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Banking | Regional

Amanano Rural Bank exceeds BoG stated capital

The Amanano Rural Bank Limited at Nyinahini in the Ashanti Region is exploring a more creative approach to increase its stated capital to broaden the bank's network and branches.

Although the bank exceeded the Bank of Ghana's (BoG) minimum capital requirement of GH¢1,000,000 in 2017, with 1.94 per cent growth (GH¢1,493,877) in 2018, the bank is adopting measures to improve the net worth of the bank.

Board Chairman of the bank, Anthony Kwame Gyan, is proposing a downward review of the bank's share prices from GH¢1 for new entrants and 0.50pesewas for existing shareholders respectively to 30.0pesewas across board.

"I believe this move will allow shareholders and prospective shareholders to buy more shares and also inject more cash into the business," Mr Gyan added.

Mr Kwame Gyan was addressing shareholders during the banks 2018 annual general meeting at Nyinahini.

"It is about time Amanano Rural Bank realize its dream of being self-sufficient to be secured in the future when the Bank of Ghana increases the stated capital of Rural banks from its present one million Ghana cedis,” he added.

He encouraged shareholders to buy more shares for increased shareholding and also to enable the bank to open more branches and improve on technological infrastructure.

The bank's total assets have increased from GH¢45,685,682 in 2017 to 49, 731, 864 in 2018 representing 8.85 per cent growth.

Among other strides, the bank increased its total deposit in 2018 by 16.94 per cent -- that is from GH¢35,044,548 in 2017 to GH¢40,982,676 in 2018.

The bank attributes the increase to intensive mobilisation drive by management and staff coupled with confidence in the rural banking sector by customers.

Also, during the 2018 fiscal year, the bank committed GH¢55,213.58 towards fulfilling its part of social obligations to the communities in and around the bank's catchment areas.

"In line with our corporate strategy, we committed GH¢14, 563.58 to help needy but brilliant students in a form of scholarship and also stretched our social responsibilities to other sectors like agriculture and health," the board chairman added.

Because of the bank’s focus on agriculture and support for farmers, it supported cocoa purchases of licenced cocoa buying companies.

A total of GH₵66,740,876 worth of cocoa was purchased in the 2018 cocoa season as compared to GH₵56,302,375 recorded in 2017.

This shows a percentage increase of 18.54.

Looking into the future, the bank is poised to focus more on corporate strategy in building and consolidating on the initiatives started. 

Mr Kwame Gyan added that "the bank will improve on performance without relenting on operating efficiency to deliver superior value to shareholders.”

The Chief Executive Officer of the bank, Christian Osei Bonsu, in an interview, said the bank’s business focus in 2019 and beyond is on driving growth, innovation, efficiency and service as the main pillars in achieving profitability.

Mr Osei Bonsu is of the view that the rural banking industry has a purpose for which they were established, and Amanano Rural Bank will not move away from its core objectives of ensuring mutual benefits between the bank and its stakeholders.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.