Connect with us

News

Stanbic Named Amongst Banks with Lowest Lending Rates

Published

on


Stanbic Bank Uganda has been named among commercial banks that have maintained the lending rates below industry average in the first six months of the year according to the Bank of Uganda’s monetary report for August 2020.

Stanbic Bank, Absa bank, Baroda, Bank of India, Citibank, Ecobank, NC Bank Standard Chartered Bank, United Bank of Africa, and Exim Bank are listed as having charged borrowers lowest rates between January and June 2020, effectively making them the cheapest lenders for borrowers to run to.

According to BoU, the industry average lending rates in June 2020 was 17.2% having dropped from 20.06% in January same year. Stanbic bank’s prime lending rate stood at 16% as of august 1st having reduced it from 16.5% that it charged in May 2020. Citi Bank had the lowest charges at 15% although it does not offer loans to individual customers.

Accordingly, Banks with the lowest Bank rates had the best performing loans. In the annual performance review, StanbiC Banks Customer Loan grow by 14% from Shs 2.5 trillion in 2018 to Shs 2.9 trillion in 2019. The bank also grew its deposits by 21% from 3.9 trillion in 2018 to 4.7 trillion in 2019.

“As more customers trusted us with their money and our loans and advances grew by 14% by availing Ush 344 billion of new credit to key sectors of the economy such as manufacturing, agriculture and personal lending where we provided more than 40% of new lending. Our revenues grew 20% year-on-year to exceed Ushs 800 billion and were well diversified between lending and non-lending revenue. As a result, our profit after tax grew 20% to a record Ushs 259 billion over Ushs 215 billion posted in 2018, noted Patrick Mweheire, the former MD of Stanbic Bank while commenting about last year’s performance.

Mweheire further explained that the Bank was able to offer more value to its customers because of the technological innovations that it has put in place that has cut the bank’s operational costs while improving its effectiveness in service delivery.

“Due to our obsession with the client, we are consistently innovating to enhance their experience. In 2019, we delivered on several customer initiatives such as online account opening, mobile lending, enhanced agent banking; cash deposit machines which remain available 24/7. We also massively invested in technology by further enhancing our core banking system and several other peripheral systems such as internet banking and business on-line banking. As a result, over 85% of all the bank’s transactions are now executed digitally – branches are less than 15% from 40% less than 3 years ago. All of this digitization has allowed us to put banking back into the hands of the customer wherever and whenever they want. With an excess of 1,700 active agents across the country, agent banking has demystified the brick and mortar preposition and created a win-win for the banks and clients,” he noted.



Source – chimpreports.com

News

Another blow as Judge throws out Kiggundu’s lawyer Muwema

Published

on

When court sat on Friday to hear the Kiggundu’s application to stop independent audit, he did not have a written application, and Justice Henry Adonyo instead ordered the plaintiff’s lawyer Fred Muwema to go make a written application seeking court to dismiss the audit and return to court on September 30 for a hearing of the application. But this adds more pressure on Kiggundu who is choking with the loans.

On 31 August, the judge ordered the Institute of Certified Public Accountants of Uganda (ICPAU) to carry out and independent audit into the accounts of the businessman and financial statements exchanged between the two parties, and present a report to court.

When asked by journalists why he has filed for an application seeking dismissal of the audit, Fred Muwema had this to say. “We are saying that let the validity and legality of those credit facilities (loans) be decided first before you can audit” He said.

The ruling on the application of the main suit to determine whether the businessman owes loan arrears to the bank is set for 5th October 2020, after which a date for hearing of the case will be set.

Background

Hamis Kiggundu through his companies Ham enterprises and Kiggs International (U) ltd sued DTB branches in Kenya and Uganda for deducting money from his accounts something which the bank contends and said they only acted as per the loan agreement of deducting 30% from Kiggundu’s accounts to recover the credit facilities rendered to him between February 2011 and September 2016

But Court documents filed by the bank in their defense shows that Kiggundu, between February 2011 and September 2016, was granted various credit facilities by the said DTB Banks.

