One of Ethiopia’s private banks, Abay Bank S.C., disclosed it made 93 million Birr profit during the first six months of its current fiscal year.

Abay’s President, Mesenbet Shenkut, said, “Services tailored to the low rank seating community groups gives us the way to perform well by promoting financial services in remote areas and we are strengthening our effort to do better.”

“We know that at the end of 2016, the National Bank will require us to have 500 million Birr paid up capital and we currently have a paid capital of 486.7 million Birr. We will make decision at the next general meeting which will take place after two weeks how we can achieve the boundary line.’’

The two options the general meeting will consider are to sell more shares or raise shareholders’ deposit.

The Bank also disclosed it will soon start giving interest free banking service in the aim of addressing Muslim customers who does not want to take interest from their saving account.

The president noted Abay is acknowledged by Nation Bank of Ethiopia (NBE) to offer the banking service and it is now working on technical issues to launch the service. “Since we have branches all over the country, the new service will attract many Muslims that want the free interest banking system,” she said.

She further explained Abay is going to start giving special privilege loans to carbon emission reduction projects. “As citizens, we want to make a contribution to reduce the impact of climate change and what we are planning now is to give long term loans for those who request us to support carbon reducing projects.’’

According to Mesenbet projects that will recycle and reduce carbon emission are the projects that will be addressed with this scheme.

It was back in November 2010 that Abay Bank started operation with a subscribed capital of 174.5 million Birr.

Source: Capital