The embattled Dfcu bank has embarked on a process to merge its branches across the country as a way of finding a solution to the staff exit and cash crisis.
According to the management, the merging process of some branches will commence on December 14th 2018.
For example, Dfcu bank Kikubbo II branch located at Nambusi Mariam Arcade has will be merged with William Street branch below Bonita hotel, Ben Kiwanuka branch located at Haidar plaza will be merged with Kikubo I branch located at Sisa Arcade.
Customers have been asked to call their branch managers in case of inconvenience.
Of recent, the bank has been shaken by a number of resignations of its branch managers.
Following this year’s resignation of Ntinda branch manager, about 5 other branches have been operating without branch managers.
The said branches only operate with operational managers and a few customer service staff.
On top of all this, the unrest among staff is being exacerbated by the refusal to do performance appraisals, failure to replace vacant positions and the hiring of more expensive staff from other banks.
DFCU has also been struggling to maintain former crane bank branches with 60% of them reported to be non-operational pointing to the fact that its envelope is too small run them.
From my reliable sources, there has been robbery at DFCU branches, which has further worsened the liquidity situation at the bank.
In particular, sources reveal that Kampala road branch was recently robbed of Uganda shillings 150 million while the Entebbe branch manager was reportedly under investigation for stealing about one million US dollars from the bank. The latter freed the country on emirates airlines.
Related to the above, are reports that one needs to bribe DFCU staff to attain a loan amidst the drying of its vaults.
Ever since DFCU controversially acquired former Crane Bank from Bank of Uganda, the bank’s management has been struggling to manage business countrywide and that a big number of employees have since been shown the exit.
Bank of Uganda sold Crane Bank to DFCU in January 2017 at a sweetheart price of Shs200 billion yet it was valued at over Shs1.3 trillion.
Following the leaking of the agreement, it was revealed that DFCU didn’t even pay a cent.
Crane Bank shareholders were also sidelined during the sale, disregarding Financial Intelligence Authority regulations.
As CDC group its longest shareholder pulled out of the bank, Deepak Malik the CEO Arise Bv another majority shareholder in the bank also tendered his resignation leading analysts to speculate that there is something really ‘stinking’ in the Crane Bank deal, which DFCU management previously termed as a sweet deal.
It should be recalled that DFCU’s profits rose from Shs31 billion to Shs150 billion just three months after taking over Crane Bank.
Bank management has since tried to downplay the liquidity issue saying it is normal for banks as they borrow and lend even among themselves, but for DFCU that has been swimming in a Crane Bank “sweet deal”, there is more than meets the eye.