By Azania Post Reporter
The government has halted plans by TPB bank in Tanzania to list its shares on the Dar es Salaam Stock Exchange (DSE) as earlier announced by top bank’s official.
Speaking in a telephone interview, the bank’s Chief Manager Corporate Affairs, Noves Moses, said it is correct that the bank had planned to launch an Initial Public Offering on the exchange.
“It is true we had such plans but later on the government through (Ministry of Finance and Planning ) halted it,” she said.
However, she declined to state the grounds that led to the halt or whether such plans would resume in near future.
The bank’s Chief Executive Officer Saba Saba Moshingi was once quoted as saying they were undergoing a transformation that would see significant changes in its computation system.
"We are going to get listed on the stock market, and we have hope that Tanzanians would support us through buying the shares that would enable us to get money for purchasing the new digital system," he told the Parliamentary committee accounts (PAC).
The bank's move was in line with the finding remedy to the current weaknesses brought by the manual operations for some of the services.
TPB, established under Act of Parliament in 1992 as a corporation, needs to change its status and obtain a new license before going public to raise the required capital to become a fully commercial bank.
One of the DSE listing requirement is to generate profit for three consecutive years and to have a sound balance sheet.
Recently it was stated that TBP shareholders had plans to increase the bank's capital in the next five years, a move that will give it an extra boost on executing its services, mostly to SMEs.
In 2010, the Bank of Tanzania (BoT) raised the minimum capital requirement for commercial banks from 5bn/- to 15bn/-.
TPB Bank PLC was formerly known as Tanzania Postal Bank Limited and changed its name to TPB Bank PLC in March 2016.
The company was founded in 1992 and is based in Dar Es Salaam, Tanzania with branches scattered all over the country.