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Mutebile Refutes Plan to Take Over Bank of India Uganda

Bank of Uganda has Tuesday dismissed as “false” claims it intends to close or take over the operations of Bank of India Uganda Ltd, Chimp Corps report.

Reports yesterday indicated the Central Bank’s Deputy Governor Louis Kasekende had met with Bank of India Uganda’s top leadership and that it was decided to close the commercial bank.

In a statement issued on Tuesday, BoU Governor Emmanuel Tumusiime-Mutebile said there was “no meeting between the Deputy Governor and officials of Bank of India Uganda Ltd, as has been alleged.”

The articles raised fears Bank of India Uganda would be taken over just like Crane Bank in 2017.

Mutebile said 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 the depositors’ funds,” he emphasised.

According to the Bank of Uganda Annual Supervision Report 2016/7, the banking system remained safe and sound in the year to June 2017 with all banks meeting the minimum core capital requirement of 8 percent of risk weighted assets as at the end of June 2017.

However, there was a slowdown in lending recorded in the same period.

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