Ga Rural Bank makes progress

Published in the Daily Graphic on 6/07/2010, pg 29

Story: Matilda Attram, Amasaman
The Ga Rural Bank Limited, has posted a net profit after tax of GH¢196,641 in 2009 representing 7.79 per cent over its operations in 2008.
The Chairman of the Board of Directors of the bank, Mr Joseph Hyde who made this known at the 18th Annual General Meeting of the bank at Amasaman, in the Ga West District, said the achievement was made in a competitive environment through the investment of additional equity funds and patronage of services offered by the bank.
According to the Chairman, the total assets of the bank also increased by 14 percent, from GH¢7,025,479 in 2008 to GH¢8,037,496 last year of which he said the bank had progressed in its productivity.
The bank’s total income also rose from GHc1,072,998 in 2008 to GHc1,480,403 in 2009 representing 37.97 per cent.
Mr Hyde said, the bank made additional investments in fixed assets of GH¢222,521 to improve on infrastructure as well as expand its business and network.
He stated that shareholders funds also hiked up by 22.31 percent from GH¢751,864 in 2008 to GH¢931,167 last year.
He noted that inspite of this, the bank made a modest increase of GH¢9232.00 in the advances of loans and overdrafts and extended GH¢9,106 as its support to communities, institutions and projects in its localities.
He further indicated that the board of the bank recommended that the bank maintained its dividend of 2 Ghana pesewas (2Gp) per share with regards to its performance in the previous year.
He added that the board would continue to pursue dividend policies to ensure a fair return on the investments of shareholders.
Mr Hyde indicated that although the world economic recession which began in 2008 affected the less capital inflows and foreign currency remittances in the country, the bank continued to expand in rural areas through the adoption of adequate policies to manage its challenges.
He said challenges posed by advancing big commercial banks continued to strengthen the operations of the bank in the competitive environment it found itself.
"Your bank continues to grow from strength to strength with your support and patronage. We shall endeavour to pursue policies and programmes as would utilise your resources to obtain maximum benefits and improve our profitability and value for shareholders," he added.
Mr Hyde called on the public and shareholders to continue to buy more shares to enable the bank expand its capacities to attract more businesses.
The General Manager of the bank, Mr Samuel Larkai, said the bank since its establishment in 1984 had complied with all the statutory provisions of the Bank of Ghana in terms of re-capitalisation among other requirements.
He said the bank aimed at promoting economic and infrastructure development of its areas of operation.
In an address, the Deputy Managing Director of ARB Apex Bank Limited, Mr Duke Osam-Duodu, pointed out that the performance of most Rural and Community banks had been encouraging as they consistently registered impressive deposits and increased in share capital, a phenomenon which he described as "indications of growing public confidence in the rural banking system."
He said although RCBs had achieved most of their aims there was still the need to consider their organisational restructuring, effective credit administration, cost control and reduction in its products so as to meet the challenges of the changing competitive businesses environment.
He encouraged management of Ga Rural Bank to introduce new and innovative banking products to promote the rapid development of the communities.
"Your bank should introduce new products like the granting of good advances to companies, enterprises and individuals, enterprise development and the concept of one-day loan within its areas of operation to ensure availability of deposits and improve the livelihood of the rural communities," he added.
He made an assurance that 25 rural banks would be computerised and networked by the end of 2010 through the Millennium Challenge Account (MCA) computerisation programme for RCBs, under the Rural Financial Services Project (RFSP), of which all RCBs and their branches/agencies would be computerised as well as networked to improve on operational efficiency.
The meeting ended with the appointment of a new board of director, Mr Nii Ayi Tagoe, and the re-election of two retiring directors on the board, Mr Godfred Seyedem Anku and Mrs Angela Peasah.