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Business News of Wednesday, 7 September 2005

Source: GNA

Bosomtwe rural bank makes profit

Kuntanase (Ash), Sept. 7, GNA - The Bosomtwe Rural Bank at Kuntanase in the Bosomtwe-Atwima-Kwanwoma (BAK) district recorded a profit of 2.2 billion cedis in 2004 as against two billion cedis in 2003.

The bank also mobilised a total of 29.4 billion cedis as deposits as against 20.9 billion in 2003, while its investments in treasury bills and other money market instruments grew by 34.4 percent, up from 16.1 billion cedis in 2003 to 21.7 billion cedis in 2004. Mr Simon Osei-Mensah, chairman of the board of directors, announced this at the 15th Annual General Meeting of the bank at Kuntanase on Tuesday.

He said in spite of the fall in the treasury bill rate that constrained the income generation capacity, the bank showed resilience by making appreciable gains in the year under review. Mr Osei-Mensah said the bank's total assets grew by 43.4 percent from 26.3 billion cedis in 2003 to 37.9 billion cedis in 2004. It disbursed a total of 8.9 billion cedis to its clients as loans as against 5.1 billion cedis in 2003.

He said the ARB Apex Bank had placed the bank as the second strongest rural bank in Ghana while it had been ranked 47th in the Prestigious Club 100 companies.

On social responsibility, Mr Osei-Mensah said the bank expended a total of 69 million cedis in assistance to community improvement projects and scholarships to needy children in Senior Secondary schools. He said the board had set up a human resource development committee to recruit qualified staff to ensure an effective management succession plan for the bank.

Mr R. M. Addo, an official of the ARB Apex bank, commended the Bosomtwe Rural Bank for maintaining a steady progress in its operations and urged the board to jealously guard against the achievements of the bank.

He said the ARB Apex bank was initiating a project to network all rural banks in the country and train their staff in software applications and the new banking law to enable them report accurately. Mr Addo said the initiatives would help reform rural banks to play leading role in the banking industry. Mr Bright Addai-Mununkum, District Chief Executive for BAK in an address read for him, commended the bank for playing a complementary role in efforts to reduce poverty in the district.