Bank of Baroda marks 60 years of service in Uganda
Dec 18, 2013
In a country where it is easy for a new business to close before celebrating its first birthday, a decade is a remarkable achievement worth of every celebration, how about 60-years? Surviving past the first year and thriving thereafter is a phenomenal task in the banking sector.
By Joel Ogwang
In a country where it is easy for a new business to close before celebrating its first birthday, a decade is a remarkable achievement worth of every celebration, how about 60-years? Surviving past the first year and thriving thereafter is a phenomenal task in the banking sector.
This is because competition and client hunger for fast, affordable and world-class services is the acidtest that defines stay in business for any entrant joining established brands in the arena. But, if that business is built on a solid foundation, visionary leadership, strong work ethic and professionalism, then success is limitless, just as its longevity can be guaranteed from one generation to the other.
Bank of Baroda (U) Ltd has continued to endear itself into the hearts and minds of Ugandans of past, present and future generations, and growing in leaps and bounds. It is a one-stop centre for clients’ banking needs. “At the outset, I salute the vision of the leaders of the yesteryears, who decided to open a branch of the Bank in Uganda way back in 1953,” says S. S Mundra, the Global chairman and managing director.
He adds that this reveals the fore sighted acumen to know the potential of Africa. As they say, it is only the jeweler who knows the real worth of a pearl. No doubt Uganda is called the Pearl of Africa. Arriva l in Uganda Bank of Baroda (U) Ltd announced its arrival and started its operations in Uganda when it opened its first branch in Kampala on December 18th 1953. The parent bank - Bank of Baroda – India was established in 1908 and has, over the years, spread its reach not only along the length and breadth of India, but also crossed national boundaries.
Today, it is present in 24 countries across the world. The bank has an outreach of over 4,500 branches in India and over 100 branches and offices in overseas countries,” Mundra explains. He adds that Bank of Baroda has an enviable record of posting profits in every year since inception. Bank of Baroda – India is the number one Public Sector Bank in India. Bank of Baroda (U) was incorporated as a subsidiary of Bank of Baroda - India with 49% shareholding of Government of Uganda on November 1, 1969.
Subsequently, Bank of Baroda – India took over 49% shareholding of Government of Uganda on June 7, 1999 to comply with the privatisation programme in Uganda for which the Bank had signed agreement with the Government for divestment of 20 % shares to public. In 2002, about 20 % of the shares were divested to the general public in Uganda. To-date, Bank of Baroda (U) continues to be one of the most stable and consistently profitmaking bank, striding forward by expanding its reach to come closer to the people of Uganda. “That Baroda has been present
in the country uninterruptedly since 1953 in itself is a land mark achievement,” says Dr. Rama Makuza, the Bank of Baroda (U) chairman. “The Bank has been recognised in the regional and International arena for its various proactive customer-centric approaches and has been conferred by various awards and accolades,” he adds.
Economy favou rs banking The positive trend in the economic outlook of Uganda, with signs of improving domestic production, employment and demand for goods, has created an enabling environment for players in the banking sector to thrive. “Uganda has the youngest population. There is a growing middle income population, which is spearheading the demand curve,” Mundra says.
He adds that the monetary policy of the country is well directed and has led to control of inflation whereby it was brought down from the dizzy heights of 30 % to single digit of 8 %. The various pro-investment measures taken by the Government, especially in sectors like agriculture, manufacturing, infrastructure, service Industry, education and healthcare, are having a multiplier effect on the economy of the country.
All these and many more measures taken by the Government have made Uganda the number one investment destination. These are all indications of a progressive national economy, leading to stable growth and development as also overall improvement in the standards of living. “Gone are the days when Bank of Baroda (U) was for the rich Asians only,” says Makuza. “Today, the bank has become a household name and is a local bank of international standards serving the people of Uganda with concern, care and competence.”
