Abokobi Bank makes profit

The ABOKOBI Rural Bank recorded a net profit of ?30.2 million last year, as compared to a loss of ?42 million in1997, Mr. R. A. Boi-Doku, Chairman of the board of directors has said.

He said the achievement was the result of the good mechanisms put in place by the bank and its board to ensure that all loans issued were retrieved.

Speaking at the bank's seventh general annual meeting of shareholders at Abokobi, near Accra, he said unfortunately, the 1998 profit would not be used as dividend but rather be transferred to the Income Surplus Account.

This will help to reduce the loss of ?67,149,318 incurred over the years, he said. Mr. Boi-Doku said the bank's total bad debts, which stood at ?180 million in 1995 had been reduced to about ?120 million as at December 31, 1998.

He also announced that the total short-term facilities granted by the bank in 1998 amounted to ?460,565,000 and were all in the area of Agriculture, transport, trading, cottage industry and loans to salaried workers.

Mr. Boi-Doku said the bank's capital base had been eroded due to poor credit recovery and appealed to shareholders to purchase more shares to increase the bank's fortunes. He said because of the recent reports of armed robberies at rural banks, the bank has taken a number of security measures to protect its properties.The board chairman thanked the Ga District Assembly for providing the bank with five million cedis for poverty alleviation.

Nii Akwei Thompson, Ga District Chief Executive, commended the bank for helping to raise the living standard of the people through short-term credit facilities.

He appealed to defaulters to repay loans, as "this attitude of non-payment of loans does not augur well for the sustenance of the scheme, and the growth of the bank".Mr. Sampson Ottu Darko, MP for Ga North called on entrepreneurs to establish industries at Abokobi and its surrounding areas to help reduce the high unemployment rate.

He also called on the inhabitants to save with the bank to enable them to qualify for the bank's short-term credit facilities. GNA