The Nkoranman Rural Bank at Seikwa in the Tain district of Bono Region has posted satisfactory gains in its performance indicators to consolidate year-on-year-on growth.
Amid the myriad of operational challenges that stemmed from the troubled macroeconomic environment, largely because of the coronavirus pandemic and the financial sector clean-up by the regulators, the bank remained resilient during the 2019 and 2020 financial years under review.
The bank’s total deposits between 2019 and 2020 increased significantly by 44.50 percent. It closed the 2020 financial year with a total deposit of a little over GH¢10.59million as against GH¢7.33million in 2019.
The growth in deposits reflected on the assets base of the bank within the periods under consideration. Assets appreciated by 30.60 percent from GH¢9.03million to GH¢11.80million. In a similar fashion, loans and advances went up from GH¢3.93million in 2019 to GH¢4.59million in 2020, representing a 16.90 percent change.
On the other hand, short-term investments of the bank witnessed a satisfactory increase of 19.70 percent as the figure soared from GH¢3.91million to GH¢4.59 million, while shares’ capital went up marginally (3.60%), pegging at GH¢1,100,660 – which is slightly above the GH¢1milion minimum capital requirement.
The Board Chairperson of Nkoranman Rural Bank, Victoria Konadu, announced these performances during the 23rd and 24th annual general meeting held virtually at Seikwa. She said the unfriendly happenings during years under review however caused the bank’s income to drop, thus accounting for losses of GH¢313,401 and GH¢272,660 in 2019 and 2020 respectively.
Ms. Konadu stated that the bank will adopt innovative strategies to improve the gains in order to boost income; indicating that in the midst of the challenges, the bank has crafted strategies to deal with them in order to continuously improve upon the performances.
She said: “The bank is leveraging the values of ICT in today’s competitive business environment to deliver banking services and products to its customers. In 2021, the bank plans to execute activities such as ATM installation, efficient pricing of deposits and loans, improved credit appraisal and monitoring, and low cost deposit mobilisation.”
Commenting on corporate social responsibility, the Board Chairperson recounted support the bank advanced to society in areas like education, health and sanitation. She said the bank among others spent GH¢15,654 on sanitary items during the heat of COVID-19 outbreak, donated 50 bags of cement to Nkoranman SHS and aided painting of the school as well.
The Sunyani Branch Manager of the ARB Apex Bank, Reuben Adamtey – who represented the Apex Bank Managing Director, Kojo Mattah, said the chunk of funds that rural and community banks (RCBs) had locked up with defunct investment houses has been released, adding: “Attempts are also being made by ARB Apex Bank and the Bank of Ghana to get all remaining locked up funds released to help liquidity management”.
He cautioned RCBs to be mindful of the investment options they invest in, saying: “This is not the time for high risk decision-making with customers’ funds”.
