adminrecapitalisation of its main subsidiary Trust Bank is being worked on, the company said in a statement yesterday.
Trust Holdings owns 100 percent of the bank. It said the decision was in compliance with the ZSE listing rules.
Trust Bank, as a commercial bank, will be required to have a minimum capital base of US$50 million by the end of June this year. Commercial banks will be further required to raise their minimum capital levels to US$75 million by December 31 and be fully complaint at US$100 million by June next year.
Since last year, Trust Bank has been trading under recapitalisation-linked cautionary statements.
“We confirm that the ZSE acceded to the request and as such, trading of the shares was suspended as of 31 May 2013,” said THL in a statement signed by its company secretary, Mr George Kaseke.
Trust Holdings last traded on March 28 this year at US0,8c and by the time it was suspended, it was offered at US0,4c. During the first week of April, Trust Bank failed to meet some of its financial obligations after a number of its clients failed to access their funds, as fears mounted it could have lurched into a liquidity crunch.
But the bank said it had concluded negotiations with an investor who would inject US$9 million for recapitalisation. The bank also said it was also negotiating for an additional US$4 million in working capital.
In February this year, the RBZ said Trust Bank was among some financial institutions that failed to meet the US$25 million minimum capital threshold for December 31 2012. Other institutions were Agribank, FBC Building Society, ZB Building Society, Allied Bank and Capital Bank.
Trust Bank was founded in 1996 as Trust Merchant Bank and transformed its banking licence to a commercial banking licence four years later. It then started operating Trust Banking Corporation.
The bank became one of the fastest growing banks in Zimbabwe and by 2003, it had become the largest bank in the country in terms of balance sheet. However, its growth came with several problems.
In 2004, it was closed down by the Reserve Bank on allegations of engaging in non-core activities.
Its assets were merged with those of Barbican Bank and Royal Bank, both of which were shut down by the central bank to form Zimbabwe Allied Banking Group, now Allied Bank.
In September 2010, the RBZ re-issued the commercial banking licences of the three banks. ZABG also retained its licence. Trust Bank resumed banking business as a self-sufficient entity on December 13 2010.
Online Reporter