Standard Chartered to broaden shareholder base

Accra, Aug. 17, GNA - Mr Sanjay Rughani, Executive Director in-charge of Finance of Standard Chartered Bank Ghana Limited (SCB), on Tuesday said management was considering floating bonus shares to expand its shareholder base.

"This would ensure availability of more liquidity as well as result in a reduction in the share price of the bank, which currently stands at GH¢43.00," Mr Rughani said.

SCB formerly registered with the Ghana Stock Exchange's (GSE) in 1991 and currently boasts of 19 million shares, out of which 70 per cent is owned by its parent company, Standard Chartered Holdings (Africa) BV, while the rest is spread among individual investors.

Speaking at the GSE 93Facts behind the Figures" series in Accra, Mr Rughani said SCB was conscious of the stiff competition in the financial sector and would continue to churn out products as well as deliver services to maintain its position as one of the best performing banks in the country.

He said even though SCB largely believed in employing other alternatives such as SMS, Internet and E-Zwich platforms to reach all its customers, it was also considering setting up two more branches in addition to the existing 21 to serve its growing customer base.

Mr Rughani said SCB was poised to increase its profit from GH¢84 million recorded in 2009 financial year, to GH¢100 million this year adding its second quarter performance proved that this was possible.

He said management would continue and appropriately respond to market exigencies to reduce interest rates; which currently stood at 24 per cent for the SCB.

Mr Rughani announced the appointment of Mr Kweku Bedu-Addo, Executive Director responsible for Origination and Client Coverage at SCB, as the new Chief Executive Officer (CEO) of the bank.

He said Mr Hemen Shah, immediate past CEO of SCB, formally handed over to Mr Bedu-Addo in Kumasi last Monday.

Mr Rughani said Mr Bedu-Addo became the first Ghanaian to be appointed to that position in the 114 year history of the establishment of the SCB in Ghana.

Mr Kofi Yamoah, Managing Director of GSE, said the move to broaden the shareholder base of the bank was long overdue and urged management to speed up the process.