CAPITAL RURAL BANK AGEM HELD (GRAPHIC NSEMPA, PAGE 15)

By Akwasi Ampratwum-Mensah, Sunyani.

THE year 2008 was a very difficult one in the operations of Capital Rural Bank Limited, a private establishment with its headquarters at Abesim, near Sunyani in the Brong Ahafo Region.
The net profit position of the bank decreased from GH¢166,077 in 2007 to GH¢ 102,286 in 2008, which showed a decline of 36 per cent as against the growth of 24 per cent in 2007.
The management of the bank, however fought very hard to steer affairs towards a successful period of financial transactions and managed to also raise investments in 2008 to GH¢452,978 from GH¢466,695 in 2007, representing an increase of 18 per cent.
The board of directors also proposed a 4Gp per share in respect of the 2008 financial year for approval by the shareholders and promised to raise it in the subsequent year.
Dr E. Yaw Peprah-Agyemang, the Chairman of the Board, who made this statement at the 4th annual General Meeting (AGM) of the bank, indicated that shareholders funds also increased from GH¢293,235 in 2007 to GH¢363,064 in 2008, while total income jumped from GH¢568,234 in 2007 to GH¢670,685 in 2008.
He further disclosed that, total deposits of the bank, amounted to GH¢2,273,765 as against GH¢1,401,970 recorded in 2007, indicating an increase of 62 per cent, which was above the 49 per cent growth in 2007, and total credits went up from GH¢1,527,713 in 2007 to GH¢1,872,536, which reflected an increase of 23 per cent, less than the 56 per cent success chalked in the previous year.
According to the chairman, the bank had come a long way from its humble beginnings and could now boast of an asset base of about GH¢3million under the management in three customer friendly, air- conditioned and fully computerised offices at Abesim, near Sunyani.
He announced that, the bank had more than met the new minimum capital requirement of GH¢150,000, without which a bank could neither pay dividends nor open new agencies. He explianed that although the bank was one of the youngest rural banks in Ghana, it was one of the few rural banks in the country to have met that requirement.
Dr Peprah-Agyemang indicated that, the bank intended to implement a five-year strategic plan from 2009-2013, that aims at radically expanding the fortunes of customers and shareholders.
He explained that the plan envisaged a near ten-fold growth of deposits and assets by the end of 2013 and that it was planned to raise stated capital and shareholder funds to GH¢500,000 and GH¢3,000,000 respectively, the results which were expected to be achieved through the addition of several agencies and substantial growth in the size of operations at all offices.
The Board Chairman pointed out that, much as the bank was capable of contributing towards uplifting people within its operational area, and Ghana as a whole, it was imperative that all shareholders fulfilled their part of the bargain so that the bank could become an asset for all.
“I am, therefore, using this opportunity to appeal politely and respectfully to our recalcitrant debtors, to make the necessary arrangements towards meeting their unfulfilled debt repayment obligations, by April 30, 2009 or face unpleasant consequences,” he stated.
He emphasised that the board together with the management and staff of the bank would continue to make the best efforts to ensure that the bank became the more efficient and effective so as to produce enduring and meaningful impacts in the lives of the people in its catchment area.
To achieve this objective, Dr Peprah-Agyemang said the bank would intensify the education of its cherished customers to make them more knowledgeable and productive, adding, “Our customer training programmes shall focus on the areas of business and financial management, as well as the development of long-term saving culture.”
Accordingly, the chairman indicated that, the bank would commit more resources to improve education and publicity on savings for and by children (Capital Education Accounts) as well as pension savings for people in the informal sector (Capital Pension Accounts) which he said, would assist customers to plan and manage their finances better for now and the future, thereby, ensuring a lasting, mutually beneficial relationship with the bank.
Dr Peprah-Agyemang pointed out that, the bank had continued with the implementation of its scholarship scheme for needy brilliant children and deserving students for the pursuit of tertiary educational programmes, which he said, four students in public universities, had enjoyed for the past two years.
For the 2009/10 academic year, the board chairman intimated that, three scholarships worth GH¢1,000 each would be offered and that it was opened to children and wards of all shareholders and customers of the bank who were not above 25 years of age.