Consolidated Bank could close down 100 branches

About 100 branches of the new Consolidated Bank face closure, as the newly-formed bank seeks to streamline its operations and downsize to minimise cost and remain profitable.

A source confirmed to the B&FT that a team has began a five-day tour of nine regions to determine which branches will be shut down, and a report is expected by the end of this week.

The bank, which took over some selected assets and liabilities of the five collapsed banks –uniBank, Sovereign, Construction, Beige and Royal banks – currently has 191 branches in nine out of the 10 regions of the country.

As part of the new bank’s business rationalisation programme to reduce its current operational cost of about GH¢60million per month and reduce staff numbers to an acceptable minimum, it has already served notice of its intention to part ways with 1,700 staff. It currently has 3,700 workers.

Already, staff have been asked to re-apply for their jobs. In a memo, management said a link to the recruitment portal will be sent to staff via email, and those interested are required to submit their details and CVs through that portal.

The recruitment exercise commenced on Wednesday, August 29 and ended yesterday, Monday, September 3.

Assurance

Management of the new bank, since the takeover, has moved to assure customers that their deposits are safe. In a statement sent to customers, the bank’s Chief Executive Officer, Daniel Addo, said Consolidated Bank is “adequately capitalised and has enough liquidity to meet all your needs”.

The bank was established on August 1 as an indigenous bank with 100 percent government ownership to absolve depositors from suffering losses following insolvency of the erstwhile banks. The bank is capitalised with GH¢450million – above the BoG’s new minimum capital requirement of GH¢400 million.

It has subsequently issued a bond of GH¢5.76billion to be used as cover for deposits of the five collapsed banks’ customers.