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Private sector lending likely to rise
The Bank of Uganda in its state of the economy report for December 2022, said in the quarter ended October 2022 growth in Shilling loans increased to 12.2 percent from 9.6 percent. PHOTO/ EDGAR R. BATTE
What you need to know:
- This is driven by increased economic activities last year compared to previous years in Uganda.
The resurgence in economic activities in the country has boosted commercial bank lending to the private sector in different sectors and there will be an increase in commercial lending this year, I&M bank Uganda Limited has said.
Commercial banks are essential for the general public and the economy at large because they create liquidity in the market and create capital besides providing their customers with essential services.
Bank of Uganda in its state of the economy report for December 2022, said in the quarter ended October 2022 growth in Shilling loans increased to 12.2 percent from 9.6 percent, while growth in forex loans declined to 6.3 percent down from 13.8 percent.
Overall, net extensions were largely driven by shilling denominated loans which outweighed the contraction in foreign currency denominated loans.
While meeting a handful of journalists and customers at its newly established branch at Kingdom Kampala on Wednesday, Mr Joseph Fetaa, the head of products and channels at I&M bank, said there were increased economic activities last year compared to past years and they are positioning themselves to expand bank services alongside other commercial banks in the market.
“We are lending to all sectors in the economy, and we are going to maintain this, I&M bank Uganda Limited is no longer a small bank, but a big regional bank and we have added more services beyond what we used to offer to our clients,” he said.
Mr Fataa said they are seeing stability in the economy with increased economic activities taking place in Uganda.
The I&M bank’s newly established branch will be officially launched next month.
Mr Fataa said the branch has three in one, which includes select suite for net worth clients (premium customers) and it is designed to help them manage their business and secure their wealth as well, the second is the corporate bank and the third is the digital pod, which offers variety of services among which is internet banking and other related digital services.
Although digitization in the bank services has rapidly grown, with the use of ATMs, Agent Banking, Internet banking among others being preferred to bank hall services, Mr Fataa said banking halls are still alive despite the digital evolution.
Banks must keep up
Although digitization in the bank services has rapidly grown, with the use of ATMs, Agent Banking, Internet banking among others being preferred to bank hall services, Mr Fataa said banking halls are still alive despite the digital evolution.
“The banking hall has lost ground but it is not going away anytime soon. Customers want that personal interface once in a while,” he said.
