Matooke Republic
Sunday, July 13, 2025
  • Home
  • News
  • Entertainment
  • Gossip
  • Features
  • Business
  • Sports
  • Health
  • Photos
  • Relationships
Matooke Republic
  • Home
  • News
  • Entertainment
  • Gossip
  • Features
  • Business
  • Sports
  • Health
  • Photos
  • Relationships
No Result
View All Result
Matooke Republic
No Result
View All Result

DFCU admits it is in liquidity crisis

Matooke Republic by Matooke Republic
July 9, 2018
in Business
Reading Time: 3 mins read
Share on FacebookShare on Twitter

DFCU bank is in a liquidity crisis, the bank chairman Elly Karuhanga has confirmed.
The bank reportedly has no cash necessary for lending and paying its customers. It is further indicated clients applying for loans are getting less than what they have applied for.

This was disclosed by Elly Karuhanga the bank chairman and George Ochom the DFCU Ltd general manager while addressing a crisis media briefing at Kampala Associated Advocates offices in Nakasero, Kampala.

RELATED POSTS

Jacob Kiplimo shines at Samsung Galaxy Unpacked as new Galaxy Watch 8 launches

Pearl Tower One: Meera Investments unveils Kampala’s landmark Grade-A office building

Ochom explained that liquidity is critical in the bank market and said banks can’t operate normal business without enough
liquidity.
 
“Liquidity is very critical in any bank. Really it is critical in the interbank market because you know there are always payments that go on on a daily basis so in normal course of banking business there is a lot of movements of funds,” said Ochom.

He further revealed that banks have to maintain certain liquidity ratios in order to be able to pay out their customers.

The bank officials’ remarks follow the exit of CDC, one of DFCU’s major shareholders.

“We don’t know whether CDC group is running away completely or selling part of its shares so we don’t really know what is going on. They have not made it officially to us. If they make it clear to us we shall inform you,” Karuhanga said.

Elly Karuhanga

He also said CDC reducing shareholding is normal but may affect the bank operations.

Reports also show that ever since DFCU controversially acquired former Crane Bank from Bank of Uganda, the bank’s management has been struggling to manage business countrywide and that a big number of employees have since been shown the exit.

CDC made an official communication to DFCU indicating the intention to sell its stake on June 14.

The company’s Investment Director in charge of Financial Institutions, Irina Grigorenko, said it was “undertaking a review of its investment in DFCU Limited which may lead to the disposal or some of some or all of its shares in DFCU over the short to medium term.”

“It is our aspiration to exit in a manner that causes minimum disruption to the business and ensures the orderly trading of DFCU’s shares,” she wrote.

Irina also indicated that CDC’s objective is to identify “like-minded investors who could support DFCU in its new phase of growth.”
DFCU’s crisis was further deepened by the resignation of Deepak Malik the Chief Executive Officer of Arise Holdings Ltd, which is its biggest shareholder from the board.

Arise Holdings has 58 percent shares while CDC is DFCU’s oldest investor with more than five decades of working together.

Storm after Crane Bank takeover
Bank of Uganda sold Crane Bank to DFCU in January 2017 for a paltry Shs200 billion yet it was valued at over Shs1.3 trillion.

Following the leaking of the agreement, it was revealed that DFCU didn’t even pay a cent.

Crane Bank shareholders were also sidelined during the sale, disregarding Financial Intelligence Authority regulations.

As CDC pulled out of the bank, Malik also tendered his resignation leading analysts to speculate that there is something really ‘stinking’ in the Crane Bank deal, which DFCU management previously termed as a sweet deal.

It should be recalled that DFCU’s profits rose from Shs31 billion to Shs150 billion just three months after taking over Crane Bank.

Karuhanga tried to downplay the liquidity issue saying it is normal for banks as they borrow and lend even among themselves, but for DFCU that has been swimming in a Crane Bank “sweet deal”, there is more than meets the eye.

Related

Tags: DFCU
Share2Tweet1Send
Matooke Republic

Matooke Republic

Freshly peeled info from area code 256

Related Posts

UK Supreme Court orders that DFCU, its owners and directors must stand trial in UK for their role in fraudulent acquisition of Crane Bank

by Matooke Republic
2 years ago

...

15 Dfcu staff throw in towel in just one month

by Matooke Republic
2 years ago

...

Lands Registry cancels titles of 48 former Crane Bank branches held by Dfcu, returns them to Sudhir

by Matooke Republic
2 years ago

...

Crane Bank shareholders welcome London Court ruling to hear multi million dollar case against DFCU, vow to fight for justice

by Matooke Republic
2 years ago

...

Sudhir wins London Court of Appeal case to prosecute DFCU Bank over corruption involving BoU officials in $211m Crane Bank Takeover Case

by Matooke Republic
2 years ago

...

Next Post

Abiriga's killers should be arrested first, not mere talkers like Betty Nambooze - Katikkiro Mayiga

Man power, manhood enlargement herbs laced with dangerous chemical that causes bleeding in brain --- NDA warns

RECOMMENDED

Kabaka’s Lake to be redeveloped into an international urban tourism site

July 12, 2025
A vibrant breakout session during the Billi Now Now Youth Summit 2025, where young changemakers engaged in powerful discussions on leadership innovation and youth empowerment.

RAHU holds third BNN Summit, rallies young people to harness their voices toinfluence a better future

July 12, 2025
  • 643 Followers
  • 23.9k Followers

MOST VIEWED

  • Here is how to use NIRA’s new online portal to register or renew your national ID

    3931 shares
    Share 1572 Tweet 983
  • DNA test confirms late MP Ssegirinya was father to only 4 of 9 children presented after his death

    98 shares
    Share 39 Tweet 25
  • Kampala University proprietor Prof Kateregga’s wife rejects DNA results indicating one of three children is not his, demands fresh test in the United States

    94 shares
    Share 38 Tweet 24
  • Properties owned by late billionaire Aponye at risk of auction over Shs15 billion loan arrears

    78 shares
    Share 31 Tweet 20
  • Pastor Bugingo’s daughter Doreen Gift awarded scholarship to Arizona State University in the US

    61 shares
    Share 24 Tweet 15
Matooke Republic

Uganda's only free Newspaper. Out every Thursday. Freshly peeled info. kiwatule, Kampala, Uganda.

  • Home
  • News
  • Entertainment
  • Gossip
  • Features
  • Business
  • Sports
  • Health
  • Photos

© Matooke Republic 2024

© Matooke Republic 2024

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.