ZABG will rebrand to Allied Bank in response to customers expectations after a major restructuring of its shareholding, board chairman Farai Mutamangira said last week.
Report by Our Staff
An investment vehicle, Trebo & Khays, owned by Mines and Mining Development minister, Obert Mpofu, bailed out the bank from closure early this year by agreeing to invest under an asset-backed transaction.
The bank was tottering on the brink of closure after failing to secure an investor to help the institution meet the then minimum capital requirements of US$12,5 million.
The rebranding exercise was recently approved by the bank’s board and the Reserve Bank of Zimbabwe (RBZ) last week gave the institution the go-ahead to proceed with the process.
Mutamangira said the board had realised that the old brand would not carry the organisation forward, as most customers were expecting a new outlook.
“We are reacting to expectations of our customers. Most banks that have taken massive restructuring and shareholding level had to rebrand,” he said.
Kingdom rebranded into AfrAsia Kingdom after a Mauritian bank acquired a 35% shareholding in the institution, ReNaissance Merchant Bank was transformed into Capital Bank when the National Social Security bought 84% of the entity.
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Mutamangira said the rebranding infuses “new energies into our efforts to grow the bank”.
Mutamangira said the bank was on course to meet the first phase of minimum capital requirements deadline of US$25 million by December 31.
Commercial banks are supposed to have minimum capital of US$50 million by June 30 next year, US$75 million by December the same year and US$100 million by June 30 2014.
