30.09.2004 Business & Finance

Kumawuman Rural Bank to raise share capital

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Kumawu (Ash), Sept.30, GNA- Shareholders of Kumawuman Rural Bank, had resolved to raise the share capital of the financial institution, from 89 million cedis to 600 million cedis, by buying additional shares. To set the tone for the resolution, Mr Anthony Aboagye, Managing Director of the Kumasi-based Iron Birds Company Limited, bought 10 million cedis shares, while Professor Asenso Okyere, Vice-Chancellor of the University of Ghana (UG) Legon bought two million cedis.

Mr Godfried E. Amoah, Chairman of the Board of Directors expressed concern about the low capital base of the Bank, considering the phenomenal growth in deposits for the fiscal year.

In an address to the 11th Annual General Meeting of the Bank, at Kumawu, he said the capital increase from 40.4 million cedis in 2002 to 82.9 million cedis in 2003, was due to bonus shares and not as a result of additional injection of capital by shareholders.

He said the Bank should increase its operational capital to a minimum of 100 million cedis to transform itself to a Community Bank. The Board Chairman said the Bank's total assets increased from 8.34 billion cedis in 2002 to 13.07 billion cedis in 2003, while its current assets went up from 8.2 billion cedis in 2002 to 12.9 billion cedis in 2003.

Investment portfolio of the current assets increased from 5.2 billion cedis to 7.9 billion cedis, whilst cash and short-term funds increased from 2.1 billion cedis to 2.8 billion cedis.

Mr Amoah said, about 27.2 million cedis was spent on the Oyoko Westphalian Vocational school; the Bodomase chief's palace fund; Ahensan Presbyterian Church; the Kumawu Traditional Council; Kumawu Methodist Church, and the Tweneboa Kodua Secondary School as part of the Bank's social responsibilities.

The Bank also assisted the Sekyere East District Assembly, to prepare towards the annual Farmers Day celebrations, while a total of 22.9 million cedis was spent on scholarship grants to 25 students. Mr Amoah pledged the Bank's commitment to assist brilliant but needy pupils in its catchment areas.

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