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Naara Rural Bank Increases Profit

2007-12-20 22:41:10
This article has been read 872 times.

Ghana Cedi
The Naara Rural Bank in the Kassena Nankana District last year made a net profit of 786.8 million Cedis, an increase of 52.30 per cent from that of 2005 which was 516.6 million Cedis.

It also recorded an increase in its deposits by 44.5 per cent, from 10.1 billion Cedis in 2005 to 14.6 billion in 2006 and an increase of 36.3 per cent in total assets from 15.7 billion in 2005 to 21.4 billion in 2006.

Mr. Peter K. Aloah, Chairman of the Board of Directors of the Bank said this during the 17th Annual General Meeting of Shareholders held at Navrongo in the Upper East Region.

He said despite the good performance of the Bank, only eight per cent of its total assets belonged to shareholders while 92 per cent was in the hands of non shareholders, “this position is not good enough for the effective operations of the Bank”, he said.

He appealed to the shareholders and the District Assembly to increase their shareholdings and called on the general public to buy shares from the Bank so as to strengthen it and make it more viable to serve the people well.

Mr. Aloah said the Bank considered microfinance as a tool for poverty reduction and had invested three billion cedis of its own funds into it to help small-scale businesses grow.

He said however, that the Bank had since last year stopped disbursing loans under the government’s Poverty Alleviation Fund because of poor loan recovery, which could adversely affect the Bank.

He said the Bank had taken various steps to make defaulters pay but the response had so far not been good and as a last resort, it intended to broadcast names of defaulters on the local FM station.

Mr. Joseph Ayamga, Director of the Bank explained that there had always been the wrong conception that people who benefited from Government funds did not have to pay back and so it was really difficult to convince the people to pay so others could benefit.

He expressed disappointment that people shied away from the Community Based Rural Development Project (CBRDP), a Government intervention aimed at raising incomes and quality of life of beneficiaries by improving upon their productive assets, rural infrastructure and access to key support services.

Mr. Ayamga said the project, which gives out loans demands that beneficiaries form groups and have no outstanding debts before they could qualify for it and that was the problem because groups had debts they had not paid back for a long time.

He said only 32 million cedis of the project money had been accessed, adding that the Bank had however, started an intensive sensitization to create awareness of the project so more customers could access the facility.

Mrs. Agnes Chigabatia, Upper East Deputy Regional Minister, called on Banking Institutions in the Region to play a leading role in the general socio-economic development of the people and not only concern themselves with providing only traditional banking services.

“I hope the Naara Rural Bank has streamlined its operations in such a way that it favours its rural customers by providing them with facilities to promote and expand their businesses and other economic ventures”, she said.

She urged the Bank to consider increasing its support to farmers, saying, “We will be failing in our duty if we fail to address the government’s policy on poverty alleviation in the communities”


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