dfcu Bank headquarters in Kampala
The High Court has ordered dfcu bank to vacate 48 leasehold properties belonging to the defunct Crane Bank.
In his ruling on 24th October 2023, Justice Tadeo Asiimwe 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.
However, this website understands that the court ruling does not affect the Bank’s day-to-day operations since the branches in question were vacated in 2020.
It should be noted that as part of the Purchase of Assets and Assumption Agreement (P&A), dfcu Bank took over 48 leases, which housed 48 former Crane Bank Limited (CBL) branches in 2017. The leases were transferred to dfcu Bank upon payment of sufficient consideration and the relevant taxes.
Meera Investment Limited, a sister company of the defunct Crane Bank, sued dfcu Bank and the Commissioner Land Registration challenging the transfer of the 48 leases by Bank of Uganda to dfcu Bank.
“dfcu Bank is also fully indemnified by Bank of Uganda under the P&A agreement,” a Lawyer says.
Importantly, dfcu remains strong and well-capitalized, meeting all the needs of its customers and fulfilling its purpose of transforming lives and businesses in Uganda.
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.