The demand for credit from Uganda Development Bank continues to overwhelm the bank yet its capital portfolio is still minimal.
This has pushed the management of the bank to request for more capitalisation from government in the next financial year.
Patricia Ojangole disclosed this during the release of the bank’s 2018 financial results.
She said increased funding will enable UDB to meet the customer demands.
The financial results released by the bank indicates that government funding in the last three years has doubled from Shs 52 billion in 2017 to Shs100 billions in 2018.
As a result, the gross loans grew by 28 percent from Shs 242.66 billion in 2017 to Shs 309 billion in 2018.
According to the financial results, profit after tax grew by 14 percent from Shs 8.3 billion in 2017 to Shs 9.5 billion in 2018.
Ojangole said such a good performance is attributed to the macro and micro dynamics of the country and the globe at large.
She said the bank has created more than 54,000 jobs in the different sectors of the economy through its lending.
She said given their low interest rates of 10-15%, the demand for credit has surpassed the money they have in the bank.
“Of course this calls for more money from the government for the next financial year,” she said.
Many Ugandans are now shunning borrowing from commercial banks due to high interest rates.