Business News of 2014-03-28

CAL bank considers merger to boost growth

CAL bank says it is still looking forward to merging with or acquiring another institution as part of its growth strategy.
This was after earlier attempts to merge with another local bank failed to materialize in 2012. Speaking to Joy Business after engaging its shareholders on Thursday, Managing Director, Frank Adu Jr. outlined the conditions for the planned move.
“We find, we talk and nothing happens but hopefully one day something will happen. That doesn't frighten us at all. What has been my position on capitalisation since 2007 which got me into trouble?
"In 2007, I wanted a capitalisation of 200 million dollars for Cal Bank..That's why I am saying that it doesn't frighten us at all. It is something that if they move the capitalisation to 200 or 300, what number they move it to, we will welcome it and work towards getting it” he said.
He added they wouldn’t mind a merger with a foreign bank but maintained that only on condition that it won’t dilute the bank’s indigenous identity. The bank's profits shot up to 91 million Ghana cedis in 2013 from 49 million cedis in 2012 whilst it recorded some strong growth in most of areas of its operations.
Meanwhile, shareholders of CAL Bank have approved the appointment of the Director General of SSNIT, Ernest Thompson as board member of the bank. However the approval did not pass without concerns from some of the shareholders who were worried that, SSNIT was using the appointment take over the bank completely.
But Mr. Thompson tells JOYBUSINESS the shareholders concerns are misplaced. “Basically we are the majority shareholders of the bank already with about 33 percent stake and I think that those who are in banking would rather be elated that the Director-General is coming to serve on the bank’s board.
This is because if you know the way the banking system works where day in and day out they making requests to SSNIT in terms of fixed deposits are. So I think Cal Bank has rather been fast in getting me to come and serve on the board as the Director-General.
The Director General serves on some other boards. We keep on rotating at times he'll be on one other bank. Maybe it is the turn of Cal bank” he noted.
Source: myjoyonline.com
« Previous | Next »
View Comments
Sponsor Links
News Categories
Site Menu