Bank of Uganda is yet to approve sale of Crane Bank owned by city tycoon Sudhir Ruparelia.
Sudhir says he found a strategic partner to buy unspecified shares in Crane bank and that the discussions are underway.
Defending his decision to sell off some of the bank’s shares, Ruparelia said what he was doing was a normal transaction which should not cause any public anxiety or outcry.
However, Bank of Uganda says it’s yet to approve his decision.
A statement issued by Bank of Uganda director communications Christine B Alupo said: “We have received several enquiries about Crane Bank (U) Limited which is one of the 25 banks licensed and supervised by Bank of Uganda. In line with the financial Institutions Act 2004 as amended in 2016, if commercial bank wishes to dispose off equity worth 5% or more of its shares, the sale must be approved by Bank of Uganda.”
According to Alupo, BoU has not yet received any request from Crane Bank to approve a change in shareholding.
“Should such a request be received, the proposed shareholders will be vetted for fit and proper credentials and positively considered if they warrant approval,” added Alupo.
Crane Bank is an indigenous bank owned by Ruparelia, a businessman with interests in real estate, hospitality and service sectors.
It started as a Forex Bureau before transforming 25 years ago into a fully-fledged commercial bank whose profitability, before losses registered last year, drove an ambitious expansion plan with opening of new branches across the country.