KAMPALA — Government has resolved to increase PostBank’s authorized share capital by 400% from UGX. 100Bn to UGX. 500Bn, the Minister of State for privatization and Investment Anite Evelyn has revealed.
Anite explained that Government will inject UGX. 50Bn, in the short term, to meet the emerging regulations on minimum capital requirements for banks and continue to lobby for the capitalization of PostBank’s earnings, which recently attained a Tier One status.
“The government in partnership with PostBank has put in place programs that are intended at transforming the livelihoods of Ugandans. They include the Small Business Recovery Fund which is available at a 10% interest rate p.a with financing of up to UGX. 200 million,” Anite remarked adding that, “Agriculture is the backbone of our country and in a bid to address the issue of food security we initiated the Agriculture Credit Facility (ACF) to help agribusinessmen access affordable credit.”
Haruna Kasolo, Minister of State for Microfinance, who was representing the Minister of Finance, said urged the bank to offer affordable financing to micro, small and medium enterprises.
In 2020, PostBank embarked on a transformation journey, that saw the rigorous restructuring of the bank’s organogram, enhancement of the bank’s digital banking channels like the PostApp, PostMobile, PostAgents and ATMs, reinforcement of human resources and strengthening of the bank’s risk framework.
This culminated in the Bank’s acquisition of a Tier One operating licence making it a fully-fledged commercial bank.
Andrew Otengo Owiny, the Board Chairman, PostBank Uganda, welcomed the recommendations from the shareholders and pledged to utilize them to grow PostBank into one of the leading financial institutions in the country.
Julius Kakeeto, the Managing Director, PostBank, reemphasized that, “Today, we are a fully-fledged commercial bank and are able to compete favorably on the market. We now trade in foreign currency, offer cheque books to our customers, and are in the clearinghouse among many other things.”
“We’ve also built our service delivery in terms of self-serve banking channels, a wide branch network of 52 branches, 60 smart ATMs that enable instant cash deposits and card-less withdrawals, and tailor-made products like the Agriculture Credit Facility (ACF) offered in partnership with BoU, asset financing, Kyappa loans for people seeking to acquire and own land and smallholder farmer financing and recently supporting the key suppliers to coffee exporters.”
Kakeeto concluded saying that, “I would like to resound our gratitude to our shareholder for increasing the authorized share capital to UGX. 500Bn. We shall continue to offer affordable and sustainable financial services that drive financial inclusion for the socio-economic development of our country.”
In the Integrated Report 2021 that was shared with the shareholders, the Bank recorded a net profit after tax of UGX. 12.2Bn, a 22% increase from 10 Bn recorded in 2020. Assets of the Bank grew to UGX. 745Bn while customers deposits and loans grew by 12.9% to UGX. 507Bn and by 36% to UGX. 454Bn respectively.