UNITY RURAL BANK MAKES PROGRESS (PAGE 40)

THE Unity Rural Bank at Ziope in the Adaklu-Anyigbe District in the Volta Region has made progress in five areas, namely deposit mobilisation, total assets, total advances, share capital and total income during the last financial year.
The bank has, however, increased expenditure and high provision for bad and doubtful debts in its operations, hence the reduction of its net profit from GH¢65,189 to GH¢40,150 in the same period which ended on December 31, 2007.
The Chairman of the Board of Directors of the bank, Togbe Binah Lawluvi VI, made this known at the 13th annual general meeting (AGM) of shareholders of the bank at Ziope.
He said the period under review faced an unfavourable environment such as falling interest rates in respect of returns on dwindled investment, increasing fuel prices with attendant rise in transport fares and prices in the domestic market.
Togbe Lawluvi, however, stated that clientele had been steadily increasing over the years, adding that deposit had shot up by 57 per cent while loans and overdrafts had increased by 55 per cent.
He added that the bank spent GH¢2,000 on scholarships last year and also donated 50 bags of cement to the people of Agotime, presented GH¢200 towards the Asogli yam festival.
According to Togbe Lawluvi, the bank donated an amount of GH¢100 towards the Godigbe festival of the people of Aflao and GH¢200 to the Adaklu Anyigbe District Assembly in connection with the 23rd national Farmers Day.
In order to satisfy the requirements laid down by the Bank of Ghana for rural and community banks to raise their minimum capital to GH¢150,000, the shareholders passed a resolution authorising the board of directors to transfer GH¢20,000 from its income surplus account to stated capital account.
Togbe Lawluvi said the downward trend in profits notwithstanding, the directors had proposed a dividend of 15 Gp per share to all shareholders.
In an address read on his behalf, the Managing Director of the ARB Apex Bank Limited, Mr Eric Osei-Bonsu, stated that the performance of rural banks in deposit mobilisation had been good and that had won public confidence in the banks.
He, however, stated that a lot more needed to be done, especially in the institution of internal controls.
Mr Osei-Bonsu advised rural banks to take note of the external environment, especially the rising cost of food, fuel prices and the credit crunch, since they might affect the operations of banks worldwide.
He said they should be flexible to accept proposals on mergers because co-operative mergers could ward off the threat of high competition that many rural banks may face in their operations.