Bosomtwe Rural Bank Limited at Kuntanase in the Bosomtwe District of Ashanti Region has recorded GH¢3,579,644 as the banks total share capital as at August 2018; the Business & Financial Times has seen in the bank’s management accounts.
The amount, which far exceeds Bank of Ghana’s minimum threshold, is about 257% more than the minimum GH¢ 1million required by all rural banks currently operating in Ghana.
The Bank recorded a significant growth of its stated capital from GH¢890,394.00 in 2015 to approximately GH¢1.47 million in 2016, which represented an increase of 65%.
In 2017 The Bank’s paid-up capital went up from approximately GH¢ 1.47million in 2016 to a little over GH¢2million, representing an increase of 40% and as at August 2018 from management’s accounts the bank’s stated capital had hit GH¢ 3,579,644 representing a remarkable growth of 74%.
In an exclusive interview, the Chief Executive Officer of the Bank, Francis Agyei Bekoe attributed the consistent growth in the bank’s stated capital to outstanding operational performance over the years; the relatively low price per share coupled with high returns on shareholders’ funds, aggressive share mobilisation exercise as well as the confidence that the public has in the bank.
The CEO further told B&FT that new share purchases solely accounted for this significant increase and from January 2018 up to the closure date of 30th June 2018 the bank had sold 15, 272,812 shares at GH¢ 0.10 pesewas per share at a value of GH¢1,527,281.
”As the head of the management team I have taken share mobilization exercise as one of my core duties and I move out there to bring the investors” he stressed.
With this, the Bank has exceeded the regulator’s minimum capital requirement but speculating that the minimum requirement could be increased at any time now that the minimum capital requirement of universal banks has hit GH¢400million.
The directors of the Bank say they are determined to grow the bank’s minimum share capital to GH¢5million by the end of the year 2019 to avoid any unfortunate situation as has been seen happen recently in the banking industry and also stand ready for any regulatory shocks in the area of capital requirement which has been the heartbeat of the regulator in recent times.
The Bosomtwe Rural Bank Limited was incorporated in November 1981 and authorized to carry on the business of banking under the Banking Act 1970 (Act 339) on 9th December, 1982 with a share capital of Seven hundred and fifty Ghana Cedis (GHS 750.00) raised by 860 Shareholders. In support, the Bank of Ghana contributed additional One hundred and twenty five Ghana Cedis (GHS 125.00) in the form of non-voting redeemable preferences shares. The Bank has since inception achieved remarkable growth.