Asokore Rural Bank improves performance

In spite of the challenges that characterised the 2013 economic climate in the country, the Asokore Rural Bank recorded a modest increase in its profit compared to that of the previous year.

At its 27th annual general meeting (AGM) at Asokore to consider the accounts of the bank for the year ended December 2013, the bank declared a profit of GH¢388, 579 being an increase of 47 per cent over that of 2012.

Addressing the shareholders, the board chairman of the bank, Mr Francis Nyanin, said even though there were many was  challenges in 2013 that slowed economic activities in the country, the bank managed to make some profits.

Consequently, the bank declared a dividend of GH¢ 0.017 per share amounting to GH¢ 65,144.00

Even though the bank was yet to meet the stated capital requirement of the Bank of Ghana for rural banks, the chairman said  the board decided to pay dividends since the earning per share was lower than the cost per share which was currently pegged at GH¢0.10.

He, thus, urged the shareholders to buy more shares to help the bank meet the stated capital of GH¢300, 000.00

Currently, the bank has a stated capital of GH¢192, 205 as compared to GH¢187,309 for the previous year.

He said there was the need for the bank to meet the minimum operating capital of BoG or risked being closed down or being forced to merge with another bank.

Mr Nyanin cited the rising cost of commodities, the hikes in utility tariffs with the equivalent increases in the prices of petroleum products and the lack of brisk business activities in the country as some of the factors that affected the performance of the bank.

As part of the programmes for next year, he said, the bank would embark on a vigorous loan recovery programme to collect all monies owed it.

He advised those who took loans from the bank to endeavour to repay them.

He said the bank had initiated a massive loans recovery programme and it may be unpleasant for customers to decide not to heed to this call.

The Omanhene of Asokore, Dr Nana S. Krobea Asante, advised the directors of the bank to invest more in Corporate Social Responsibility (CSR), particularly in the award of scholarships to members of the communities where they operated.

He said GH¢1,000.00 of CSR for a whole a year was woefully inadequate for a bank, adding, “even though you are not a development bank, you can invest in the educational development of the communities through the award of scholarships.”