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GCB Bank Planning To take Over National Investment Bank Soon

A couple of weeks ago, Capital Bank and UT Bank were taken over by GCB Bank Ltd.

Just when we thought all was said and done, new information reveals NIB may soon be taken over by GCB Bank also.

According to the news as reported by the Daily Graphic, GCB Bank Limited has begun overtures to takeover state-owned lender, the National Investment Bank (NIB), in what could create the biggest bank in the country in asset terms.

Sources indicate that preliminary discussions on a possible takeover had begun at the board level between the two banks and are expected to prepare the grounds for a deal later in the year.

It said discussions about the takeover were at the behest of the two banks’ common shareholder – the government – and meant to ensure that GCB was “well narrowing prepared to swallow NIB.”

Unlike the NIB, which is 100 per cent state-owned, the government and other quasi-state institutions, including the Social Security and National Insurance Trust (SSNIT), the Ghana Reinsurance Company and Ghana Cocoa Board (COCOBOD) hold a majority stake of 52.5 per cent in the GCB Bank.

This makes a takeover of NIB by GCB Bank Ltd easier because the deal will only require the blessing of SSNIT the bank’s biggest shareholder with a 29.89 per cent stake and the Ministry of Finance (MoF), which manages the government’s 21.36 per cent stake.

It is actually because of the potential takeover that a substantive Managing Director for NIB has not been appointed. The idea is to merge NIB with GCB Bank so that NIB can become a department in charge of project financing, among others,

Since August, last year, when Mr Ernest Marlie Agbesi resigned from NIB to manage GCB Bank (he later resigned in June, this year), Mr John Kweku Asamoah has been the acting MD of NIB, pending a substantive appointment, the source said.

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