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The Management of Wenchi Rural Bank in the Brong-Ahafo Region has designed strategic measures to exceed the Bank of Ghana’s (BoG) minimum capital of GHC1 million by the close of the year.
It has also injected GHC400, 000 into the business as preference shares, as it seeks to raise additional GHC2.5 million in ordinary, preference shares and debt.
Mr Yaw Odame Darkwa, the Chairman of the Board of Directors of the Bank who announced this said the Bank’s total capital stands at GHC978, 330 whilst its total asset jumped from GHC12, 221,067 in 2015 to GHC13, 920,943 in 2016.
Speaking at the Bank’s 5th Annual General Meeting at Wenchi, the Board Chairman urged its stakeholders to up their stake in the Bank so that it would be able to go beyond the Central Bank’s capital requirement.
He said the Bank’s investments also increased from GHC318, 806 to GHC370, 778, adding that its deposits jumped from GHC8, 177,793 to GHC9,807,853. The Bank’s total shareholders fund also increased from GHC12, 221,067 to GHC13,920,943, while its net profit also jumped from GHC21,922 to GHC69,466, a 217 per cent increase.
Mr Darkwa said the Bank intended to invest about GHC2 million in short term investments as a means to strengthen its “balance sheet and make it more liquid”, adding emphasis would be on reducing exposure to individual clients.
He said it had also decided to sign a performance contract with management to increase productivity, saying “whoever does not meet the bill will be asked to exit”. The Board Chairman indicated that the Bank was reviewing the functionality and the robust fullness of the optimum plus Banking software, saying it would install its Automated Teller Machine (ATM) next year.
Mr. Alex Kwasi Awuah, the Deputy Managing Director of the ARB Apex Bank, commended the Bank’s shareholders for the increase in deposits and asked borrowers to endeavour to repay their loans. He explained that the banking sector remained competitive, hence the need for all rural banks to meet the BoG’s GHC1 million minimum capital requirement to be able to compete keenly with other commercial banks.
Mr. Awuah urged them to be serviceable and deepen its relationship with customers to sustain their interest to do business with them.
