@gatoho with the benefit of your dialogue with vvs, the answer is very simple- demand vs supply. The company is fundamentally sound but even a good company takes a beating now and then. Of course You reduce your risks when you buy low.

You got me there @ Vitu. Yeah I meant bid but as you can see I am In Kandara so abit behind though in the village Am Chief!

@vvs,hope you never dream of being a lecturer or something in that line.You seem to have little patience for persons showing the slightest knowledge gap or at least showing it.

Interest income is actually why banks are doing this business.

A bank without Assets(loans) is in the wrong business, and a bank that is lending non perfoming loans is at risk of shutting down as its not only LOOSING interest income but at risk of loosing its depositors money(Liabilities).

And is it just coincidental that KCB has been lending to this companies that are folding up?

The lending of huge amounts by banks to coporates is through the advice of Coporate managers of the bank. They have been doing a shoddy job in accessing the credit worthiness of these companies.

I want to believe and also that they are at the top of the list of 1000 that are going home.

@vvs



Uchumi is out of the woods, at least there is nothing to worry about there.

Triton - KCB is well covered with the securities that were charged and of which some have already been sold - nothing much to worry about.

Panpaper - in all these, even if they go bad, the bank is only affected if it cant realise its owed amount through the securities it is holding....