Abstract:
This study present a critical analysis of processes, strategies, element , problems and prospect of re-engineering a distressed financial institution with a view to understanding the travail and triumph of new Nigeria bank Plc. formerly ditre d ban and newly re-engineered bank as a case study. The changes in B Plc's ownership and Management structure, its short, medium and long-term development plans, processes undergo ne in its re vitalizing drive, products mix , problems and strategies for repositioning, as well as focus of the bank and its performance in its one year of re-entry into the banking market are analyzed. The entire members of the Board and management staff of new Nigeria bank were elected purposefully as respondents. Information was obtained from them with the aid s of well-structured questionnaire and checklist. Private individuals and privately owned corporate institutions now constitute the majority hare holders in the bank contrary to the former ownership structure in which former Bendel state (now Edo and Delta states) have majority interest of about 83 percent of the total shares. However, majority of the shareholders, Board Members and Management staff of the bank are indigenes of the former 0\ ner states of Edo and Delta states. Apart from recruitment of almost entirely new staff and renovation of the old branches, on-linev real-time computer system (PH0 IX) wa deployed to ensure networking of the branches. Retail banking, operation and customer service product s dominate the product mix of B Plc, these products are primarily targeted at driving th liabilit strategy of the bank. The study reveals that liquidity problem, high cost ~ f fund/cost of operation, low level of capitalization and negative perception of populace respectively top the list of numerous problems that threaten the realization of the bank's dreams. However, strategies adopted for victory in coping with the problems include aggressive marketing geared towards deposit mobilization, emphasis on excellent service delivery , recapitalization, adequate staff training, proactive management of the bank etc. Emphasis of the bank is concentrated on liability generation, service delivery, -retail banking, and information technology among others. However, in spite of the well-defined focus and the various strategies adopted the bank' s performance in its one-year operation as a re-vitalized bank was much below expectation. While profitability, customer satisfaction , and liquidity were respectively scored 15 percent, performance of Information Technology and market share were scored 10 percent and 35 percent respectively. Meanwhile, a major achievement of the bank is the growth of its total asset base from = =3 billion to =N= 12 billion.
