Any business with non-performing departments or SBU's (Strategic Business Units) will need to reach that decision at some point to secure continued profitability. I don't think that sounds strange to me,it is the logical thing to do.

I however remember a while back on this forum,I had mentioned that Equity's growth rate was wanting and at some point they would need to slow down. I was booed and dismissed. May be I was wrong,but the truth is,branch expansion does not always automatically lead to reciprocate profitability. Some branches could actually be eating into the gains made.

I know of an Equity Branch,will not say which one,that is suffering a bit of losses in terms of loan defaults. Probably there are a few more and these could be the ones that have to be closed.

Anyone knows where provision for bad debts is charged? Of course in the profit and loss account,which directly translates into loss and not gain.



say it as it is

on to Rwanda
http://www.newtimes.co.r...13939&article=16947

Profitable growth is what counts. As any one would know as any organization grows it will generate some 'waste' - the smart organization will continually get rid of the waste and prune itself.
80/20 pareto principle works in real life for the average distribution. It's a source of innovative opportunity. Get rid of the unproductive parts and strengthen the productive ones. That's what Equity is doing,a sign of a management that is very much in tune with focusing on results and strengthening the model.
This bank should keep impressing for quite a while as long as they stay hungry and disciplined.