The year 2011 was very challenging for all Rural Banks in the country; but through prudent management, the Lower Pra Rural Bank Limited gave an impressive performance.
The Bank grew its total deposit by 56% from GH¢18million in 2010 to GH¢28million in 2011, which is an indication of the bank’s rigorous deposit mobilisation drive and the extent of patronage by communities in the catchment area.
Total advances disbursed under lending programmes increased from GH¢10million in 2010 to GH¢15million in 2011, representing an increase of 50%.
Mr. Nathaniel Arthur, the Board Chairman of the Lower Pra Rural Bank Limited, said the total investment in Treasury bills as at December 2011 was GH¢10.6million as compared to GH¢6.9million in 2010, representing an increase of 54%.
At the 24th Annual General Meeting of the Bank at Shama, he said the total assets as at December 2011 was GH¢32.6million as against GH¢21.4million in 2010 representing an increase of 52%, explaining that the growth in total assets conforms to the bank’s sustainable growth rate policy.
He said the bank made a net profit before tax of GH¢1,219,494 as at December 31, 2011 as against GH¢828,232 in 2010, representing an increase of 47%.
He said the net-worth of the bank increased from GH¢2.9million in 2010 to GH¢3.6million in 2011. This consists of stated capital of GH¢1.3million and income surplus and reserves of GH¢2.3million.
“In line with our vision to promote community development in our catchment area, we spent GH¢130,288 to support the development activities in the area of education, health, community initiated projects among others,” he added.
Mr. Franklin Belnye, the Head of Banking Supervision Department of the Bank of Ghana, noted that the contribution of rural banks over the years to the economic development of Ghana through their intermediation activities has been remarkable: “As manifested by their impressive deposit mobilisation, credit delivery and social responsibility which have been accompanied by growing public confidence in the rural banking system,” he said.
He pointed out that the recent computerisation of all Rural Community Banks (RCBs) in the country is to position them to compete effectively with other financial institutions.
He said the Bank of Ghana will continue to perform its supervisory function by highlighting the operational lapses, weaknesses or inadequacies in the control systems of banks and enforce the implementation of recommendations to enhance the performances of all (RCBs).
“Loan beneficiaries, particularly the defaulting ones, should reciprocate the bank’s efforts by repaying their loans promptly,” he advised.
Mr. Duke Osam-Duodu, the Acting Managing Director of ARB Apex Bank Limited, in an address read for him pointed out that the Apex Bank, in collaboration with the Danish government through its development wing, has established a new project to assist RCBs in various ways.
He explained that the project is made up of four key components: namely the Rural Finance Wholesale Fund, the Merger Fund; Capacity Building Support for Rural Banking; and Human Resource Development of the Apex Bank.
He mentioned that 130 rural banks with 600 branches/agencies have so far been automated under the ARB Apex Bank’s computerisation programme.
“With a combined total outlet of 620 branches/agencies, it enables transfer of funds from one community to another using the network of RCBs and ARB Apex Bank branches all across the country,” he said.
Mr. Nathaniel Arthur, Board Chairman
By Juliet AGUIAR, Shama
