Business News of 2014-01-13

Bomaa Area Rural Bank on recovery path

The Bomaa Area Rural Bank, recorded a profit after tax of GH¢12,678 as at December 31, 2012, as against a loss of 69,817 in December 31, 2011.
Total savings grew from GH¢627,101 as at 2011 to GH¢1,044,009 in December 2012, representing a 39 per cent increase; while the bank’s operating capital rose from GH¢67,762 in 2011 to GH¢91,132 in 2012, posting an increase of 74 per cent.
Mr Ortis Nyame Darko, Chairman of the Board of Directors of the Bomaa Area Rural Bank was briefing the Ghana News Agency on the achievements of the new board which took office barely two years ago.
He said apart from the acquisition of a brand new bullion van, the bank has also joined a computer ring of rural banks in the country; and has been able to mobilise enough funds to grant loans and over-draft to customers such as salaried workers, traders, transport owners and farmers, as well as funeral loans to prospective applicants.
The Board Chairman said the bank’s positive signs of recovery to growth, moved the facility up from “Unsatisfactory to Marginal” on the ratings of the Efficiency Monitoring Unit of ARB APEX Bank Limited, the controlling body of rural and community banks.
The bank also resumed its social responsibility with educational support to Modesty Foundation, Katakyie Internet Café and Abesim Traditional Council Education Fund set up by the Abesim Chief.
On the way forward, Mr Nyame Darko said there is an urgent need for customers to buy more shares to improve the capital base of the bank and also meet the threshold of the GH¢300,000 set by the Bank of Ghana to all rural banks.
He said in view of this, the bank resolved at its last annual general meeting held at Bomaa to levy each of the 7,000 houses at Bomaa GH¢50.00 to raise funds to augment the bank’s share capital; while a durbar would be held in Easter to raise additional funds to support the recovery drive of the commercial entity.
The Board Chairman also hinted that the bank would make personal contacts with wealthy citizens of Bomaa living in and outside the country to come to its aid by buying more shares and investing in other areas of operations.
He said the bank would intensify its loans recovery efforts to keep it in serious business.
He commended Messrs Peter Yeboah, Ernest Kusi-Duah, James Afriyie Boakye, Kumi Samuel, Nicholas Lenin Anane-Agyei and Enoch Richard Arkaifie – all members of the board for their support and cooperation in bringing a new lease of life to the bank.
Mr Nyame Darko urged stakeholders to rally behind the board and management to sustain the bank for posterity.
“The profit made for the first time over several years in 2012, shows that there are no such things as unrealistic goals, only unrealistic time frame. With determination and zeal, we hope to make it,” he said.
Source: GNA
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