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[2009-10-14]
NSE lifts suspension on Bank PHB, Spring Bank shares
| THE Nigerian Stock Exchange (NSE) yesterday, lifted its technical suspension on the shares of Bank PHB Plc and Spring Bank Plc.
Shares of the banks were placed on technical suspension last week Monday by the NSE, following their indictment by the Central Bank of Nigeria (CBN)'s last audit report.
NSE's Assistant General Manager and Head Corporate Affairs, Mr. Sola Oni said the suspension is a joint decision reached between the Securities and Exchange Commission (SEC) and the NSE, adding that the "basis for the suspension" has been addressed.
However, investors' interest in the banks dropped yesterday, as there was a dip in their share prices. Platinum Habib Bank shed N0.16 to close the day at N3.17, while Spring Bank lost N0.14 to close at N2.78 per share.
Following the outcome of the audit by the CBN on the examination of the remaining 14 banks in the country, the apex bank recently, officially announced the sack of three banks' managing directors and their executive directors having found the banks wanting in the area of liquidity, capital adequacy and corporate governance.
The affected banks' chiefs include, Mr. Francis Atuche of Bank PHB Plc, Mr. Ike Oraekwuotu of Equitorial Trust Bank, and Mr. Charles Ojo of Spring Bank Plc.
They were replaced by Mr. Cyril Chukwumah for Bank PHB Plc, Mr. G.O. Folayan for Equitorial Trust Bank and Mrs. Sola Ayodele for Spring Bank Plc.
Similarly, the apex bank also ordered the removal of all Non-Executive Directors in Spring Bank Plc, as well as the removal of Dr. Mike Adenuga as a Non-Executive Director of Equitorial Trust Bank.
Also, the apex bank ordered Wema Bank Plc and Unity Bank Plc to recapitalise by June 30, 2010 noting that Wema Bank Plc came under new ownership and management in June 2009 who took over a bank already in a grave situation and should not be held responsible for the present condition of the bank, while Unity Bank Plc was adjudged to have insufficient capital for its current level of operations but was adjudged to have a healthy liquidity position and with no indication of poor corporate governance practices.
With the conclusion of the banks' audit exercise, CBN explained that its ongoing action will "focus on building capacity within the regulatory regime; fast-tracking the implementation of risk-based, consolidated and cross border supervision frameworks; easing the flow of credit, particularly to the real sector of the economy; improving governance structures and practices in the financial services sector; and improving confidence in the economy in general".
Source:© Copyright Guardian Online
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