Rural Bank shareholders told to purchase more shares

The Nkrakwanta Rural Bank Limited in the Dormaa West District of the Brong – Ahafo Region has urged the shareholders to purchase more shares to help meet the minimum capital requirement of the Central Bank.

Mr Edmond Joseph Akomian, the Chairman of Board of Directors of the Bank, made the call at the Sixth Shareholders’ Annual General Meeting and Commissioning of the Bank’s New Head Office in Nkrakwanta.

The Bank of Ghana in July announced an increase in the minimum capital for micro finance institutions, financial NGOs and rural banks. The institutions need to meet at least part of the new minimum capital before they can operate by the end of the year and everything by 2017 for rural banks.

Therefore, all licensed Rural/Community Banks are to raise their minimum paid-up capital to GH¢300,000.00 by 31st December 2015, GH¢500,000.00 (Five Hundred Thousand Ghana Cedis) by 31st December 2016 and GH¢1,000,000.00 (One Million Ghana Cedis) by 31st December 2017.

Mr Akomjan said during the year under review the country’s economic performance deteriorated and this negatively affected the Bank’s activities.

“All the macroeconomic indicators including the rate of inflation, interest rates, exchange rates and others recorded adverse movements,” said. ”There was also intense competition in the Bank’s operational areas from orthodox and non-orthodox banks as well as other entities in the informal sector such as “Susu” operators and money lenders”.

In spite of these challenges, the Chairman, stated that the Board and Management worked tirelessly to improve on its performance during the year as total deposits grew from GH?3, 638,025.00 in 2013 to GH?5, 609, 521.00 in 2014 representing 54 per cent.

The Chairman said the bank grew its total loan portfolio by 18 per cent, meaning that, “The bank could not grant loans as expected, which were mainly due to the borrowers’ attitude towards repayment of facilities granted them”.

Mr Akomian said the bank’s total assets went up by 45 per cent from GH?4, 891,119.00 in 2013 to GH?7, 107, 345.00 in 2014.

The meeting afforded the opportunity to take stock and review the activities and performance of the Bank over the past year and more importantly, give opportunity to directors to account for their stewardship.

Mr. Paul Donkor, the District Chief Executive for Dormaa West, who is also the Board Chairman of the Kaaseman Rural Bank, noted that the purchase of additional shares could increase the bank’s investment portfolio alongside increasing shareholders profit margins.

The meeting afforded the opportunity to take stock and review the activities and performance of the Bank over the past year and more importantly, give opportunity to directors to account for their stewardship.

He encouraged the staff and management of the bank to double their efforts at deposit mobilisation by adopting good customer relations practices, while simultaneously ensuring the attraction and retention of customers.

The DCE appealed to employees of the bank to desist from engaging in fraudulent activities, which would adversely affect the image and economic fortunes of the bank.

Mr. Donkor appealed to the Board of Directors to provide good incentive packages and better remuneration to motivate the staff, saying that the survival of the bank also largely depended on their socio-economic.

Mr. Vincent Asamoah, the Member of Parliament for Dormaa West, urged customers to be extremely mindful about where they deposited their savings to avoid becoming victims of the activities of fraudulent non-financial institutions.