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UTFSL now UT Bank

By Elorm DESEWU

Last week, UT Financial Services (UTFSL) listed 91 million shares to acquire UT Bank, after it had received regulatory approvals from the Bank of Ghana (BoG), Securities and Exchange Commission (SEC) and the Ghana Stock Exchange (GSE), thus changing its name on the GSE to UT Bank Limited.

This means that all shares previously traded under UT Financial Services will now be traded under the new entity – UT Bank.

This was made possible after the shareholders of UT Financial Services passed a special resolution during its Annual General Meeting to acquire UT Bank and merged the operations of the two institutions and operate as a universal bank.

UT Holdings who are majority owners of UT Financial Services and UT Bank would own 70% stake in the merged entity.

According to the crowned Prince Kofi Amoabeng, this would pave the way for the bank to do a right issue to raise additional money to meet the central bank’s minimum capital requirement of GH¢60 million in 2012.

He said, although plans were underway to open new branches in areas like Takoradi, Kumasi and Tamale, “we have to strengthen what we have now.”

He said the bank will also enhance its technological base by introducing e-banking and SMS, among others.

UT Financial Services, which was recently voted the ‘Most Respected Company’ and its CEO voted the ‘Most Respected CEO’ by its peers, and also ranked fifth on the Ghana Club 100, started off as a finance house non-bank financial institution in 1997.

Over the past 13 years, the company carved a niche for itself as a fast and efficient provider of financial solutions delivering loans in less than 48 hours.

In 2008, the owners of UT Financial Services, through their holding company, UT Holdings, acquired majority shares in BPI Bank and took over its operations under a new management and the new name, UT Bank.

The merger of the two companies will immediately increase the branch network of the new entity’s 27 branches in seven regions in Ghana.

The merger of the two companies will position UT Bank as a lending bank and change the face of banking in Ghana through fast, efficient and respectful delivery of service, maintaining the core proposition of a loan in less than 48 hours.

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