Family business-focused lender M Oriental Bank has revealed that it has stopped doing business with debt-ridden retailer Nakumatt.
Responding to a story carried by The Standard last month in which the retailer’s debt position was reported to have jumped from Sh18 billion to about Sh30 billion, M Oriental Bank said it no longer had exposure in Nakumatt.
According to the bank’s chief executive officer, Rakesh Kashyap, the Sh150 million loan that the bank had advanced to the retailer in August 2012 was fully paid back in February 2013.
“As of now, we do not have any exposure in Nakumatt. We do not have any business with them. Going by our size, we are very cautious not to take such a big hit,” said Mr Kashyap.
A loan statement for Nakumatt seen by The Standard indicates that the retailer cleared the loan on February 5, 2013.