Bank Of Uganda have dismissed reports on social media alleging that Bank of India Uganda ltd was planning to quit the Ugandan market.

Rumor was rife that the Bank of India parent company in India had ordered the management of the Ugandan Bank branch to close shop by end of March in a restructuring exercise.

But Bank of Uganda quickly shot down the story as false and said Bank of India was profitable, solid and not going anywhere.

Here below is the bank of Uganda statement in full:

Reports circulating on social media to the effect that there was a meeting between BoU officials and Bank of India Uganda Ltd at which it was decided to close Bank of India Ltd, or that the Bank of Uganda has taken over the said bank are false.

Furthermore, there was no meeting between the Deputy Governor of the Bank of Uganda and officials of Bank of India Uganda Ltd, as has been alleged.

Bank of India Uganda is operating normally, is profitable and fulfilling all the regulatory requirements as set out in the Financial Institutions Act, 2004 as amended. There is no threat to the safety of depositors’ funds.

Prof. Emmanuel Tumusiime-Mutebile

According to published 2016 financial results certified by Bank of Uganda, the regulator of the financial sector, Bank of India Uganda has been doing good business.

They recorded a net profit of Shs2.3 billion an increase from Shs1.2 billion generated in 2015, making it the 15th most profitable bank in Uganda in 2016 out of the 24 banks in Uganda.

The banks total assets also increased from Shs116.5 billion in 2015 to Shs156 billion in 2016, up 33%.

Customer deposits grew by 65 per cent from Shs59.8 billion in 2015 to Shs99.1 billion in 2016 and loans advanced to customers also grew to Shs71.9 billion in 2016 up from Shs50.8 billion in 2015.

Bank of India Uganda managing director Ajay Kumar Panth said the bank was doing well.

“To tell you the truth, this bank is doing well compared to other banks, it is making profits.”

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