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Union Bank to recapitalise soon — MD

The Managing Director, Union Bank Plc, Mrs Funke Osibodu, says the bank will soon be recapitalised.Osibodu, who disclosed this to newsmen at a briefing on Wednesday in Lagos, did not say exactly when the bank would do so.

She, however, explained that the bank had planned to recapitalise to the tune of N350 billion before its recent crisis. Osibodu said that despite the fact that Union Bank was among the five banks with non performing loans, it still had the capacity to go back to being the big, strong and reliable bank.“We have learnt from our mistakes. We appreciate the enormity of the challenges before us and the expectations of stakeholders, particularly our customers and shareholders.

“We are determined to use the enormous resources of our bank, especially its goodwill, to return it to a stable and more dependable level,’’’’ Osibodu said.She said that Union Bank would harness its resources to address the findings of the examiners so that it could return to its enviable position in the banking industry.

The bank chief executive said that to achieve the objectives, the bank would focus on risk management and control, marketing and business development, as well as people management. Osibodu said that the bank’’s decision-making relating to credit risk operation would be strengthened through aggressive loan recovery.According to her, both internal machinery and other resources placed at the bank’’s disposal by the law enforcement agencies would be used to reposition the bank.She said the bank would also monitor and reduce its concentrated risks by ensuring that the loan portfolio was more evenly spread, with less impact on the bank by large ticket items.

On the operational side, Osibodu said that Union Bank would ensure the integrity of its accounting and financial reporting systems. She said that appropriate controls, including a system for monitoring risks, financial probity and compliance with the law would be adopted, while corporate governance structure would focus on enhancing transparency and accountability.Osibodu said that the organisational structure of the bank would change and reflect new expectations, while its business module and portfolio would be reinvigorated to tap opportunities in diversified spheres.

“Until recently, there was no separation between the operations and marketing function in our branches. The branches were bogged down by operational issues and consequently had little time for marketing and business development,” she added.


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