the Bank owners might be trying to raise over N100 billion through an International Private Placement (IPP), and the Bank was ready to buy up Non-Performing Branches of troubled Banks in Nigeria.
As at the time of filling in this Report, InvestAdvocate sought to confirm this development from the CBN via a text message sent to Sanusi Lamido Sanusi, Governor of Nigeria’s Central Bank and Mohammed Abdullahi, its Head of Corporate Communications
Sanusi’s reply reads thus: “Central Bank is not the place to ask, why don’t you ask Savannah†the text said.
While Abdullahi’s reply reads: “Pls contact Savannah Bank owners for that confirmation. CBN as you are aware has restored their Banking Licence on Court Order†the text explained.
However, an Industry Analyst who spoke on condition on anonymity said that whatever Savannah Bank is doing, without the approval of the CBN, they will not make headway.
â€ÂÂThey may have the Court order that their Licence be restored, but whatever they are doing to resume operations would have to be sanctioned by the CBN†the Analyst said.
InvestAdvocate was unable to confirm this development from Savannah Bank before publishing the story.
