Spire Bank eyes a boost in liquidity in auctioning defaulters

Mwalimu Sacco wholly owned Spire Bank is counting auctioning defaulters properties to boost its liquidity ratio and recover from losses.

In its financial statement, the lender has over 150 liquidation cases pending in court against borrowers who have defaulted on loans worth over Sh1 billion.

The lender said in its annual report that the bank has close to Sh1 billion assets being recovered by way of auction sales of collaterals. Many matters that had been stuck in court have now been resolved and the recovery process is now on track.

Mwalimu Sacco chairman Wellington Otiende said that partial opening of courts due to Covid-19 has delayed the banker’s loan recovery, with auctioneers also struggling to find buyers, blocking an offtake that would help banks get back their money to invest it in more fruitful ventures. He added that the board of Mwalimu Sacco and that of the bank have embarked on an aggressive search for new capital injection in the form of equity in order to return shareholder funds into the positive side.

Leave a Comment

Your email address will not be published. Required fields are marked *