Johannesburg - South Africa's African Bank Investments said on Thursday it had agreed to a fine of 20 million rand ($2 million) to settle an investigation into reckless lending by the credit regulator.
The amount is miniscule compared to the 300 million rand fine the regulator had demanded from South Africa's biggest unsecured credit lender in February, following an industry-wide probe.
Shares of the bank, known as Abil, rose nearly 2 percent shortly after it announced the size of the fine.
The stock traded 1.6 percent higher at 15:12 SA time.
Abil carried out its own investigation into reports of bad lending practices in 2011 that uncovered 15.5 million rand of loans lent fraudulently, it said earlier this year.
South African banks have been pushing high-margin unsecured loans in the past few years but Abil, which targets the lower end of the market, has been worst hit by ballooning bad debts.
It warned last month that its full-year earnings could fall by as much as 63 percent following a loss at its furniture retail unit and after setting aside higher provisions for bad debts. - Reuters