ASSETS, DEPOSITS OF ADONTEN BANK RISE (PAGE 20)

THE Adonten Community Bank in the East Akyem District of the Eastern Region last year witnessed a significant growth in assets and deposits.
While total assets rose from GH¢1,660,931 in 2006 to GH¢2,075.930 in 2007, showing an increase of 30 per cent, deposits also went up from GH¢1,250,140 to GH¢1,595,244 within the same period.
During the same period, the bank granted loans and overdrafts amounting to GH¢894.505, compared to the GH¢751,651 given out in 2006.
The Vice-Chairman of the Board of Directors of the bank, Dr Edward Owusu-Manu, made this known at the annual general meeting of the bank at Tafo.
According to Dr Owusu-Manu, the share capital of the bank, which stood at GH¢56,500 in 2006, shot up to GH¢65,885 in 2007 but was far below the Bank of Ghana’s statutory requirement of GH¢150,000.
He, therefore, appealed to shareholders to increase their share capital.
The bank’s profit, he said, dropped considerably from GH¢52,265 in 2006 to GH¢20,685 in 2007 and attributed the situation to the non-payment of bad and doubtful loans and overdrafts, as well as the redenomination exercise, during which a number of items were purchased.
Dr Owusu-Manu appealed to loan defaulters to pay up to avoid legal action being taken against them to retrieve the loans.
To broaden its operations, he said the bank would soon open agencies at Abomosu and Ehiamankyene, while plans were underway to computerise the Tafo headquarters of the bank with its branches at Kukurantumi, Anyinam and Koforidua.
The Head of the Inspection and Audit Department of the ARB Apex Bank, Mr Hyginus S. Zon, who read the speech of the Managing Director, Mr Eric Osei-Bonsu, expressed dissatisfaction at the fall in the bank’s profit and implored the board, management and staff of the bank to work assiduously to reverse the trend in order to maximise shareholder value.
Mr Zon also urged the board to strengthen the internal control system of the bank to prevent fraud that might lead to its liquidation.