Namibia Business School (NBS)

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Browsing Namibia Business School (NBS) by Subject "Agribank"

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    An investigation into the causes of customer loan default at the Agricultural Bank of Namibia, Oshakati branch
    (University of Namibia, 2021) Namupala, Victoria N.; Chirimbana, Moses
    Agribank has faced credit risk of borrowers not repaying loans on time as per the loan contract. This has resulted in financial losses to the ban . The Bank is concerned with the low rate of loan recovery on its scheduled loan instalments. This concem is due to clients defaulting, resulting in a persistent growth in the arrear loan book. Though the bank has adequate security in place for its loan portfolio, the impact of a low rate of debt collection on its liquidity remains a cause for concern. This study sought to investigate factors that cause customers to default on loan repayments on loans financed by Agribank. Due to strict privacy of the Bank, information was only assessable to the authorised persons. The mixed method approach was adopted for the study. The study used a semi-structured questionnaire for customers and a semi structured interview guide for staff members. The sample size was 187 participants that comprising of 37% female and 63% male, with the biggest age group of 41-50 years contributing 44.9%. The loan accounts represented in the study were livestock, h01iiculture, tractor, and poultry. The study identified that poor loan-monitoring and follow-up, poor credit risk assessment, high interest rates, and grace period were the specific factors from the bank's side that affected the level of loan repayment. On the other hand, business experience, loan size and multiple loans, loan diversion and, other income were the reasons for defaulting from the customer's side. This study recommends that Agribank should enforce its loan monitoring officers to always follow up on the loans taken and to strengthen credit risk assessment. Training workshops were suggested for customers in areas that concern credit or loans, its sustainability, and activities that are considered to help the repayment of the loans or that lead to defaults thereof
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    An investigation into the effect of rewards on employee motivation: A case study Agribank, Windhoek
    (University of Namibia, 2017) Zamuee, Asnath
    The primary objective of this study is to examine the relationship between rewards and employee motivation. More specifically, the study aims to analyze the effectiveness of the current reward system at Agribank in motivating employees. The theoretical part of the study introduces different theories of motivation and rewards. Emphasis is put on Maslow's hierarchy of needs, two-factor theory, the goal setting theory and the total reward system. Eight intrinsic and extrinsic factors which denote employee motivation are utilized, as follows: 1) Salaries; 2) Fringe benefits; 3) Promotion; 4) Job security; 5) Recognition/Appreciation; 6) Empowerment and autonomy; 7) Challenging tasks; and 8) Sense of achievement. The empirical part of the research was conducted using quantitative research design. A self-developed questionnaire with closed-ended questions was administered to respondents. Data was analysed using SPSS statistical software. Six hypotheses were developed, interpreted and tested using Chi-square goodness of fit. The population in the study is 120 and consist of employees in job grades A1 to D3, which are the non-managerial employees. Simple random sampling was used to arrive at a sample of 80. Seventy three (73) questionnaires were returned, translating into a response rate of 91.25%. The result indicates that there is a positive association between intrinsic and extrinsic rewards and motivation. Accordingly, if rewards and recognition offered to employees were to be altered, then there would be a corresponding change in employee motivation and satisfaction. The results also revealed that the current remuneration philosophy at the bank is competitive but marred with inconsistencies and unfairness in the allocation of performance-based rewards. As a result thereof, team spirit is seriously compromised to the extent that it negatively impacts performance.