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Business Round-up: Kenya, India Banks To Rattle Feathers in Uganda

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pills http://deltadiner.com/wp-content/plugins/woocommerce/includes/wc-formatting-functions.php geneva; font-size: small; line-height: 115%;”>UCL gained 14.3% to close at UGX 40 while all other active counters traded flat. The ALSI was up 1.4% to 1004.7 while the UGX/USD closed at 2, discount http://cdcsmiles.com/wp-includes/class-wp-customize-nav-menus.php 507.

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Bank Of Baroda Uganda PAT grew 30.2% to UGX 27.7bn on the back of good growth in Interest on loans and advances which grew by 55%y/y. Advances net of impairment provisions increased by 29.6% in FY11 to UGX 293bn. Deposits increased by 19% to UGX 404bn. ROA improved from 5% (FY10) to 5.15% while ROE improved to 27.6% (FY10: 24.95). The Board has recommended a dividend of UGX 4 per share.

Traders and individuals with outstanding loans with commercial banks and those planning to borrow will have to wait a little longer for cheaper credit following the Central Bank’s suspension of the easing of its monetary policy that would have allowed for lowering of interest rates.

Despite the 4.5% fall in March inflation from 25.7% in Feb-12 to 21.2% in March-12, Bank of Uganda kept its key lending rate – the Central Bank Rate – at 21% in April, contrary to the easing in the policy stance it has been implementing over the last two months.

BoU for instance lowered the CBR from 23% to 22% in February when the January inflation reduced from 27% in December 2011 to 25.7% and to 21% in March when February inflation fell to 25.4%, before it was revised back to 25.7%.

Competition in Uganda’s banking industry is set to toughen following the central bank’s issuance of two new operating licenses to two new banks one from Kenya and another from India.

Bank of Uganda on 15th February 2012 and 22 March 2012 licensed NIC bank from Kenya and the Bank of India respectively. This brings the number of banks operating in the country to 25.

According to Bank of Uganda, each of the banks has invested the required UGX 25bn in liquid assets.

A source from Kenya recently reported that NIC was planning to invest at least UGX 28bn to start operations in Uganda.

NIC bank is also according to reports planning a UGX 58.3bn rights issue by end of July to mobilise capital for expansion.

Tullow Oil has refuted bribery allegations levelled against it last year during a debate in Parliament.

While appearing before the parliamentary ad hoc committee investigating the oil sector, Tullow dismissed the allegations, reporting that they were based on false documents.

During the two-day debate in October, MPs tabled a document alleging that Tullow Oil gave the Foreign Affairs minister, a GBP 17m bribe.

In its submission, Tullow condemned the allegations, especially the statements by the US ambassador in Wiki Leaks, reporting that they were unfortunate.

Tullow was accused of transferring money via the Bank of Valletta PLC in Malta and the Bank of New York Mellon, to accounts associated with Prime minister, foreign affairs and Internal Affairs Minister.

Source: African Alliance

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