By our reporter

After taking over Crane Bank in 2016, Bank of Uganda has now moved to take over another commercial bank known as Bank of India (BOI).

The development follows a letter written to the Central Bank by BOI headquarters in India asking them to close the bank by March 31 due to restructuring, recapitalisation and in order to improve on return on assets in the bank.

“Due to restructuring and recapitalisation and improving on return on assets in Bank of India, we have decided that with effect from end of March 31, 2018to end business at Bank of India Uganda,” letter read in part.

Apparently the bank management has already agreed to give Bank of Uganda a liquidation plan to allow the central bank to do close monitoring to ensure that depositors are protected.

A meeting held at the Central bank premises on February 19 and chaired by deputy governor Louis Kasekende, also agreed that the bank liquidates itself by March 31 to allow Bank of Uganda take over formally to avoid distress.

Kasekende said the bank remains open to customers until March 31 when it will be declared liquidated and bank of Uganda takes over.

Meanwhile, Bank of India Uganda has been doing well financially and that it has a big number of clients across the country, “it is actually one of the fastest growing banks in Uganda,”