{{Short description|Commercial bank in Uganda}} {{Infobox company | name = Crane Bank | logo = | image = Crane bank Uganda.jpg | image_alt = Jinja branch | image_caption = Jinja branch | type = Private | company_slogan = | foundation = 1995 | location = 38 Kampala Road, Kampala, Uganda | key_people = Joseph Biribonwa<br/>chairman<br/>P. K. Gupta<br/>acting chief executive officer | num_employees = 600+ (2015)<ref>{{cite web | accessdate=22 April 2016 | url=http://www.newvision.co.ug/new_vision/news/1408465/crane-bank | date=20 August 2015 | title=Crane Bank at 20 | newspaper=New Vision | location=Kampala | last=Vision Reporter}}</ref> | revenue = {{loss}}After tax: UGX:12.52 billion (2015)<ref name="Report"/> | assets = UGX:1.81 trillion (2015)<ref name="Report"/> | staff = | clients = | industry = Financial services | products = Loans, savings, checking, investments, debit cards, credit cards, mortgages | homepage = [http://www.cranebanklimited.com Homepage] }} thumb|Crane bank Gulu branch '''Crane Bank Limited''' was a commercial bank in Uganda licensed and supervised by the Bank of Uganda (BOU), the central bank and national banking regulator.<ref>{{cite web | location=Kampala | date=31 March 2016 | url=https://www.bou.or.ug/bou/bou-downloads/financial_institutions/2016/Information-for-Commercial-Banks-as-at-March-2016.pdf | title=Bank of Uganda: List of Licensed Commercial Banks As At March 2016 | publisher=Bank of Uganda | author=Bank of Uganda | accessdate=24 August 2016 | archive-url=https://web.archive.org/web/20161012015912/https://www.bou.or.ug/bou/bou-downloads/financial_institutions/2016/Information-for-Commercial-Banks-as-at-March-2016.pdf | archive-date=12 October 2016 | url-status=dead }}</ref> Crane Bank was acquired by DFCU Bank in January 2017 at a cost of Ush200 billion ($52.8 million) on grounds that it was undercapitalized as declared by the regulator Bank of Uganda.
Crane Bank Limited was closed by Bank of Uganda (BoU) on 20 October 2016, after it failed to comply with a capital call on 1 July 2016. On 11 February 2022 the Supreme Court dismissed Bank of Uganda’s appeal against Sudhir Ruparelia and Meera Investments, and ordered the central bank to directly pay costs at all Court levels.<ref>{{Cite web|date=2022-02-11|title=BoU to pay Sudhir, return Crane Bank|url=https://northernpress.news.blog/2022/02/11/bou-to-pay-sudhir-return-crane-bank/|access-date=2022-02-11|website=The Northern Press|language=en}}</ref>
==Overview== The bank was a large financial services provider in Uganda. As of 31 December 2015, Crane Bank's assets were UGX:1.81 trillion, with shareholders' equity of UGX:281.43 billion.<ref name="Report">{{cite web | accessdate=24 August 2016 | url=http://www.cranebanklimited.com/financial-reports | title=Crane Bank Annual Report 2015 | publisher=Crane Bank Limited | date=29 April 2016 | author=Crane Bank | format=PDF | location=Kampala | archive-url=https://web.archive.org/web/20160822100905/http://www.cranebanklimited.com/financial-reports | archive-date=22 August 2016 | url-status=dead }}</ref> In October 2015, it had more than 750,000 customers.<ref>{{cite web | accessdate=27 April 2016 | last=Waiswa | url=http://news.ugo.co.ug/crane-bank-we-have-grown-with-our-customers-in-last-twenty-years | title=Crane Bank: We Have Grown With Our Customers In Last Twenty Years | date=15 October 2015 | location=Kampala | publisher=News.ugo.co.ug | first=Baz }}{{Dead link|date=November 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
==History== Crane Bank started operations on 21 August 1995 "with a vision of being the largest privately owned Ugandan Bank."<ref name="Report"/>
