Otuasekan Rural Bank Limited at Kofiase in the Sekyere West District of Ashanti Region has recorded a total share capital of approximately GH¢2.37 million as at the close of business on July 31, 2019.
The amount, which far exceeds Bank of Ghana’s minimum threshold, is 130% more than the minimum GH¢ 1million mandated by all rural banks to achieve by February 2020.
The Bank recorded an impressive growth in its stated capital from approximately GH¢ 1.48million in 2016 to a little over GH¢1.75 million in 2017, representing an increase of 19.06% and as at July 31, 2019 the bank’s stated capital had hit GH¢ 2.369, 966.5.
The General Manager, John de-Graft Owusu told Business & Financial Times in an exclusive interview that the bank began an aggressive share mobilization exercise to raise the share capital to this current level with the primary objective to always stand ready should the regulator decide to come up with any upward review.
According to the General Manager, the demand for the Bank’s shares has gone up significantly due to its outstanding performance for the past three years. The relatively low price per share coupled with high returns on shareholders’ funds has also contributed to the high demand for the Bank’s shares.
The directors of the Bank say they are determined to grow the bank’s minimum share capital to an appreciable level by 2021 to avoid any unfortunate situation as has been seen happen recently in the banking industry.
Otuasekan Rural Bank currently has an asset base of GH¢86.6million as at July 2019 with deposits of a little over GH¢71.9million as at July 31, 2019. The Bank’s net worth is currently about GH¢ 12.5million and has given out loans and advances to the tune of GH¢27.7million.
The Bank currently operates nine branches scattered within the Kumasi Metropolis and its adjoining districts. They are, Kofiase, Mampong, Ejura and Nkenkesu. The rest are Abofour, Maakro, Sepe, Suame and Maakro.