President Hakainde Hichilema has hailed the positive financial performance of Indo-Zambia Bank (IZB) over the last 39 years of its existence, attributing its success to the synergies of both Zambia and India in achieving economic growth.
The bank, currently the fifth best in the country by profits, was established in October 1984 and is 40% owned by the Industrial Development Corporation (IDC) while the rest of the stake is jointly owned by Indian financial institutions namely, the Bank of Baroda, Bank of India and Central Bank of India (with a 20% stake each).
President Hichilema said while officially opening Indo Zambia Bank’s new Corporate Head Office in Lusaka that the success of the bank was testament to the value of the two countries working together for the common good.
With 35 branches across 10 provinces, IZB is making significant strides in contributing to development of the economy through its banking services, as well as its activities in funding key economic sectors, supporting the National Budget, the Comprehensive Agricultural Support Programme, the Social Cash Transfer Programme and management of the Constituency Development Fund.
The bank remains one of IDC’s subsidiaries that consistently declare dividends year on year, a development that President Hichilema said was important for the growth of the economy.
President Hichilema reiterated IDC’s strategic focus to reinvest the dividends it receives from subsidiaries to create more wealth and jobs for the country.
Speaking earlier, IZB Board Chairperson Dr Michael Gondwe said the construction of the Corporate Head Office was a decision taken by the Board of Directors as the bank was nearing 40 years of existence.
“The building symbolizes our bank’s pivotal role in the country and its complimentary role to Government’s efforts aimed at spurring economic activities,” Dr Gondwe said.
He said the new building was also a befitting dedication to the memories of the bank’s visionary founders, former Zambian President Dr Kenneth Kaunda and former Indian Prime Minister Indira Ghandi.
The new building is located at the intersection of Addis Ababa Drive and Great East Road in Rhodes Park.