Don't Miss

NDIC advises Aso Savings on Union Homes acquisition

By BusinessNews Staff on April 11, 2015

The Managing Director, Nigeria Deposit Insurance Corporation, Alhaji Umaru Ibrahim, has advised the management of Aso Savings and Loans Plc to ensure sound corporate governance in Union Homes Savings and Loans Plc.

Ibrahim made the remark when the management of Aso Savings and Loans Plc visited him at the NIDC headquarters in Abuja.

A statement issued on Thursday by the corporation explained that the acquisition of Union Homes by Aso Savings would not only give all depositors and members of staff of the UHSL a new lease of life, but also go a long way to promote public confidence in the banking system.

According to Ibrahim, the task before the management is to maintain the confidence reposed on it by the board, shareholders and the supervisory authorities by ensuring higher performance and quality service.

Ibrahim enjoined Aso Savings to embark on a process of effective communication of the turnaround plan for Union Homes with a view to promoting confidence and trust of the depositors.

He also advised the management of the mortgage bank to establish effective communication channels to reach out to existing and prospective customers in order to overcome potential risks of rumours, which could trigger a run on both Aso Savings and Union Homes.

Responding, the Managing Director, Aso Savings and Loans, Mr. Hassan Usman, commended the NDIC for its support in resolving the Union Homes problem.

He assured the NDIC of the full implementation of the recommendations of the supervisory authorities to ensure sound management of both institutions.

Usman informed the management team of the NDIC that from now, Aso Savings would control about 92 per cent of the shares of the UHSL, adding that the two institutions would be managed independently for six months before their final merger.

[Punch]

headline