Oriental Commercial Bank formally rebranded to M-Oriental Bank on Wednesday.
Its new Tanzanian majority shareholder Bank M Tanzania Plc said they will target family businesses in Kenya.
“M-Oriental Bank is being repositioned as a whole sale bank focused on large family businesses in Kenya offering innovative products and services,” said Mr Sanjeev Kumar, M-Holdings Group chief executive officer, in Nairobi during the unveiling of the bank’s new identity.
Mr. Kumar said M-Oriental will seek to replicate a niche business model that has seen the Group’s Tanzanian unit attain success in banking individuals and family businesses with high net worth.
He added that the majority of the lenders in the Kenya’s banking sector operate universal banking models which neglect the high net worth individuals and families.
“We have created Bank M as a strong whole sale bank in Tanzania and we aspire to transform M Oriental as the preferred bank for large family businesses in Kenya,” he said.
A first for Tanzania
On June 22, the Central Bank of Kenya (CBK) cleared the acquisition of a 51 per cent stake in the shareholding of Oriental Commercial Bank by the Tanzanian lender setting the stage for its entry into Kenya. Making Bank M become the first Tanzanian lender to enter the Kenyan market after 73 per cent of its shareholders under the M Holdings Group agreed to buy the 51 per cent stake in Oriental Commercial Bank.
The regulator also approved an application by M Holdings Limited to form a Non-Operating Holding Company as required by law as well as a change of name from Oriental Commercial Bank Limited to M Oriental Commercial Bank Limited.
M-Oriental chairman Shanti Shah said the lender would now bolstered by its new shareholders scale up its branches to ten by close of the year from its current eight.
In Tanzania Bank M currently has 305 families as clients. It was licensed in February 2007, and is focused on corporate and investment banking.
Bank M has a deposit base of Sh31.8 billion and a loan book of Sh33.5 billion.
Oriental Commercial Bank now M-Oriental recorded a profit drop for two years in a row last year after it posted net earnings of Sh43 million down from Sh72 million in 2014 and Sh140 million a year earlier. It has a deposit base of Sh6.2 billion and a loan book of Sh5.2 billion.