In September 2012, Crane Bank acquired the assets and some of the liabilities of the National Bank of Commerce, a small, indigenous, financial services provider in Uganda that had lost its banking license.<ref>{{cite web | first=Julius | last=Businge | date=27 September 2012 | accessdate=5 August 2015 | publisher=The Independent (Uganda) | title=BoU revokes National Bank of Commerce license | url=http://www.independent.co.ug/news/news/6502-bou-revokes-national-bank-of-commerce-license-%20 | url-status=dead| archiveurl=https://web.archive.org/web/20160127062308/http://www.independent.co.ug/news/news/6502-bou-revokes-national-bank-of-commerce-license-%20 | archivedate=27 January 2016 }}</ref>
On 30 January 2014, Crane Bank established Crane Bank Rwanda Limited, a wholly owned subsidiary,<ref name="Report"/> with the first branch in Rwanda opening to customers on 30 June 2014.<ref>{{Cite web |url=http://www.investigator.co.ug/business/item/48-banking-how-crane-bank-beat-rivals-in-2014.html |title="Banking: How Crane Bank Beat Rivals in 2014", ''The Investigator'', reported by Robert Ndawula, 18 January 2015, accessed 5 August 2015 |access-date=5 August 2015 |archive-url=https://web.archive.org/web/20150924035713/http://www.investigator.co.ug/business/item/48-banking-how-crane-bank-beat-rivals-in-2014.html |archive-date=24 September 2015 |url-status=dead }}</ref>
==Ownership== On 27 January 2017, DFCU took over the bank, which had been under the statutory management of the BOU because the bank's liabilities exceeded its assets. The acquisition included all customer deposit accounts and loan accounts.<ref>{{Cite news | url=https://www.reuters.com/article/uganda-banks-idUSL5N1FH1NK | title=UPDATE 1-Uganda's Crane Bank assets, liabilities transferred to dfcu - central bank | date=27 January 2017 | newspaper=Reuters | access-date=27 January 2017}}</ref><ref>{{Cite news | url=http://www.newvision.co.ug/new_vision/news/1444953/dfcu-takes-crane-bank | title=Dfcu takes over Crane bank | newspaper=www.newvision.co.ug | access-date=27 January 2017}}</ref>
The bank was previously a member of the Ruparelia Group.<ref>{{cite web | publisher=Ruparelia Group | url=http://www.rupareliagroup.com | title=Ruparelia Group Holdings | accessdate=26 April 2014}}</ref>
In September 2013, Ugandan print media reported that the bank's stock would be listed on the Uganda Securities Exchange in 2014.<ref>{{cite web | url=http://www.observer.ug/index.php?option=com_content&view=article&id=27540:crane-bank-to-sell-shares&catid=38:business&Itemid=68 | title=Crane Bank to sell shares | date=17 September 2013 | first=Joseph | last=Olanyo | publisher=The Observer (Uganda) | accessdate=5 August 2015}}</ref> Those plans, however, were put on hold, with the bank explaining at the end of 2014 that it was focusing on its expansion plans first.<ref>{{cite web | last=Oketch | location=Kampala | url=http://www.monitor.co.ug/Business/Prosper/shares-USE-Prosper/-/688616/2625290/-/q6g5qj/-/index.html | title=They promised to sell shares, what happened? | accessdate=5 August 2015 | first=Martin Luther | date=17 February 2015 | newspaper=Daily Monitor}}</ref>
In September 2016, Ugandan print media indicated that the bank was actively searching for a strategic partner to acquire shares in the bank.<ref>{{cite web | url=http://www.monitor.co.ug/News/National/Sudhir-speaks-out-on-Crane-Bank-sale/688334-3387642-7yj58qz/index.html | title=Sudhir speaks out on Crane Bank sale | accessdate=20 September 2016 | date=20 September 2016 | last=Stephen Otage | first=and Martin Luther Oketch | location=Kampala | newspaper=Daily Monitor}}</ref> In October 2016, the potential strategic partner was identified as Bob Diamond of the Atlas Mara Limited. Negotiations were still ongoing as of 11 October 2016.