-Bank Woes Continues As All Share Index Drops By 4.1 Percent
Unity Bank Plc has not enjoyed a smooth ride in the banking industry for a while.
The financial institution has been riddled with several controversies with the most recent being a mass sack of its staffs.
Asides this, its banking business has been alleged to be taking a deep for sometimes now.
Also Read: Unity Bank Sacks 215 Workers
However, Dubai-based investment bank & brokerage firm Arqaam Capital has worsened the case of the non-performing financial institution.
According to the firm, Nigerian banking industry may be experiencing a full-blown financial crisis as failed fiscal and monetary policies lead to credit a crunch.
In its analysis, Arqaam Capital rates Unity Bank Plc as SELL, and Industry Watchers have translated this as an endorsement to investors to sell their stakes in the bank.
Other banks rated SELL includes FBN, Skye Bank Plc, Stanbic IBTC Holdings Plc.
Amidst the SELL ratings are rumour of panic among investors, as the safety of their investment is said to be in doubt.
Naturally, when the safety of investment is in doubt, panic withdrawals become the order of the day.
You may recall that Unity Bank Plc recently slid 4.1 percent on the Nigerian Stock Exchange All Share Index.
Reacting to the negative ratings by Arqaam Capital, Mathew Obiazikwor Head Corporate Communication Unity Bank Plc said “the rating by Arqaam Capital is not founded in the reality of our operation. According to him, the rating is not a reflection of the fortunes of the bank.
Obiazikwor answered thus when asked if he was demeaning the Bloomberg platform “I am not demeaning Bloomberg, but I will say it is not well equipped with data to do a balanced analysis.”
He added that the central Bank of Nigeria (CBN), had given Unity Bank Plc a clean bill of health.
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