(3 Minutes read)
Indo Zambia Bank – IZB- has defended its quarter three (3) 2023 record of having posted higher earnings from securities than the core business of making loans. The bank revealed that despite posting higher earnings from securities than loans, the bank has posted the second-highest loan-to-deposit ratio among the top 10 banks in Zambia, at the end of Q3 2023.
According to the latest Q3 quarterly results, the loan-to-deposit ratio stood out in comparison to its peers, some of which seem to also have concentrated more on investing in government paper at the expense of banks’ core business of raising deposits and making loans. The Indo Zambia bank’s management team is confident that it can continue to grow its loan book while maintaining a strong liquidity position and upholding its commitment to responsible lending practices.
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The bank’s Managing Director Kowdichar Shashidhar revealed that the bank’s deposits consist of both long-term and short-term deposits, with various tools and benchmarks employed to ensure that funds are channelled into the local economy through loans, while also meeting the liquidity requirements of depositors. There are also regulatory norms that the bank will have to follow while lending depending on the prudential norms set by the apex bank. Stipulations make it compulsory for banks to park part of their deposits into Statutory portfolios.
