GCB launches sale of shares in Koforidua

Koforidua, May 22, GNA - The Ghana Commercial Bank (GCB) has announced measures to provide 50 additional branches of the bank with Automated Teller Machine Services (ATMS) as well as establishing a stake in the energy sector to make the bank a giant in the financial sector of the country.

Mr Martin Mensah, a Deputy Managing Director of the bank in charge of Finance, said the measures were part of moves to consolidate the GCB's position in the retail banking sector to enable it reposition itself in respect of small and medium scale enterprises as well as large corporate banking businesses.

Speaking at the launch of the bank's rights' issue at Koforidua on Tuesday, Mr Mensah said the floatation of its shares would enable GCB to expand and enhance accessibility of branch and customer account nation-wide to its retailers and in addition provide a platform for small and medium scale enterprises.

The floatation, when successful, would enable the bank to raise 450 billion cedis in order for the leading state financial institution to implement strategies aimed at addressing operational challenges. He said the GCB is in the process of rationalizing its services that will lead to the clustering of key activities of the various branches and as well as double the number of its branches from 50 to 100.

Mr Mensah said GCB was also seeking to take a leading financing position in key business areas of the economy including cocoa, petroleum and gas.

He said through the course of the rationalizing process, some branches would be relocated, while some new branches would be opened. In addition, there would be a reconfiguration of some other branches including the regional branch at Koforidua to make it more convenient to customers.

The Deputy Eastern Regional Minister, Ms Susana Mensah who launched the shares, said it was the intention of the government to help enhance the role of the bank in the economy by helping it strengthen its capital base to enable it compete eff ectively within the banking industry in Ghana and the sub-region.

She urged Ghanaians to participate in acquiring a stake in the company for the necessary transformation to make the bank "agile and dynamic", capable of offering a variety of unique products and services. The Omanhene of the New Juaben Traditional Area, Daasebre (Dr) Oti Boateng, urged the bank's management to help transform Ghana's economy into a cashless one that would promote the use of credit cards instead of physical cash.

He said it was only by introducing such innovative products that the GCB can remain competitive among its peers. The GCB's rights' issue was being launched against the backdrop of recent sterling performances including an increase by over 68 per cent in total assets, 163 per cent increase in deposits and 282 per cent increase in loans and advances over the past five years. The company has also been buoyed by 39 per cent increase in profit before tax and a payment of more than 313 billion cedis in dividends over the same period.