North Volta Rural Bank joins strong category rating

North Volta Rural Bank (NVRB) Limited has been rated first in the strong category, a position it jointly shared with Bawjiase and Kintampo Rural Banks, a reflection of the Bank’s performance in 2009.

The ARB Apex Bank Limited, the umbrella body of all rural and community banks in Ghana, announced the achievement under the weighted average scoring and composite ratings of 131 Rural and Community Banks (RCB).

Mr Eric OSei-Bonsu, Managing Director of the ARB Apex Bank Limited announced at the 16th Annual General Meeting of NVRB at Guaman in the Jasikan District on Wednesday.

He urged the board, management, and staff of the bank not to be complacent with the achievement, but that they should be dynamic and to develop new financial products, repackage existing ones, and expand outreach in microfinance.

Mr Osei-Bonsu said current indications of growing public confidence in the rural banking industry attested to consistency in registering impressive deposit mobilization and increased share capitals.

He said notwithstanding the above disposition, RCBs must embark on vigorous organisational and operational restructuring, effective deposit mobilization, credit administration and cost control.

“These would enable RCBs to meet the challenges of the changing, competitive and turbulent business environment,” he indicated.

Mr Osei-Bonsu said RCBs needed continuous support from shareholders, the regulatory authorities and customers to perform the crucial function of rural financial intermediation for economic and social development and transformation.

Dr Patrick Ata, Board Chairman of NVRB, in an address read for him, said the bank mobilized a total of GH¢1.674 million in 2009 compared to GH¢1.277 million in 2008, representing 31 percent increase.

He said its investment in Treasury Bills increased to one million Ghana cedis from the GH¢ 620,000 within the period under review.

Dr Ata said total income soared from GH¢473,971 in 2008 to GH¢664,153 in 2009, an increase of 40.13 percent.

He said profits rose to GH¢201,012 in 2009 from GH¢128,785 in 2008, an increase of 56 percent.

Dr Ata appealed to recalcitrant loan defaulters to repay all facilities to avoid a court action to recover overdue loans.

He said the bank was re-strategising to design new products to overcome the shocks emanating from the global economic recession and the impact of domestic pressures on the banking industry.

Mr Ford Henry Kamel, Deputy Minister of Lands and Natural Resources commended the bank for its achievements urging them to be innovative and break new grounds.

He called on RCBs to build good corporate image to ensure loyalty of its clientele and patronage of products.

Source: GNA