United Bank Limited has surrendered the banking license of its subsidiary, UBL Tanzania, to the central bank of the country as part of a sale-purchase deal of asset liabilities with the Exim Bank of Tanzania.
According to the official notification issued to PSX, the bank has entered into the next phase of liquidation of its assets that will be transferred to the Exim Bank of Tanzania to complete the process.
In 2018, UBL planned to stabilize the operations of its fully-owned subsidiary in Tanzania by injecting $9.4 million. The bank invested over Rs. 500 million to meet the regulatory requirement of the subsidiary as prescribed by the central bank of Tanzania.
In 2019, UBL sold off its subsidiary to Exim Bank of Tanzania with the transaction of liabilities and assets.
The bank has now concluded its deal with Exim Bank of Tanzania after it received a go-ahead from the State Bank of Pakistan (SBP) and regulatory authorities in two countries.
The official notification said that the decision is a part of UBL’s strategy for global repositioning and realignment based on commercial considerations.
Exim Bank is a large banking institution in Tanzania, providing commercial banking services to individuals, small-to-medium-sized businesses (SMEs), and large corporate clients.
The bank’s operations span Dar es Salaam, Zanzibar, Tanga, Morogoro, Kilimanjaro, Arusha, Manyara, Mwanza, Shinyanga, Kigoma, Iringa, Mbeya and Mtwara regions in Tanzania and overseas subsidiaries in Anjouan, Moheli and Moroni Islands of the Union of Comoros, in the Republic of Djibouti and Uganda– an international presence unmatched by other Tanzanian banks.