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A view of Bank of Baroda (U) head offices in Kampala
Baroda a partner in Uganda’s growth
By Vision Reporter Since opening its doors to Ugandans in 1953, Bank of Baroda (U) has offered a widerange of banking services tailor-made for its clients through 60 uninterrupted years. The Bank could not have set foot into the country at a better time, especially after Ugandans had attained their independence from British rule in 1962 at a time the globalisation wind was slowly, but surely crippling into the country.
By staying afl oat even during a period of political and economic instabilities right from the 1960s through the 1970s until mid the 1980s, the Bank of Baroda has, indeed, stood with Ugandans in good and bad times, cementing its matrimony with the citizenry. In the aftermath of its arrival in Uganda, Bank of Baroda (U) was seen as a Bank for Rich Asians only owing, in part, to its parent, Bank of Baroda- India.
However, as time has gone by, Ugandans have embraced the bank as a key partner in business and national development. Today, the bank has successfully catered for various and varied fi nancial requirements of all communities across the country. This has been done through salary loans to the salaried class of employees the ever growing agriculture sector, the highly demanding Infrastructure sector and the very essential health and education sector.
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Inauguration of the bank’s 15th branch at Kololo, Kampala by thehands of H.E Mr S.N Ray, the Indian High Commissioner to Uganda. Extreme right is Ashok Kumar Garg, the former managing director, Bank of Baroda, Uganda
PIONEER BANK
Bank of Baroda is a pioneer in agriculture fi nancing and has an exposure of 19% of its total loan portfolio tied to the agriculture sector. The manufacturing sector has an exposure of 26% and 24% to the building/construction sector, among others. This means it contributes to the growth and progress of the nation. Bank of Baroda (U) believes in providing timely, hassle-free and cost-effective fi nancial support to all its clients.
PRODUCTS
For any client, a good bank is one that offers a variety of services at the cheapest of costs and in the shortest time possible. Bank of Baroda (U) has fi tted this bill, justifying its huge clientele. “Bank of Baroda (U) is one of the premier subsidiaries of the Parent Bank,” says S. S Mundra, the Global chairman and managing director. He explains that over a period of time, Bank of Baroda (U) Ltd has grown from strength to strength and is now spread across the country with 35 outlets consisting of 15 branches and 19 ATMs.
OTHER SERVICES
The bank provides an array of products and services ranging from savings bank account to current account, time deposits, loans and advances, Automated Teller Machine (ATM) facilities, foreign exchange (forex), treasury, trade fi nance, remittances, lockers, brokerage and investment advisory.
Besides this array of products, the bank also offers value-added services like collection of Uganda Revenue Authority (URA) taxes, water payment bills to National Water & Sewerage Corporation (NWSC) and National Social Security Fund (NSSF) contribution.
Others are Umeme power bills, Kampala Capital City Authority (KCCA) collections and school fees collections across all the branches. The bank’s net banking service, Baroda Connect, is robust in technological standards and safety with facility of free SMS alerts. Bank of Baroda (U) also provides services to enable the general public invest in Government securities (Treasury Bills and Bonds), being an authorised primary dealer by Bank of Uganda (BoU).
The bank was recognised as the Best Primary Dealer in Uganda for the month of March 2013. It enables opening of SCD account for investment in Government Treasury Bills / Bonds for customers / non customers and, in so doing, enabling the efforts of the Government in raising funds for critical government spending.
It also facilitates investment in the Capital Market through its wholly owned subsidiary; Baroda Capital Markets (U) Ltd, a duly authorised broker/dealer member approved by the Capital Markets Authority (CMA). As well, it facilitates opening of SCD account of the investors for purpose of investment / trading in Capital Market Securities, thus channeling funds towards productive investment opportunities.
The bank focuses on identifying, measuring, monitoring and managing the various risks. And, while the risks cannot be fully eliminated, the Bank endeavours to minimise the same to a large extent by ensuring that appropriate infrastructure, controls and systems are in place within the predetermined procedures and constraints
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