Kwahu Praso Rural Bank makes profit after 25 years

Kwahu Praso, Aug. 14, GNA - Kwahu Praso Rural Bank which faced series of financial malpractices and lost credibility in the banking sector about 25 years ago, made a net profit of GH=A211,356 (113.56 million cedis) last year as against GH=A29,833 (98.33 million cedis) in 2005, an increase of 15.48 per cent.

Management of the bank increased its investment from GH=A2260,000 (2.6 billion cedis) in 2005 to Gh=A2320,000(3.2 billion cedis) last year despite the fall in government Treasury bill rate. Mr Eric Kwakye-Darfour, Chairman of Board of Directors of the Bank, announced this at the bank's 12th annual general meeting at Kwahu Praso at the weekend.

He said the bank's deposit also rose by 19.53 per cent from a mobilization of GH=A2 466,000 (4.66 billion cedis) in 2005 to GH=A2557,000 (5.57 billion cedis) last year while its assets went up from GH=A2536,000(5.36 billion cedis) in 2005 to GH=A2 693,000 (6.93 billion cedis) in 2006.

Mr Kwakye-Darfour, said total investment of the bank increased from GH=A2 280,000 (2.80 billion cedis) in 2005 to GH=A2 320,000 (3.2 billion cedis) last year while it was able to raise a share capital of Gh=A26,150 (61.5 million cedis) last year. He said the bank paid a total of Gh=A25,750 (57.4 million cedis) as bonus share to its Shareholders which had been used for the payment of dividends to the shareholders and had therefore raised the bank's share capital to GH=A2 11,906 (119.06 million cedis).

Mr Kwakye-Darfour announced that the bank had been rated the 8th Well Managed Rural Bank in the country out of the 123 rural banks by the Apex Bank and advised its customers to re-pay loans granted to them. He advised the shareholders to increase their share capital to enhance its capitalization.

Mr Solomon Akwettey, President of Eastern Regional Chapter of Association of Rural Banks, said recent events in the country indicated that armed robbers had turned their attention on rural banks. He therefore, advised managements of rural banks to abide by instructions and directives of the Bank of Ghana and ARB Apex Bank in respect of their cash holdings and in transit to forestall robbery at the banks and urged them to insure their cash to avoid natural disasters.

Nana Onwona Asante, Kwahu South District Chief Executive, advised managements of rural banks to use part of their profit to pay for the premiums of rural dwellers to enable more people register with the National Health Insurance Scheme.