Bank PHB, which has won several awards as Nigeria's most innovative Bank, is set to bring its experience and dynamism to bear in the Ugandan market. This is a strategic move that will see Orient Bank deepen its market share and ability to meet the increasing needs of its growing number of customers.
We are glad to advise that we are now live on the BANKOM Network and Orient Bank Card holders can now use the ATMs/Smart Points of Banks on the BANKOM Network. This facility allows you to Withdrawal Cash and get a Balance inquiry.
Secondly, our customers can also use the VISA facility at any Bank that has Visa to access their money.
Orient Bank has Personal Loans, Salary Loans, Business Loans and School Fees Loan facilities with attractive and competitive interests. All our loan facilities are tailor made to suit our customers and with a capable and efficient credit department to serve our customers diligently.
Currently Orient Bank has partnered with only Kampala International University to ease the demands of timely payment faced by parents to meet their obligations. All information is available at the University premises. Once successful this facility will be extended to other Higher Institutions of Learning.
There has been a lot of discussion going on the high interest rates. The concept rate is not easy as it seems because it is influenced by external market forces. Its wrong to say that commercial bank charge higher interest rates because it all depends on demand and supply of liquidity in the market. If supply is there in form of cheap deposits than obviously lending rates will be low. But on the contrary, deposit rates are higher than lending rates have to be higher.
Let me give you an example Government Treasury bills are the best way to find the indicative market rates. In the last auction, 364 days yield was 12.3%.
Now, in order to attract depositors, we have to give a little higher than that, like 13% to 14%. So, if we give 13% on deposit and after adding our operational and administrative cost the resultant lending rate would come between 18% to 20%. At the moment, our Prime lending rate is at 19%.
I will give you another example. Apex funding used for development projects also uses market indicative rates to determine their base lending rates of last three months. So higher the T Bills rates higher the lending rates and vice versa.