<ref>{{cite web | location=Nairobi | first=Bernard | last=Busuulwa | date=11 October 2016 | url=https://www.theeastafrican.co.ke/business/Former-Barclays-CEO-Diamond-talks-to-acquire-Uganda-Crane-Bank/2560-3413084-item-0-b0s5ki/index.html | title=Ex-Barclays CEO in talks to acquire Uganda Crane Bank | accessdate=11 October 2016 | newspaper=The EastAfrican}}</ref> On 20 October 2016, the BOU took over the management of Crane Bank and started a sale process. The thirteen bidders included DFCU, Barclays Bank of Uganda, First National Bank of South Africa, Ricardo Santos Silva of Aethel Partners Limited of the United Kingdom, and General Equity, a New Zealand-based fund.<ref>{{cite news | newspaper=Daily Monitor via AllAfrica.com | access-date=15 March 2017 | url=http://allafrica.com/stories/201612200056.html | title=Uganda: Six Banks Bid to Buy Crane Bank | last=Muhumuza | first=Jonathan Adengo and Mark Keith | date=20 December 2016 | archive-url=https://web.archive.org/web/20170316113122/http://allafrica.com/stories/201612200056.html | archive-date=16 March 2017 | url-status=dead }}</ref>
On 20 October 2016, the BOU took over the management of Crane Bank, suspending its board and acting CEO. This seizure was related to the bank's under-capitalization.<ref>{{cite web | newspaper=The EastAfrican | url=https://www.theeastafrican.co.ke/business/Uganda-central-bank-takes-control-of-Crane-Bank/2560-3423876-108c3v0z/index.html | title=Uganda's central bank takes control of Crane Bank | accessdate=20 October 2016 | date=20 October 2016 | first=Bernsard | last=Busulwa | location=Kampala; Nairobi}}</ref> Edward Katimbo Mugwanya was appointed statutory manager and reported directly to the governor of BOU.<ref>{{cite web | url=http://www.monitor.co.ug/News/National/Bank-of-Uganda-takes-over-Crane-Bank/688334-3423824-h675pvz/index.html | date=20 October 2016 | last=Mark Keith Muhumuza | newspaper=Daily Monitor | location=Kampala | title=Bank of Uganda takes over Crane Bank}}</ref>
In January 2017, DFCU acquired Crane Bank. DFCU Bank had offered to recapitalise Crane Bank with US$21.6 million after take-over and Aethel Partners Limited offered UGX:1 for the bank's assets and liabilities and also committed to invest US$215 million in Crane Bank to clean the balance sheet. Whereas DFCU Bank offered to clear all of Crane Bank's verified debts, Aethel Partners insisted it would clear only part of the failed lender's debts because of the severe corporate governance and financial risks tied to the bank. These factors boosted DFCU's bid.<ref>{{cite web| url=https://www.theeastafrican.co.ke/business/How-DFCU-won-bid-acquire-Uganda-Crane-Bank-/2560-3801860-format-xhtml-lisgu8z/index.html | title=How DFCU beat other bidders in the race to acquire Uganda's Crane Bank | accessdate=13 May 2017 | date=6 February 2017 |newspaper=The East African| first=Bernard |last=Busuulwa |location=Nairobi }}</ref>
==Controversy== The "Report on the preliminary forensic review at Crane Bank" (December 2016), which was authored by PricewaterhouseCoopers and commissioned by the Bank of Uganda, recommended the prosecution of Crane Bank's board of directors, investors, and senior management for allegedly flaunting Uganda's banking laws and allegedly committing various financial crimes.<ref>{{cite web | location=Kampala | url=http://www.monitor.co.ug/News/National/12-more-face-charges-Crane-Bank-mess/688334-4039854-8srh1uz/index.html | title=12 more face charges over Crane Bank mess | date=31 July 2017 | accessdate=31 July 2017 | newspaper=Daily Monitor | author=Eriasa Mukiibi Sserunjogi}}</ref>
==See also== {{Portal|Banks}} * List of banks in Uganda * Banking in Uganda * Economy of Uganda
==References== {{reflist|30em}}
==External links== *[http://www.monitor.co.ug/News/National/-BoU-Sudhir-Crane-Bank-Kampala-Associated-Advocates/688334-4046338-tw8jcxz/index.html New details emerge on BoU, Sudhir broken deal]
{{Kampala District}}
Category:Banks of Uganda Category:Kampala District Category:Ugandan companies established in 1995 Category:2016 disestablishments in Uganda