In the wake of the banking crisis and reforms by the regulator as well as industry players, Kintampo Rural Bank Limited at Kintampo in the Brong Ahafo Region has adopted strategic steps to consolidate growth to maintain its relevance in the financial sector.
Key among the bank’s strategies for 2019 is expanding its market share by opening a new branch in Kumasi. All other things being equal, the Kumasi branch of Kintampo Rural Bank will be operational by end of this year’s first quarter. It will add to the bank’s five existing branches in the Brong Ahafo and Northern Regions.
The General Manager Kintampo Rural Bank, Martin Mensah – who disclosed this to B&FT in an interview, said the bank’s move is meant to tap into the rich commercial activities in Kumasi and also make it more convenient for its customers (mostly traders) who do business in the Garden City to access their funds there.
The bank is also redoubling efforts to enhance its services by improving digital and electronic banking infrastructure. To this end, the bank has procured two ATMs to be installed at its Kintampo headquarters and Techiman market branch. As a prelude to operationising the machines, it has started issuing ATM cards to its customers.
These strategies, he indicated, will help the bank widen its deposits net; thus projecting deposits growth of 20.3% by end of the year. The bank closed 2018 with total deposits of GH¢26.73million with the target for this year estimated at GH¢33.37million. “We are very optimistic that the bank will achieve this target; we have done all the necessary feasibility studies, thus justifying our expectations and growth targets,” he said.
On the premise of the projected deposits growth, Mr. Mensah noted that the bank will accordingly give out more loans to microbusiness enterprises and individuals among others. It is estimated that loans and advances within the year will shoot up from GH¢14.78million in 2018 to GH¢17.21million, representing a 20% increase.
He said: “Based on our loans risk assessment, the bulk of our loan portfolio will be given to workers on government’s payroll; GH¢7.37million will be disbursed to about 917 operators of microenterprises under our microfinance scheme, while small-scale farmers of maize, rice and yam are expected to receive a total of GH¢1.14million”.
Due to the unattractive nature of government’s Treasury bills – with a prevailing 91-day rate of about 14.5963% – and the troubles of other private securities, the bank according to the General Manager will not rely much on short-term investments; it has budgeted to invest about GH¢25.1miliion in that sector.
The projected growth in the indicators is also expected to reflect on total assets, which the bank estimates to grow by 18.75% to close 2019 with GH¢48.33million. On top of this, Mr. Mensah said, the bank is sanguine of generating not less than a net profit of GH¢1.69million.