By Robert Tachie Menson
Nkrankwanta (Bono), Nov. 29, GNA – Mr Kwaku Agyemang Manu, the Acting Board Chairperson of the Nkrankwanta Area Rural Bank in the Dormaa West District has called on the ARB Apex Bank to facilitate the prosecution of loan defaulters of the bank.
“Let the judiciary understand that the banks thrive on the loans they give to customers for the courts to speed up adjudication of cases brought before them,” he stated.
Mr Manu expressed disappointment about the growing and unacceptable attitudes and behaviours of some customers of the bank who failed to repay their loans, worrying that practices were negatively affecting the operations of the bank.
He was speaking at the 14th Annual General Meeting (AGM) of the Nkrankwanta Area Rural Bank at Nkrankwanta, the district capital.
Mr Manu said he was worried that none of the cases of the defaulting customers of the bank charged before court in Sunyani and Wamfie had been resolved or settled by the courts.
He said despite the numerous macro-economic challenges, the bank made significant achievements in the year of review, saying that customer’s deposits which remain a key balance sheet component grew by 17 per cent from GGHC23, 724, 491 in 2022 to GHC27, 867, 185 in 2023.
Mr Manu, also the Member of Parliament for Dormaa Central said the bank’s total asset had however been quite stable between 2022 and 2023 with one per cent growth, saying it achieved an impressive financial performance that underlined continued commitment to operational efficiency and an improved shareholders wealth.
The Bank recorded an unprecedented profit of GHC1, 913, 811 in 2023 as compared to GHC769, 159 in 2022, an increase of 149 per cent. Its stated capital also increased from GHC1, 199, 809 in 2022 to GHC1, 290, 193 in 2023, a representation of eight per cent growth.
“Even though this is still above the regulatory requirements, the bank needs more shares to always stay above the capital adequacy ratio requirements of 10 per cent,”, Mr Manu stated.
He therefore urged the shareholders and communities in the operational area to purchase more shares for their own benefit.
Mr Manu indicated that the Board was working jointly and strategically with the management, saying a proposal had been put forward for the declaration of a dividend payment of GHC0.05 per share.
That remained a significant milestone in the history of the bank’s existence, he stated, and enumerated some challenges including difficulty in increasing its capital base confronting the bank’s operations now.
“That is basically due to the unwillingness of some shareholders to top up their share capital in a form of fresh cash purchase”, he explained, worrying that the bank had no access to the locked up funds with Security and Exchange Commission (SEC) and that had hindered the rate of growth over the years.
He said the bank was also working together with the proposed members of the Board of Directors, who applied and were shortlisted to complete the Personality Note Forms for onward submission to the bank of Ghana for approval.
That would help resolve the shortfall in the Board’s strength to meet the new Corporate Governance Directive and expressed the hope that the Bank of Ghana would approve it by the close of the year.
GNA