The Amantin and Kasei Community Bank Limited headquartered at Amantin in the Bono East Region is strategising to consolidate its growth, especially with deposit mobilisation and loan disbursement.
This is in line with the bank’s move to withstand the impact of the COVID-19 pandemic so as to remain relevant in the rural banking space, and support economic growth and development within its catchment area and the country at large.
The bank in 2021 will cautiously reduce advances to poultry farmers and also cut down allocation to operators of private basic schools. These are among many other strategies the bank has resolved to implement in order to reduce loan risk.
The General Manager of Amantin and Kasei Community Bank, Michael Wilberforce Osae, told the B&FT that “rising cost of poultry production is increasingly making the sub-sector a risky and unprofitable venture, hence the proposed reduction of loan portfolio to the farmers. There are uncertainties surrounding the reopening of schools. The new wave of COVID-19 infections could trigger another closure and for that matter, the bank is being meticulous with advances to private school operators.”
Coupled with thorough loan appraisal to all applicants, the bank is expected to reduce its non-performing loans from about 15 percent to 10 percent by the close of the 2021 financial year. In 2020, the bank’s total loan portfolio was GH¢13 million; it has increased this year’s loan portfolio budget to GH¢20 million.
As per the dynamics of the bank’s catchment area, the chunk of the population are into the production of crops like maize, cowpea, groundnut, cassava, watermelon and yam. The General Manager said the bank will continue support those farmers as well as operators of small and micro enterprises, especially women groups.
Despite the devastating impact of COVID-19 on banks’ deposit, Mr. Osae is optimistic that the bank will increase its mobilization. According to him, the impact of the pandemic is currently not gravely felt by most businesses within the catchment area of the bank as compared to the epic centres in the country.
The bank has budgeted to grow its deposit from GH¢44.5 million in 2020 to about GH¢50 million by the close of December 2021. The expansion of the bank Mr. Osae added, will enhance its mobilization to achieve the budget (GH¢50).
In the third quarter of 2020, the bank opened its eighth branch at the Kejetia market, the heart of commerce in the Kumasi Metropolis. The Kejetia market mobilization centre of the bank, added up to the seven other existing branches at Ahwiaa and Ejura in Ashanti, Amantin, Atebubu, Kwame-Danso, Yeji, and Kajaji in the Bono East.
The bank is expected to increase its investment by 50 percent from GH¢10 million to GH¢15 million and grow assets from GH¢49.8 million to GH¢55 million. All other things being equal, the bank’s profit before tax is projected to increase marginally from GH¢950,000 to GH¢1 million.
Mr. Osea stated that the bank has also prioritised to inject more capital into the bank by selling more shares to existing and potential shareholders. As at 31st December 2020, the bank’s share capital stood at GH¢1.6 million. The figure the General Manager noted, has been budgeted to soar to at least GH¢1.6 million.