UT Bank Customers Rush To Secure Assets After GCB Takeover

Following GCB Bank’s takeover of UT Bank, customers have scurried to branches of the bank in an attempt to secure their assets.

The Bank of Ghana confirmed the takeover of UT Bank and Capital Bank by GCB Bank in a statement on Monday morning, announcing that it had “approved a Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd”

Some customers of the former Savings and Loans institution told Citi News’ Gifty Tracy Aminu that they had rushed to the bank to confirm the news after it broke on radio.

Others had arrived at the Bank hoping to withdraw some funds only to find the building closed.

One customer, Ebenezer Adawada said: “[I’ve been a client of UT Bank] for about five years now. I was in a car, on my way to work when I heard the news that the GCB Bank had taken over UT Bank. When I came, the place was locked.”

When asked whether he would remain with the Bank following the takeover he added: “No problem, if only it will help us, my company opened an account here so I had to come and prepare my forms. My problem is that why should I now have to wait till 9:00 for my forms to be prepared?”

Another person said that he had gone to the Kantamanto Branch of the bank to withdraw some money and rushed to the branch at Adabraka when he saw that it was closed.

“I don’t understand it. I came to town early this morning to buy materials for my workers. When I got to the Kantamanto Branch, I was told they were not open. I got a motorbike to bring me to the Adabraka branch but found that it was the same story. There was no message from the bank, I have been told nothing. I got here but no one’s here,” he said.

“I’m frustrated and don’t know what’s happening. I have to send materials to my workers. I don’t get it. I don’t know [if I’ll continue with the Bank], I’ll have to think about it.”

Licenses revoked, off Stock Exchange

The Bank of Ghana revealed that it had also ‘revoked the Licences of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impairment of their capital’.

Citi Business News has gathered the remaining assets and liabilities of the two banks will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC).

According to the central bank the main offices and branches of UT Bank and Capital Bank will be under the control of GCB bank and will be opened at 1pm today for normal business transactions.

The Ghana Stock Exchange (GSE) has also suspended the listing status of UT Bank following its collapse and subsequent takeover by GCB.

The GSE noted that the suspension had become necessary due to the revocation of UT Bank’s licence by the BoG.

The GSE also indicated that UT Bank has failed to publish its financial results since the end of its financial year December 31, 2015.