UNDP capitalizes Mumuadu Rural Bank with computers

Osino (E/R), Sept 25, GNA - The United Nations Development Programme (UNDP) has, under its Microstat Micro-financing project, provided the Mumuadu Rural Bank at Osino in the Fanteakwa District with over 1.8 billion cedis in capital grant and computers and accessories last year.

The African Development Foundation (ADF) has also granted the bank over one billion cedis out of a 1.905 billion-cedi facility for disbursement to its customers.

Mr Seth Adom Asomaning, the Chairman of the Board of Directors of the bank, who said this at the bank's 17th Annual General Meeting at Osino on Saturday, commended the two bodies for their immense support for the bank.

He said the bank was able to make a net profit before tax of 876.5 million cedis and this was 34 per cent increase over its 2003 profit of 725.5 million cedis.

Its total income also increased by over 31.7 per cent to over 5 billion cedis instead of 3.8 billion cedis the previous year. The bank advanced 13.3 billion cedis to 6,416 customers in 2004 as against 11.9 billion cedis in 2003 but expressed regret that repayment of 8.6 billion cedis was outstanding and warned that the bank would resort to court action to retrieve the balance from defaulters. On investments, the board chairman said this increased from 6.31 billion cedis in Treasury Bills in 2003 to 10.65 billion cedis last year, while total deposits increased from 13.69 billion cedis to 18.56 billion cedis held by 30,504 depositors.

In an address read for him, the Managing Director of the ARB Apex Bank, Mr Emmanuel K. Kwapong, commended the bank for increasing its stated capital from 254 million cedis to one billion cedis. He said the bank's donations under its social responsibility reduced from 23 million cedis in 2003 to 3.7 million cedis last year and urged it to commit more funds to fulfil its social obligations to the community.

Mr Kwapong noted with appreciation the bank's involvement in micro-finance activities and hoped this would be sustained towards helping to reduce poverty. 25 Sept 05