DFCU Bank rejected calls from its top investors- Commonwealth Development Corporation (CDC) to drop an idea of acquiring Crane Bank.
These British investors have been the DFCU’s long-time shareholders until they issued a statement announcing they will be pulling out of business this month.
Media reports indicate that CDC group was against acquisition of Crane Bank having internalised the flaws and illegalities shrouding the sale of Sudhir Ruparelia’s financial institution.
In October 2016, Bank of Uganda took over the assets and liabilities of Crane Bank, and subsequently sold it off to DFCU in January 2017.
However, the Central Bank and DFCU have since been battling Crane Bank a couple of legal suits in Court with many stakeholders including former owners, depositors and shareholders of the defunct bank challenging its takeover.
Media Report further quote a top official at DFCU revealing how its investors had advised that the bank would still register profits even out acquiring Crane Bank.
Taking over the assets and liabilities of Crane Bank required DFCU to source more liquidity to service manpower in order to operate all the Crane Bank Branches.
Crane Bank had 68 branches across the country.
In fact, in the recent past, customers have been complaining of poor services in almost all outlets across the country.
The Bank’s system has most of the times been broken down, long queues and many others.
Against that backdrop, DFCU chairman Elly Karuhanga received a communication from CDC that their shares were up for sale.
Irina Grigorenko, CDC investment director had earlier notified that they 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.
