For long, the success of the Crane Bank was a topic of discussion, with some scholars writing case studies about the same. The local bank owned by Sudhir Ruparelia was threatening foreign banks including, Stanbic bank, Barclays and Standard Chartered Bank.
With few branches, the bank was always among the top four banks in Uganda. The bank was earning accolades from the Euro Money. However, all of the sudden things turned upside down two years. Since then, the bank has never been the same.
Early this week, there were media reports that Crane Bank was up for sale. However, if you have been following Newz Post, the sale of Crane Bank, may not be News to you
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Crane Bank has issued a statement in which management claims the institution is not being sold, but only opening diversifying, though an Initial Public Offer (IPO). The statement follows media reports that claim once one of the leading commercial banks is on sale.
According to the Bank’s board chairman Joseph Biribonwa, two years ago, the shareholders and board decided to get a strategic equity investor with the resources and management experience.
Also read: How a local bank lost millions through fraud
“This strategy is in sync with the inevitable trend of mergers and acquisitions, not just as an important forum of growth for the purposed of the EAC integration but as a strategic move at a global level,”
This equity investor according to Biribonwa, is hoped to strengthen the bank’s balance sheets and take it to the next level with enhanced products and services.
Crane Bank has had a rough time for the past few years following the unexplained disappearance of talisman A.R Kalan. Under Kalan, Crane Bank threatened Stanbic bank and ChartChart in terms of turnover and net profits.
Did Kalan runaway with the performance magic?
In 2014, rumour spread on social media with allegations that the bank had been robbed of money worth US$ 18m, with other sources putting the loss at Ugx. 60 billion. A claim which Mr. Biribonwa refuted, explaining that Kalan had gone on leave. Four years later, Kalan is yet to return.
Don’t miss Part two…coming soon
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