Orient Bank Uganda has announced it will close 3 of its 17 branches in cities of Gulu, Mbarara and Mbale effective 30th April 2021.
According to Orient’s management, the decision to close the three branches is in line with the bank’s digital and optimization strategy aimed at enhancing service experience of their customers.
“This process has been done in a transparent manner and with the relevant approvals from the Central Bank,” read part of the bank’s statement.
What this means to customers with accounts in closed branches
The bank has confirmed it had notified all customers using the three branches about the changes further indicating that all customer accounts shall remain operational and that customers can continue accessing services at the bank’s 14 remaining branches and through their digital channels.
In financial year(FY) 2019, Orient Bank was among the loss making banks in Uganda recording losses of Shs 1.1 billion from profits of Shs 5.6 billion in FY’2018, while its book value stood at Shs 114.1 billion in FY’2019.
In December 2020, Kenyan financial services firm I&M Holdings Ltd, owners of I&M Bank, Kenya’s 8th largest bank by assets (US$2.52 as at Sep.2019) announced they had reached an agreement to pay $33.6 million to acquire a 90 percent stake in Uganda’s Orient Bank according to disclosures in a circular to shareholders.
This transaction is pending approval from the Bank of Uganda and the Central Bank of Kenya.