Crisis@ DFCU? Days after its biggest investor quit, Now Deepak Malik, ARISE B.V CEO resigns from DFCU Board

DAILYNEWS UG |By Okot Johnson| Kampala

DFCU Bank is owned by nine institutional investors with Arise B.V South Africa holding the largest shareholding at 59% per cent.

Mr. Deepak Malik serves as the Chief Executive at Arise B.V SA and has been sitting on the Board of DFCU but it has been reported that he has now resigned from the Board.

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Above: Mr. Deepak Malik CEO Arise B.V & DFCU Bank Board member

Norwegian development finance institution Norfund, Dutch development bank FMO and banking co-operative Rabobank pooled their financial assets to create Arise, a Dutch domiciled but Cape Town-based investment firm focused on the financial services sector in sub-Saharan Africa. Arise has some clout with combined assets of $637 million, and the intention of growing this to $1 billion within five years.

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A few days ago, it was announced that DFCU Bank is set to lose its major and oldest investor, CDC which is Britain’s oldest Development Finance Institution that joined hands with the Government of Uganda in 1964 to set up DFCU.

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Above: The letter

DFCU has in recent months been embroiled in running battles with former Crane Bank shareholders over Crane Bank vast properties. DFCU acquired Crane Bank from Bank of Uganda, a transaction that has sparked a heated legal battle in Ugandans courts of law.

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Above: The vast Clientele of former Crane Bank participating in the Banks local activation 

It remains unclear how Mr. Maliks departure will play-out and affect the bank but one thing for sure is that with CDC gone and now Mr. Deepak Malik gone, these are dicey, risky and unpredictable times for DFCU.

Mr. Malik joined Norfund as an Investment Director in 2003 where his efforts were spent in promoting Norwegian investments in Southern Africa and the region. Mr. Malik was previously the Regional Director of South Africa at Norfund. Mr. Malik holds a Bachelor of Arts in Economics from Delhi University, a Master of Arts in Economics from the Delhi School of Economics and a Master of Business Administration from Cornell University.

Current Shareholding of DFCU Bank 

SHAREHOLDER NAME SHAREHOLDING
ARISE B.V. 58.71%
SCB MAURITIUS A/C CDC GROUP PLC 9.97%
NATIONAL SOCIAL SECURITY FUND 7.69%
KIMBERLITE FRONTIER AFRICA NASTER FUND, L.P.-RCKM 6.15%
UAP INSURANCE CO. LIMITED 2.08%
NATIONAL SOCIAL SECURITY FUND-PINEBRIDGE 1.14%
SSB-CONRAD N HILTON FOUNDATION – 00FG 0.98%
VANDERBILT UNIVERSITY 0.87%
BANQUE PICTET AND CIE SA A/C BLANKENEY L.P 0.63%
BANK OF UGANDA STAFF RETIREMENT BENEFIT SCH-SIM 0.59%
OTHERS 11.20%
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