KWAHU PRASO, MUMUADU RURAL BANKS DECLARE PROFITS (PAGE 42, SEPT 29, 2010)

THE Kwahu Praso Rural Bank last year made an after tax profit of GH¢70,000.21 as against GH¢27,302 it made in 2008, an increase of about 60 per cent.
Within the same period, the bank’s deposits grew from GH¢919,231 to GH¢1,204,064, a rise of 31 per cent while investments also went up from GH¢420,000 to GH¢600,000, an increase of 42.9 per cent.
The Chairman of the Board of Directors of the bank, Mr Eric Kwakye made this known at the 15th annual general meeting of the bank at Kwahu Prasu, its headquarters at the weekend.
He said such a significant improvement of the fortunes of the bank, which he attributed to prudent measures instituted by the board, made it possible for the bank to give out a GH¢ 606,715.00 as loans to customers.
Mr Kwakye gave the breakdown of the loan as agriculture—GH¢74,200, micro-credit—GH¢75.000, trading—GH¢127,100, transport—GH¢22,250, education—GH¢114,555 and others GH¢193,610.
Mr Kwakye, however, expressed the board’s dissatisfaction about the refusal of some of the loan beneficiaries to repay to enable others to also enjoy the facility, hinting that legal action was being considered to retrieve the loans.
To further improve the fortunes of the bank, share holders by a unanimous decision decided to increase the number of shares and also add GH¢80,000 bonus share to the share capital.
The Head of Finance and Strategic Planning of the ARB Apex Bank, Mr Kwadwo Aye Kusi, who read the speech of the Managing Director, Mr Eric Osei-Bonsu, said most of the rural banks were doing well.
He, however, stressed the need for some of them to merge for their survival due to the competitive nature of today’s banking.
At Osino where the Mumuadu Rural Bank held its annual general meeting, the Chairman of the Board of Directors, Mr Seth Adom-Asomaning said last year, the bank gave out GH¢6.1 million as loans to 16,059 customers as against GH¢4.10 million disbursed in that respect in 2008.
He said during the same period, the bank gave out GH¢5.01 million as advances.
Mr Adom-Asomanin said the bank was able to give out the loans and advances because its fortune had improved tremendously over the years.
He cited, for instance, that the bank’s assets grew by 17.4 per cent in 2008, from GH¢ 7,381,942.57 to GH¢9,190,716 in 2009 while investments in treasury bills hiked from GH¢948,248 to GH¢1,129,218 within the same period.
Mr Adom-Asomanin said the bank was also negotiating for a GH¢500,000 loan from Speed Ghana to be given out to customers.
With regard to the underprivileged in society, Mr Adom-Asomaning stated that a total of GH¢12,511 was spent last year on various social initiatives out of which GH¢10,000 went to the Agricultural University College at Bunso.
The Head of the Banking Operation Department of the ARB Apex Bank, who read the speech of the Managing Director, Mr Eric Osei-Bonsu, congratulated the bank for its significant improvement in its operations and assistance to the public.
The Deputy Eastern Regional Minister, Mr Baba Jamal Muhamed Ahmed, who also attended the function, expressed the government’s appreciation to rural banks for creating jobs for the unemployed.