dfcu Bank headquarters in Kampala
The Assistant Registrar of the High Court (Land Division) on Friday issued a ruling mandating dfcu Bank to hand over the 48 properties that had been transferred to the entity by Bank of Uganda (acting as then Receiver of Crane Bank Limited [CBL]) as part of the Purchase of Assets and Assumption of Liabilities Agreement (P&A).
It’s on record that the Bank vacated the said properties in 2020 and therefore, complying with the Court ruling has no impact on dfcu’s operations.
It should be noted that as part of the Purchase of Assets and Assumption of Liabilities Agreement (P&A), dfcu Bank took over 48 leases of the former Crane Bank Limited (CBL) branches in 2017. The transfer of the leases was done pursuant to the statutory powers of Bank of Uganda (acting as then receiver of CBL).
Meera Investment Limited sued dfcu Bank and the Commissioner Land Registration challenging the transfer of the 48 leases by Bank of Uganda to dfcu Bank. In 2019, following the terms of the P&A, dfcu Bank exercised its right to return the properties to Bank of Uganda and commenced the process of return of the properties to Bank of Uganda.
On 24th October 2023, the High Court of Uganda issued a judgement in which it ordered the Commissioner Land Registration to cancel the transfer of the properties to dfcu Bank, and for the Bank to grant Meera Investment vacant possession of the suit properties within a period of three months from the date of the judgment.
“dfcu Bank is fully indemnified by Bank of Uganda under the P&A agreement,” a Lawyer says.
“dfcu remains strong and well-capitalized, meeting all the needs of its customers and fulfilling its purpose of transforming lives and businesses in Uganda,” the bank says.
Dfcu bank’s total assets increased by 3.35% to Shs3.28 trillion up from Shs3.17 trillion, while customer deposits increased by 5.7% to Shs2.41 trillion in 2022, up from Shs2.28 trillion in 2021.
