The minister of State for Privatisation and Investment, Evelyn Anite, has revealed that government will inject more money into PostBank to meet the minimum capital requirement as required by the central bank.
The minister made the revelation as PostBank Uganda held its annual general meeting at the ministry of Finance, Planning and Economic Development offices.
She revealed that the government has resolved to increase PostBank’s authorised share capital by 400% from Shs100 billion to shs500 billion.
For customers, this means that access to low-priced financing would further be enabled while the Bank will benefit in terms of reduced cost of operations.
“The government in partnership with PostBank has put in place programmes that are intended at transforming the livelihoods of Ugandans. They include the Small Business Recovery Fund which is available at a 10% interest rate p.a with financing of up to Shs 200 million,” said Anite.
Haruna Kasolo, Minister of State for Microfinance said that Ugandans need to understand that PostBank is their bank.
“PostBank is 100% government owned, therefore it is your bank. I applaud the bank for and call upon it to continue offering affordable financing to micro, small and medium enterprises.”
In 2020, PostBank embarked on a transformation journey that saw the rigorous restructuring of the bank’s structure, enhancement of the bank’s digital banking channels like the PostApp, PostMobile, PostAgents and ATMs, reinforcement of human resources and strengthening of the bank’s risk framework.
This culminated in the bank’s acquisition of a Tier One operating licence making it a fully-fledged commercial bank.
Julius Kakeeto, the managing director, PostBank, emphasized that the bank is able to compete favourably on the market.
“We now trade in foreign currency, offer cheque books to our customers, and are in the clearinghouse among many other things,” he said.