Bank of Baroda’s move for 2020

The lender will now focus on technology usage, human resource capabilities and credit earnings from agriculture, manufacturing sectors to drive growth Kampala, Uganda | JULIUS BUSINGE | Bank of Baroda Uganda Limited, a subsidiary of Bank of Baroda, India is focusing on investing in technology to offer efficient and timely services to customers but also to manage operational costs.

Kumar Meena, the bank’s managing director told shareholders during a virtual annual general meeting in Kampala on Sept.18 that the bank has embarked on putting in place cash recycler machines to replace ATMs to serve customers on a 24/7 basis with cash deposit facility as well as strengthening its risk management systems to prevent losses that might emerge out of its operations and compromise profitability.

He said the bank also plans to improve on its human resource capabilities by retooling/reskilling its human resource base in line with emerging industry issues, strengthen and expand operations for internet and mobile banking as well as enhance its customer service.

Meena revealed that the bank has been extending a significant portion of its credit facilities to two main sectors of the economy – manufacturing and agriculture.

For instance, last year, it extended 38% of its credit to manufacturing, up from 35% in 2018, and did extend 28% of its total credit to agriculture in 2019, higher than 25% in 2018.

In addition to the other sectors, Meena said they will extend more credit to these sectors depending on the need and risk assessments of clients.

The bank’s top officials are also pegging their growth prospects on government’s continued investment in high profile infrastructure projects and related sectors like oil and gas. It also sees mega opportunities in the inflow of foreign direct investments, continued growth in the service, education and health sectors.

Meena also said the bank will uphold high corporate governance principles to drive growth of the bank. The other key area of consideration is cutting operational costs by attracting affordable customer deposits and relying heavily on technology to deliver services.

“We will do all this using a diversified business model that balances the interests of shareholders, customers, employees and communities,” he said.

Meanwhile, a member of the board and top economist, Fred Muhumuza, who also lectures economics at Makerere University, said the bank did not pay any dividends to shareholders for the year 2019.

He said, this was in response to the Bank of Uganda’s directives to lenders under its arm not […]

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