The Nkrankwanta Area Rural Bank in the Dormaa West District in the Brong Ahafo Region increased its deposit mobilisation from GH¢5,609,521 in 2014 to GH¢6,982,003 in 2015 in spite of the myriad of problems encountered by the financial sector in the year under review.
The 24 per cent increase in deposit mobilisation, according to the board chairman of the bank, Mr E. J Akomian, was achieved through the strategies and extensive deposit mobilisation drive adopted by the board and management.
In his address at the seventh annual general meeting (AGM) of the bank at Nkrankwanta, Mr Akomian explained that the total asset of the bank also grew from GH¢7,107,345 to 8,715,729, representing 17 per cent increase during the period under review.
“As you are aware, we have to increase our share capital ratio in the bank’s assets; this is to help meet the bank’s capital adequacy ratio.”
Mr Akomian, whose address was presented by the Member of Parliament for Dormaa Central, Mr Kwaku Agyeman-Manu, also a member of the board of directors of the bank, stated that during the year under review, the country’s economic performance deteriorated and that, according to him, negatively affected the activities of the bank.
“All the microeconomic indicators, including rate of inflation, interest rates, exchange rates and others, recorded adverse movements,” he said.
He added that there was also intense competition in the bank’s operational areas from orthodox and non-orthodox banks, as well as other entities in the informal sector such as susu operators and money lenders.
Mr Akomian said the operations of microfinance companies such as DKM and God Is Love also had a toll on rural and community banks in the Brong Ahafo Region.
That, according to him, resulted in the bank making a profit before tax of GH¢11,699 as against GH¢112,957 in 2014, which represented a reduction of 91 per cent profit in the year under review.
Mr Akomian told the shareholders that the failure of loan beneficiaries to repay loans granted them on maturity remained the bank’s major challenge.
He, therefore, appealed to the bank’s loan defaulters to repay their loans on schedule to avoid being blacklisted and also help others to access loans in time of need.
Mr Akomian added that the emerging stiff competition from orthodox and non-bank financial institutions such as credit unions, savings and loans companies was threatening the bank’s deposit mobilisation.
On the bank’s corporate social responsibility, the board chairman said it had provided temporary accommodation in a furnished apartment for the newly appointed Dormaa West District Director of Education at Nkrankwanta.
In addition, the bank donated one unit steel cabinet to the Ghana Education Service (GES) in addition to sponsoring the Dormaa West Schools Spelling ‘B’ Competition.
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