THE Kwahu Praso Rural Bank in the Eastern Region gave out GH¢204,822 as loans and advances to its customers last year as against GH¢162,200 in 2006, showing an increase of GH¢32,922.
The Chairman of the Board of Directors of the bank, Mr Eric Kwakye, made this known at the 13th annual general meeting of the bank at Kwahu Praso at the weekend.
Mr Kwakye stated that the bank had to increase its loan portfolio to boost the businesses of its customers as a measure of reducing poverty in its catchment areas.
He gave the breakdown of the credit facilities as agriculture: GH¢15,550, food marketing: GH¢25,430, general trading: GH¢52,082, transport: GH¢28,800, education: GH¢53,660 and others GH¢28,822.
To make it possible for the bank to grant more loans, Mr Kwakye appealed to all beneficiaries, especially defaulters, to repay their loans on time.
According to Mr Kwakye, the bank was able to give out more loans due to its credible performance in its overall operations.
He cited for instance that, last year the bank recorded pre-tax profit of GH¢35,237 as against GH¢12,556 in 2006, an increase of 180 per cent while its total deposits also rose from GH¢556,775 to GH¢714,490 within the same period.
The bank’s assets, Mr Kwakye stated, had for the past three years been recording growth, adding that in 2005, it recorded GH¢465,790 which increased to GH¢556,755 in 2006 and GH¢714,490 in 2007.
Mr Kwakye said the bank’s paid-up capital stood at GH¢12,092, which he stated was not encouraging.
He, therefore, appealed to shareholders to buy more shares to boost its capital.
Both Mr Twumasi Ankrah, the Head of Efficiency and Monitoring Unit of the ARB Apex Bank, who represented the Managing Director of the bank, and Mr Kwabena Acheampong, a representative of the Association of Rural Banks, commended the board, management and staff of the bank for their impressive performance.
They, however, urged the board to strengthen the bank’s internal control mechanisms to consolidate its gains.
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