The Board of Directors of Bank of India has decided to continue the operations of their subsidiary, Business Focus exclusively reports.
Ajah Panth, the Bank of India Uganda Managing Director revealed that the decision was taken in a Board meeting held on 20th March 2018 in India.
Earlier on 19th February 2018, Bank of India Uganda had informed Bank of Uganda on the decision of Bank of India to consolidate its overseas operations and that Uganda subsidiary was identified for closure along with some other foreign centres.
“It was inter alia informed that final approval for closure of Bank of India (U) Ltd was required to be taken from Board of Directors meeting to be held in March 2018,” Panth said.
He noted that Bank of India Uganda is one of the best performing banks amongst the new banks in Uganda in terms of business growth, asset quality and profitability. The bank has been making profits since inception in 2012.
It was the 15th most profitable bank in Uganda in 2016. It made a net profit of Shs2.3bn, up from Shs1.2bn in 2015. Its total assets also increased by 33.9% to Shs156bn in 2016, up from Shs116.5bn in 2015. The bank’s customer deposits grew by 65% to Shs99.1bn in 2016, up from Shs59.8bn. Loans advanced to customers also grew to Shs71.9bn, up from Shs50.8bn in 2015.
The bank is said to have made Shs4bn in net profit in the year ended December 2017.