Profit dips at Nandom Rural Bank

Nandom (UW), Oct 23, GNA - The Nandom Rural Bank, in conjunction with the ARB Apex Bank, is in the process of developing new investment products to sustain the profitability of the bank that has dipped due to the fall in the Treasury bill rate.

The bank made a net profit of 478.45 million cedis from its operations last year as against 501.70 million cedis in 2003, a decrease of 4.6 per cent, Mr Jacob Yirerong, Chairman of the Board of Directors of the bank, has said.

He was addressing the annual general meeting of shareholders of the bank at Nandom in the Lawra District. Mr Yirerong said although the government's policies were good for the general well being of the economy, the 16.38 per cent Treasury bill rate had not helped rural banks because they could not find other quick yielding investment products to raise their incomes.

Mr Ambrose Dery, Upper West Regional Minister, urged the bank to devise innovative methods of mobilizing locked-up capital in its catchments area without compromising standards and practices. He expressed regret that the bank's lending to customers had declined by 4.8 per cent due the refusal of customers to pay back their loans.

Community leaders, chiefs, shareholders and borrowers should therefore help the bank to educate every borrower to realize the implication of non-payment of loans, as the bank is community owned. Mr Dery commended the bank for registering 29 per cent growth in 2003 and its 58 per cent growth of investments in Treasury Bills that had a net worth of 34.7 per cent.

Mr Richard Addo, Head of Training of ARB Apex Bank, said a Rural Bank Training School would be established at Nsoatre in the Brong-Ahafo Region as soon as funds are available.

He called on the bank to undertake serious deposit mobilization strategies and prudent but aggressive loan disbursement and recovery strategies to enable it to sustain its impact, outreach and profitability.