Elly Karuhanga, the chairman DFCU Bank Group has confirmed the pullout of major shareholder Commonwealth Development Cooperation Group (CDC) Group.
Following it’s otherwise questionable take over of Crane Bank, DFCU has enjoyed tremendous growth and Karuhanga says the bank will not hurt by the pullout of the British firm.
“The bank is strong and trading her shares well,” he said while appearing on a radio show.
CDC which holds a 10% stake in DFCU bank reportedly wrote to Karuhanga about their pullout but are yet to publicly declare when and why.
Karuhanga however denied information that the shareholder’s pullout is linked to Crane Bank’s acquisition which he said was a process facilitated by the Central Bank.
“We are not the ones that looked for Crane Bank. We bought it through Bank of Uganda which should answer any questions.”
Analysts contend that CDC’s pullout will affect’s DFCU’s current financial situation as the bank struggles with a several lawsuits and turbulent financial market.