Kwahu Rural Bank raises share capital by 64 per cent

The Kwahu Rural Bank raised its share capital of GH�103,147 in 2007 to GH�169,377 last year, representing an increase of 64.2 per cent, which meets the new minimum capital of GH�150,000, prescribed by the Bank of Ghana for Rural and Community banks (RCB). The total assets of the bank also rose from GH�3.6 million in 2007 to GH�4.2 million in 2008, indicating a growth of 16.6 per cent and granted loans and over drafts totalling GH�1.87 million Ghana to customers as against GH�1.3 million during the period under review, representing an increase of 43.75 per cent. Mr Samuel Nkansah-Boadi made this known in an address read on his behalf at the 27th Annual General Meeting of the bank at Kwahu Pepease. He said the bank net worth went up from GH�755,312 in 2007 to GH�927,000 last year, marking a significant increase of 22.73 per cent. The bank made a profit of GH�201,103 last year as compared to GH�204, 239 in 2007, due to stiff competition coupled with the effect of the global economic recession. This signified a marginal decline of 1.5 per cent. The Board Chairman said total deposit of the bank also rose from GH�2.5 million the previous year to GH�2.8 million in 2008, showing an increase of 12 per cent. This he said was an indication of public confidence in the financial entity. Mr Nkansah-Boadi said the bank was able to disburse GH�179,557 loan to a number of beneficiaries of the government�s Special Fund for Poverty Reduction Programme. The loan spans the Special Farmers and Traders Assistance Loan, Women in Development Fund loan, Community Based Rural Development Project, Ministry of Women and Children Assistance Loan and the Micro Soft loan. Mr Nkansah-Boadi noted that the bank discharged its corporate social responsibility by assisting a number of institutions in the bank�s operational areas with financial assistance of GH�3,665.00. The beneficiaries include Ghana National Trust Fund, Ghana Education Service, Science Technical and Mathematics Clinics, District Farmers Day celebration, the Ghana Police Service and the Pepease Health Centre. He said the bank was sponsoring long serving and brilliant staff to pursue under graduate degree programmes in the universities to equip them with the requisite academic qualification and skills to enable them perform top management assignments. In an address read on his behalf, the Managing Director of the ARB Apex Bank, Mr Eric Osei-Bonsu said though there had been impressive performance of the operations of most rural and community banks, they still had a lot to do by way of organisational and operational restructuring. This includes migration from manual operations to Information and Communication Technology intervention. He said this would ensure effective deposit mobilisation and credit administration, cost control and reduction to enable the RCB to meet the challenges of the changing competitive and turbulent business environment. The Managing Director said the Central Bank in its bid to modernize the National Payment System and Banking Supervision, was rolling out products for the big commercial and rural banks, which include e-Zwich, E.FASS and Cheques Code line and Clearing/Automated Clearing House (CCC/ACH) to make the payment system safe, efficient and fast at the banks. He advised the RCB to form co-operative mergers as a solution to their survival in the changing competitive and turbulent landscape in the banking industry.