Posted by By Ayodele Aminu on
There are strong indications that one of the three banks that have conconcluded the on-going consolidation exercise may acquire Allstates Trust Bank Plc.
There are strong indications that one of the three banks that have conconcluded the on-going consolidation exercise may acquire Allstates Trust Bank Plc.
Allstates Trust Bank has been unable to meet its obligations to customers following the sudden withdrawal of N2 billion Nigerian National Petroleum Corporation (NNPC) fund from the bank by Central Bank of Nigeria (CBN).
THISDAY reliably gathered that the new mega bank has commenced due diligence and may wrap up the deal before the end of this month.
Interim Managing Director/Chief Executive Officer of the bank, Mr. Toyin Akin-Johnson in a letter to customers also confirmed the bank is in serious talks with some of the capitalized banks.
'We have begun talks with well capitalized banks with strong brand names, who have expressed interest in acquiring the bank. When the consolidation plans are successfully concluded, we are confident that there will be no loss of any of our depositors' funds.
'Also, the bank in conjunction with security agencies is embarking on a strong drive to recover all non-performing loans," the Allstates Trust Bank boss stated.
Besides, he said the bank is working closely with the CBN and Nigerian Deposit Insurance Corporation who will inject some funds into the bank in a very short while.
'We are glad to inform you that the new executive management has since last Friday 7th October 2005 resumed and together with the Interim Board of Directors, are determined to restore customers' confidence within the shortest possible time. The Bank is working closely with the Central Bank of Nigeria and Nigerian Deposit Insurance Corporation who will inject some funds into our Bank in a very short while.
''With the above programmes in place, we are confident that normal banking operations will be restored in the shortest possible time. In spite of the challenges we are facing which we believe is temporary, we remain a strong bank with 65 business offices linked up on-line and real time with the latest Information Technology banking software,"' he assured customers.
He therefore urged customers to remain patient and give the new executive management all the support needed to enable the banking operations to resume within the shortest possible time.
CBN had last week sacked the entire board and management of Allstates Trust Bank over alleged financial malpractices and appointed an interim board to put the bank through the on-going consolidation in the industry.
Chairman of the bank, Chief Ebitimi Banigo, was also arrested by the Economic and Financial Crimes Commission (EFCC) based on the recommendation of the CBN.
Banigo through his companies and cronies was alleged to have used his position to secure loan facilities worth N12 billion from the bank.
The interim board which assumed duty on October 07, 2005, is led by Mr. Offong O. Ambah, an accomplished banker of repute and Mr. Toyin Akin-Johnson as the Interim Managing Director/CEO. Mr. Akin-Johnson is a first class investment banker with about two decade of banking experience.
Other members include Mr. Eghes Eyieyien, Managing Director, Pharez - a credit rating agency and Mr. Tamuno N. George who would both serve as executive directors while Mr. Cyril Chukwumah and Mr. Gbolahan O. Folayan would serve as non executive directors.
Allstates Trust Bank was a pioneer member of the former First Consolidated Bank of Nigeria - the first merger group to emerge in the wake of the consolidation exercise announced by the CBN Governor, Prof. Charles Soludo last year.
The group comprised Allstates Trust Bank, Universal Trust Bank Plc, Lion Bank of Nigeria Plc, Gulf Bank of Nigeria Plc and Hallmark Bank Plc.
However under the new arrangement, Gulf Bank and Universal Trust Bank have joined the Union Bank Group while Lion Bank has pitched tent with Diamond Bank Plc. Hallmark Bank has also joined the Union Bank group