Diamond bank gets Cash Injection Offer to boost capital ratio

Diamond Bank Plc, has gotten an offer from a major investor who is willing to inject cash by increasing its stake that would enable the tier two lender boost its capital adequacy ratio above the Central bank threshold of 15 percent maximum, Seyi Bickersteth Outgoing chairman for the firm told Bloomberg.

The proposal he said was on the condition that Uzoma Dozie, resigns as Chief Executive Officer for the firm. He however did not mention the name of the investor.

Diamond is one of a number of smaller Nigerian lenders struggling to maintain a regulatory requirement for banks with international operations to have reserves of capital that cover at least 15 percent of outstanding loans. The company’s ratio stood at 16.3 percent at the end of September, according to the central bank.

Standard & Poor’s on Tuesday cut Diamond Bank’s rating to CCC+/C from B-/B, citing pressure on capital and foreign-currency liquidity.