Unity Rural Bank net asssets increase
The net assets of Unity Rural Bank, a rural and community bank at Ziope in the Agotime Ziope District of the Volta Region, grew from GH¢11.79 million in 2013 to GH¢14.5 million in 2014.
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These represent a 23 per cent growth in the bank’s net assets and are the results of a strong growth in deposits, which also impacted positively on gross assets.
Total deposits rose from GH¢7.85 million in 2013 to GH¢9.57 million representing a 22 percentage growth within the same financial year.
Reduced profit
The bank, however, made a reduced net profit after tax of GH¢112,063 as against GH¢245,410 the previous year.
This was partly attributed to poor state of loans portfolio in which loan beneficiaries had failed to pay back their loans, which posed a huge liability to the bank.
The chairman of the board of directors of the bank, Togbe Binah Lawluvi VI, announced this at the 20th annual general meeting of shareholders of the bank at Ziope.
He said the major strategy for next year was to take practical steps to minimise exposure to macroeconomic risks and take advantage of emerging opportunities to maximise the wealth of shareholders.
Togbe Lawluvi said the perennial challenge of loan delinquency remained the main limiting factor in efforts to match forward.
Review of interest rate policies
In an address read by the manager of the internal control department, Mr Archibald Bond, the Managing Director of the ARB APEX Bank Limited, Mr Kwadwo Aye Kusi, advised rural and community banks to rethink their rate policies and review their interest rates on savings upwards, to enable them raise more deposits.
He said infrastructure for Information and Communication Technology (ICT) had stabilised, while the ARB would continue to invest in ICT infrastructure in line with the policy to bear all capital expenditure and recover only the recurrent cost from RCBs.
Mr Kusi said the ultimate aim was to make RCBs multi-channel service providers to deliver on time to their clients.
He appealed to shareholders to continue to invest in the capital of the bank by buying more shares to propel the bank to higher heights.
The Agotime Ziope District Chief Executive, Mr Michael Adzaho acknowledged that the establishment of the bank had transformed lives in its catchment area and also appealed to shareholders to continue their support to the bank by buying more shares.
He said banking had been brought to the doorstep of the people and that there was no need for people to keep their money at home to face the risk of burglary and fire outbreaks.
Mr Adzaho urged the management and board of the bank to think outside the box to reach the entire customers in densely populated area in the district to operate savings and loans system since there was more assurance of getting their money back and also to cushion them from the risks of falling prey to unlicensed savings and loans institutions who eventually defraud their unsuspecting customers.