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Business News of Wednesday, 7 January 2015

Source: B&FT

Nkoranman Rural Bank holds 17th AGM

The Nkoranman Rural Bank Limited at Seikwa in the Tain district of the Brong Ahafo Region has held its 17th Annual General Meeting of shareholders at Seikwa, which brought to light a satisfactory performance in almost all the financial indicators.

The bank’s total investments rose from GH¢684,734 in 2012 to GH¢1,484,734 in 2013, representing an impressive increase of 53.8%.

The total assets value of the bank also appreciated to GH¢5,568,892 at the end of the 2013 fiscal year, growing by 32.4% from the previous year’s estimate of GH¢3,762,146.

Total deposits on the other hand grew from GH¢2,993,467 in 2012 to GH¢4,562,475 during the year under review; showing an increase of 34.3%.

Ms. Victoria Konadu, Board Chairperson of the bank who made these known, however said the hostile economic environment coupled with other factors such as provision for bad/doubtful debts and high cost of computerisation suppressed the bank’s profit growth.

The bank made a loss of GH¢212,893 in 2013, indicating a decrease of negative 109% over the 2012 amount of GH¢21,268.

Meanwhile, the quantum of loans and advances disbursed by the bank within the time-frame went down by 18.6% from GH¢1,910,071 in 2012 to GH¢1,609,398 in 2013.

Though the bank’s share capital rose from GH¢98,837 to peg at GH¢125,946 as at 31st December 2013, it still trails behind the new Bank of Ghana minimum requirement of GH¢300,000.

Ms. Konadu therefore made a passionate appeal for shareholders to increase their stock and help boost the bank’s share capital.

She announced that the Board of Directors was unable to recommend the payment of dividend for the year under review, and appealed to shareholders to bear with them.

The Chairperson said as part of corporate social responsibility, the Directors are considering rolling-out a scholarship scheme to support needy but brilliant Senior High School students who are children of its shareholders.