First, via Ham Enterprises Limited, Kiggundu obtained a loan of $6,663,453 and another Sh2.5bn from the DTB (U) to finance his projects in the real estate business.

Later, according to New Vision, he got a facility worth $4.5m through Kiggs International (U) Limited from DTB (K) and mortgaged his properties, which include Plot 328 located at Kawuku on Block 248 Kyadondo, three plots that include 36, 37 and 38 on Folio 1533 Victoria Crescent II situated in Kyadondo and land on Makerere Hill Road on LRV 3716 Folio 10 Plot 923 Block 9.

Documents show that as of January 21, 2020, Kiggundu was in default on payment obligations of $6.298m on the loan facility of $6.663m, as well as sh2.885b on the demand overdraft facility of sh1.5b and the temporary demand overdraft facility of sh1b.

The banks say that Kiggundu was in default on the payment of another $3.662m out of a total loan facility of $4m and another $458,604 on a loan facility of $500,000, as of January 21, 2020.

The DTB consequently served him with a demand notice to either pay up or lose the assets that he submitted as collateral security. The bank threatened to attach a plot on Makerere Hill Road and other prime commercial properties.

Analysts says that Kiggundu’s lawyer is playing delaying tactics aimed at stopping the independent audit as ordered by the court earlier. Kiggundu had wanted court to believe his own audit of loan transactions, but that would amount to injustice to the banks that gave him money-DTB Uganda and DTB Kenya.

Continue Reading

News

Minister Rukutana charged with attempted murder, remanded

Published

on

By


The state minister for Labour, Gender and Economic Development Mwesigwa Rukutana has been remanded to Kyamugorani prison in Mbarara district.

Rukutana appeared before Ntungamo Grade One magistrate Nazifah Namayanja this afternoon from where he was charged with seven offences related to attempted murder, assault, malicious damage, and threatening violence.

Rukutana was captured in a video that went viral on social media showing him grabbing a gun from one of his bodyguards and started shooting at a vehicle belonging to supporters of his political rival Naome Kabasharira. At the time of the incident, Rukutana had just lost the Rushenyi country NRM flag to Kabasharira.

The prosecution alleges that on September 5, 2020, at Kagugu village in Ntungamo district, Rukutana and others still at large assaulted Julius Niwamanya and threatened to kill or injure him together with three others. The others are Stuart Kamukama, Dan Rwibirungi, and Moses Kamukama. 

It is also alleged that Rukutana also willfully and unlawfully damaged a motor vehicle registration number UAR 840X Toyota Rav 4 type which belongs to Moses Muhumuza.

According to the Judiciary public relations officer, Jameson Karemani, Rukutana has not taken a plea of these charges against him since they can only be tried by the chief magistrate who was not in court today.

As a result, the magistrate decided to send him to Kyamugorani, awaiting his return to court on Tuesday.      





Source – observer.ug

Continue Reading

News

Lira district headquarters closed over COVID-19

Published

on

By


Lira district headquarters have been closed after one staff tested positive for COVID-19 last week. 

On Monday morning, district staff were blocked at the gate with only the deputy chief administrative officer, his secretary and the receptionist allowed access to their offices. 

Paul Samuel Mbiiwa, the deputy chief administrative officer says that only heads of department will be allowed at the headquarters while the rest will work from home. He adds that the restriction will help to curb the spread of the virus.

“You see corona is not a joke. We have taken a step at fighting it and that is why you are seeing the staff outside. Even in my office here I do not want people to come if there is anything we can discuss on the phone.”

Francis Okello Olwa, a senior community development officer who doubles as the district spokesperson says that the entire district offices will be fumigated and closed for two days.

Health authorities in the district are planning to take samples from all the staff because they could have interacted with the one who tested positive. Currently, there are 19 COVID-19 patients under treatment at Lira regional referral hospital.     

On Sunday four health workers at the hospital tested positive for COVID-19. Dr Patrick Odongo, a senior medical officer at the hospital also succumbed to the virus.  





Source – observer.ug

Continue Reading

Trending