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30.10.2013 Business & Finance

Asubonten Rural Bank mobilises more deposits

By Daily Graphic
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The Asubonten Rural Bank Limited, with its head office at Worawora in the Volta Region, has increased its deposits from GH¢3 million at the end of December, 2011 to GH¢4.41 million at the close of last year.

The board chairman of the bank, Nana Ansah Gyamera III, who disclosed this at the 12th annual general meeting (AGM) of the bank at Worawora in the Jasikan District, said the 46 per cent growth in deposits largely helped to bolster credit creation.

"Loans to our customers increased by GH¢101,543 from GH¢948,396 in 2011 to GH¢1.05 million in 2012,' the board chairman said, but bemoaned the slow repayment rate, thus partly accounting for low profits last year.

Nana Gyamera said profit before tax for last year dropped to GH¢14,072, as against the previous year's GH¢31,775, and attributed the dip to expenses incurred during the computerisation, coupled with non-performing loans that were written-off.

The chairman said there was the need to shore up capital to the Bank of Ghana's (BoG) new minimum stated capital requirement of GH¢300,000 for rural and community banks (RCBs), and, therefore, appealed to existing and prospective shareholders to buy more shares to enhance the capital base of the bank.

Nana Gyamera said the bank continued to embark on impressive corporate social responsibility programmes as the year under review saw it market donations in cash and kind to the Hohoe, Kpando, Krachi East and Krachi Nchumuru district assemblies towards the celebration of the 2012 National Farmers Day.

The chairman announced that the bank's branches at Worawora, Hohoe, Dambai and Chinderi had all been networked,  with the Katanga and Ve-Golokuati mobilisation centres earmarked for upgrading to full branches, while additional mobilisation centres at Asukwakwa, Anfoega, Banda and Borae would be opened by the end of this year.

The board chairman appealed to customers who had taken loans from the bank to re-pay to enable it to lend to new customers.

The Managing Director of ARP APEX Bank Ltd, Mr Kwadwo Kusi, in a speech read on his behalf by Mr Charles Pinkrah, urged the bank to take advantage of  technological improvement and put in place programmes and policies such as risk management, investing in staff training, product development and customer service to its customers in order to build a good corporate image and further enhance their overall result.

Mr Kusi expressed the hope that the bank would take advantage of foreign funds transfer such as MoneyGram and Western Union to deliver quality and efficient services to attract more clients in order to improve on the bank's commission-based income stream.

"The ARP Apex Bank is planning the deployment of products using the mobile phone to transact banking businesses like payments, transfers, checking of balances among others," he concluded.

By Emmanuel Modey/Daily Graphic/Ghana

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