Bonzali Rural Bank makes 1.16 billion cedis unaudited profit

Kumbungu (N/R), Dec. 20, GNA - The Bonzali Rural Bank at Kumbungu in the Tolon/Kumbungu District made an unaudited profit of 1,168,811,628 cedis as at November, this year.

Deposits rose from 3,561,337,781 cedis in 2001 to 4,525,359,337 cedis, last year, showing a rise of 27 per cent.

Mr. Alhassan Imoro, the Chairman of the Board of Directors, who announced this at the third Annual General Meeting of the Bank at Kumbungu on Saturday, said the Bank made a net profit of 637,773,066, last year as against 701,060,900 in 2001, representing a shortfall of nine per cent.

He attributed the shortfall to the lowering of interest rate of government securities, which he said, formed the bulk of the secondary reserve of the Bank.

He said investments, rose from 1,824,900,000 cedis in 2001 to 2,675,850,000 cedis last year, showing an improvement of 47 per cent, adding that investments formed the secondary reserve of the Bank Mr Imoro, who was also chairman for the Meeting, told the shareholders that in 2001, the Bank gave out loans totalling 2,943,123,605 cedis as against 3,215,915,596 cedis, last year.

He said out of the loans the Bank offered last year, 2,227,690,000 cedis was sunk into the Tamale Municipality Women's Savings and Credit Project, known as "Credit With Education" (CWE).

Mr Imoro said as a social responsibility to the community, the Bank disbursed a total of 367,595,000 cedis to farmers' groups, mainly in the Tolon/Kumbungu area, adding that with financial support from Oxfam, a British NGO, the Bank had established another micro-finance project at Kumbungu, which served about 120 women.

He said: "This is in line with the new vision of Bonzali Rural Bank, which aims at changing rural passive recipients into active partners through prudent lending practices".

The Board Chairman said the Bank had also made some book donations to some schools in the Tolon/Kumbungu catchment area, as part of its social responsibility.

In an address read for him, Mr E.K. Kwapong, Managing Director of ARB Apex Bank (mini-Central Bank of the Rural Banks), commended Bonzali Rural Bank for its impressive performance, which he said, "has turned around the fortunes of the Bank".

He urged the Bank, however, not to be complacent but to devise more innovative ways to ensure the continued profitability of its operations in the years ahead.

He reminded the Bank that the expected further lowering of interest rate actuated by the government's determination to reduce inflation to a single digit next year, makes it imperative for it to develop innovative lending products and approaches to ensure the continued sustainability and adequate profitability at all times.

Mr Kwapong said to support the development of the rural banking system, all rural banks would be computerized next year, adding that a uniform software application had been procured for this exercise. He appealed to the Bank's customers who had been granted loans to endeavour to repay promptly to allow such facilities to be extended to other needy customers.

Mr Alhassan Baako, Tolon/Kumbungu District Chief Executive asked the Bank to provide financial assistance to needy students in the area to facilitate their academic pursuits.