Duma praises development bank’s ‘significant results’

The National Business

THE National Development Bank (NDB) and its subsidiaries achieved significant results in 2017, says Minister for Public Enterprises and State Investments William Duma.
Duma, in his ministerial statement on the 2017 annual report of the NDB to Parliament on Tuesday, said the bank also achieved other outstanding results.
Among the achievements was the increase in the lending to women entrepreneurs under the NDB women-in-business portfolio by K9.3 million in 2017.
It was also reported that the bank increased its customer saving accounts at People’s Micro Bank by 17 per cent to 89,000 in 2017 from 77,000 in 2016, and lent K6.2 million.
Duma said the bank was the key implementing agency for the 2016-2030 National SME Policy.
This is a policy Government will use to grow the indigenous private sector to reverse the current imbalance of businesses owned by citizens from 10 per cent now to 70 per cent by 2050.
Duma said that in line with those policies, the bank had already made significant growth and progress in promoting and supporting the implementation of Government’s economic development policies through its lending programmes for inclusive and sustainable economic growth. This was done through its two subsidiaries, People’s Micro Bank and NDB investment.
People’s Micro Bank offers loan products and savings accounts to micro and small businesses, including the informal sector, while NDB offers business incubation products to its customers who want to operate under different business models.
Duma said NDB had the capacity and capability to offer electronic banking products, leveraging on modern digital technologies, to rural areas of PNG through its 29 branches operating in districts and provinces.
He said key performance highlights of 2017 included:

  • Lending of K75 million at concessional rates of 6.5 per cent per annum;
  • ensuring quality loans book by maintaining loan arrears over 90 days within two per cent, a good performance compared to commercial banks; and
  • Delivering a net profit of K2.233 million for People’s Micro Bank within four years since April 2013.