Mr Paul Donkor (right), the Dormaa West District Chief Executive, Barima Dei Kusi Gyabaa (2nd right), the Ankobeahene of the Dormaa Traditional Area and Nana Bru Yaa Asamera (middle), Queenmother of Nkrankwanta, jointly cutting the tape to inaugurate the office. Inset: The front view of the head office

Nkrankwanta Area Rural Bank grows deposit base

Emmanuel Adu-Gyamerah Business News Oct - 12 - 2015 , 08:50

The Nkrankwanta Area Rural Bank in the Dormaa West District of the Brong Ahafo Region grew its deposit from GH¢ 3.6 million in 2013 to GH¢5.6 million last year.

The increase represents 54 per cent leap from the previous year’s figure.

In addition, the bank made a profit of GH¢112, 957.00 last year as against GH¢108, 232 it made in 2013, while its net worth grew from GH¢ 439,081 to GH¢ 634,353 over the same period.

The Board Chairman of the bank, Mr E. J. Ankamah made these known when he presented the 2014 report at the annual general meeting of the shareholders at Nkrankwanta.

Share capital

Addressing the shareholders, Mr Ankamah said even though the bank’s share capital grew slightly by four per cent, amounting to GH¢204, 551, the figure fell far below the GH¢300,000 minimum requirement set by the Bank of Ghana.

He reminded the shareholders that the GH¢300,000 capital requirement was likely to be increased to GH¢500,000 soon, adding that rural and community banks which could not meet that requirement would have to merge with another bank in order to remain in business.

“Our destiny is in our own hands to keep the name of our beloved bank forever or change the bank’s identity by merging with another bank,” he said. He appealed to them to increase their share capital.

Operational challenges

Mr Ankamah mentioned the failure of loan beneficiaries to honour their obligations as the bank’s number one operational challenge and asked loan defaulters to endeavour to repay their debts on schedule or face prosecution and blacklisting.

He added that the emerging stiff competition arising from the proliferation of a number of non-bank financial institutions such as credit unions, savings and loan companies, micro-credit companies in the hitherto reserved operational areas was threatening the bank’s deposit mobilisation drive.

As part of the meeting, the new head office acquired by the bank at the cost of GH¢600,000 was inaugurated.

Mr Ankamah thanked ARB Apex Bank Ltd for assisting the bank to acquire the new head office complex.