Odotobri bank records more than two billion cedis profit

Jacobu (Ash), June 5, GNA - The Odotobri Rural Bank at Jacobu in the Amansie Central district of Ashanti posted a net profit of 2.1 billion cedis last year, representing more than 54 percent increase over the previous year's profit of 1.3 billion cedis. The bank's total deposits also rose from 24.4 billion cedis in 2004 to 30.7 billion cedis as at the end of December last year, whilst total assets increased from 31.6 billion cedis to 39.2 billion cedis. Mr J. Owusu-Boadi, Chairman of the Board of Directors of the Bank, announced this at the 19th Annual General Meeting of shareholders of the Bank at Jacobu on Saturday.

He said the Bank granted a total of 21.7 billion cedis as loans and overdrafts with more than 10 billion cedis going into commerce and agriculture whilst the remaining went into cottage industry, transport and other activities.

The Board Chairman said as part of the Bank's social obligations, a total amount of 15 million cedis was spent on scholarship scheme to mitigate the financial hardship of brilliant but needy students. "In all, 30 students from the second cycle and tertiary institutions benefited from the scheme. The bank also made various donations to some institutions to the tune of 92.3 million cedis". Mr Owusu-Boadi announced that the Bank's head office and that of the Jacobu Agency had been electronically networked whilst a license had been obtained from Bank of Ghana to open a new branch in Kumasi. Mr Emmanuel Kwapong, Managing director of ARB Apex Bank, noted that Rural Banks were growing very fast in terms of assets, deposits, products and the use of modern technology and that the policy of appointing the right calibre of directors should be observed by shareholders.

He cautioned against the election of board of directors on family lines stressing, "let me caution you therefore that the election of directors to your board should be devoid of favouritism and nepotism but rather should be based on competencies, skills, knowledge and experience".

Mr Kwapong commended the Bank for its impressive growth over the last five years.