Dumpong Rural Bank scales up deposit mobilization

The Dumpong Rural Bank in Kwahu-Asakraka, mobilized GH¢2,835,967 from its current, savings, time deposit and “susu” savings last year as against GH¢1,879,383 recorded in 2009, an increase of 6.90 percent.

Investment of the bank also recorded a 118.63 per cent increase, from GH¢382,544 in 2009 to GH¢386,361 in the year under review.

The Vice Chairman of the Board of Directors of the bank, Mr David Dankwah Asamoah, was addressing the 16th Annual General Meeting of the bank at Asakraka in the Kwahu-South district.

He said the total assets of the bank also went up from GH¢2.2million in 2009 to GH¢3.2million last year, an increase of 38.40 per cent.

The bank’s net profit before tax recorded a decline of 5.12 per cent from GH¢57,392 in 2009 to GH¢24,607 in the year under review due to the over 60 per cent decline in interest rate on treasury bills and other money market instruments which the bank relied upon to enhance its performance.

Mr Asamoah said the bank granted loans and overdrafts totaling GH¢1,012,400 to its customers in the cottage industries, transportation, construction, agriculture, salaried workers and commerce last year as against GH¢875,155 in 2009 while it was able to mobilize GH¢150,000 as share capital from its share holders.

He advised the share holders to purchase more shares to increase the bank’s capital base since they envisage that the capital requirement of rural banks might soon be reviewed upwards.

In an address read on his behalf, the Managing Director of the ARB APEX Bank, Mr Eric Osei-Bonsu, advised the bank to adopt effective loan monitoring strategies to ensure that all loans granted to its customers were fully recovered in good time to enhance its performance.

He said that the Millennium Development Authority (MiDA) was sponsoring the initial infrastructural development of rural and community banks and they should therefore brace themselves up to meet the maintenance cost of I.C.T infrastructure in terms of software maintenance cost, repairs, depreciation, upgrade and replacement.

Mr Osei-Bonsu advised rural banks to provide quality service to their customers to order to keep them.

Source: GNA