NAARA RURAL BANK HOLDS 19TH AGM
NAARA RURAL BANK HOLDS 19TH AGM
BY PETER ATOGEWE WEDAM
ISD-BOLAGATANGA MUNICIPAL December 19, 2009
The Naara Rural Bank Limited, a rural bank operating in the Upper East region made a net profit after tax of 133,904.85 Ghana Cedis in 2008 as against 77,881.66 Ghana Cedis in 2007. Meanwhile, the bank’s total income stood at 363,932.45 Ghanaian Cedis in year 2007 while the figure appreciated upwards to 597,253.69 in 2008.
These were contained in an audit report presented by Kufuor and Associates, external auditors of the Naara Rural Bank during the bank’s 19th Annual General Meeting [AGM] held at Navrongo in the Kassena-Nankana East district.
The auditors noted that the bank operated in conformity with the banking act of 2004, Act 673 while the financial statements of the bank were also prepared in line with Ghana’s laid down accounting standards.
According to the audit report which covered the year ended 31st December, 2008, the Naara Rural bank has kept proper books of records that reflect the true and fair view of its financial position.
The Board Chairman of the bank, Mr. David Samari in a presentation to shareholders disclosed that the bank recovered 89 per cent of loans in 2008 against 88 per cent in the previous year indicating an insignificant increase of only one per cent. He attributed this to floods and droughts that affected majority of the bank’s customers but added that some recalcitrant defaulters are being sued in the law courts as a last resort to recover loans.
Mr. Samari said though the provision for bad debt increased from GH ₵7,276.69 to GH ₵30,596.16, the bank was able to meet the Bank of Ghana minimum share capital requirements of GH ₵150,000.00 by increasing its capital from 54,490.00 Ghanaian Cedis in 2007 to 169,928.00 Ghanaian cedis in 2008 with a staff strength of only 45 as at December 31, 2008.
He said the Naara Rural bank which was established in 1981 is headquartered in Paga with branches and agencies across the Upper East region. He further noted that the bank has lived up to its social responsibilities as it spent GH ₵1,678 on education, sports, health and culture within its operational zones in 2008 alone.
The Board Chairman thanked various collaborators of the bank and also commended the ARB Apex bank for assisting with staff training and capacity building. On the way forward, he said the bank will become fully automated by the last quarter of 2010 while there are plans to build a suitable banking hall in Navrongo and intensify its share capital mobilisation.
In a keynote address read on his behalf, the Upper East Regional Minister, Mr. Mark Owen Woyongo, noted rural banks are development-oriented institutions since they are purposely established in rural and underdeveloped areas to supplement the efforts of government. He observed that these rural banks mobilise funds at the local levels and distribute these funds by way of loans to people to speed up development.
The Regional Minister commended the Naara Rural bank for supporting this year’s farmers’ day celebration and also assisting students of the Bolgatanga Polytechnic when a fire disaster struck the school. He however urged the bank to introduce new innovative banking products that will endear it to the hearts of prospective customers which will then increase its capital base.
Mr. Woyongo said a bank like the Naara Rural bank should streamline its operations in a way that will favour rural customers by providing them with facilities to promote their businesses and other socio-economic ventures.
He said government through the Ministry of Trade and Industry will create the necessary regulatory framework for private sector investment including the strengthening of rural financial institutions whilst new ones will be assisted to commence operations.
The minister entreated the management and board of the bank to instill discipline in its staff and train them periodically in order for them to able to offer professional advice to customers regarding modern banking products and services.
In a welcome address read for him, the Kassena-Nankana East district chief executive, Honourable Emmanuel Andema called on shareholders to increase their shareholding so as to be able to benefit more from dividend sharing.
Honourbale Andema also urged customers especially parents to take advantage of the Child Trust Account, a new product introduced by the bank which gives parents the opportunity to save for the education of their children. He said since the establishment of Naara Rural bank in 1981, it has proven to be a bank for the people and everything should be done to support the continual existence and development of the bank.
BY PETER ATOGEWE WEDAM
ISD-BOLAGATANGA MUNICIPAL December 19, 2009
The Naara Rural Bank Limited, a rural bank operating in the Upper East region made a net profit after tax of 133,904.85 Ghana Cedis in 2008 as against 77,881.66 Ghana Cedis in 2007. Meanwhile, the bank’s total income stood at 363,932.45 Ghanaian Cedis in year 2007 while the figure appreciated upwards to 597,253.69 in 2008.
These were contained in an audit report presented by Kufuor and Associates, external auditors of the Naara Rural Bank during the bank’s 19th Annual General Meeting [AGM] held at Navrongo in the Kassena-Nankana East district.
The auditors noted that the bank operated in conformity with the banking act of 2004, Act 673 while the financial statements of the bank were also prepared in line with Ghana’s laid down accounting standards.
According to the audit report which covered the year ended 31st December, 2008, the Naara Rural bank has kept proper books of records that reflect the true and fair view of its financial position.
The Board Chairman of the bank, Mr. David Samari in a presentation to shareholders disclosed that the bank recovered 89 per cent of loans in 2008 against 88 per cent in the previous year indicating an insignificant increase of only one per cent. He attributed this to floods and droughts that affected majority of the bank’s customers but added that some recalcitrant defaulters are being sued in the law courts as a last resort to recover loans.
Mr. Samari said though the provision for bad debt increased from GH ₵7,276.69 to GH ₵30,596.16, the bank was able to meet the Bank of Ghana minimum share capital requirements of GH ₵150,000.00 by increasing its capital from 54,490.00 Ghanaian Cedis in 2007 to 169,928.00 Ghanaian cedis in 2008 with a staff strength of only 45 as at December 31, 2008.
He said the Naara Rural bank which was established in 1981 is headquartered in Paga with branches and agencies across the Upper East region. He further noted that the bank has lived up to its social responsibilities as it spent GH ₵1,678 on education, sports, health and culture within its operational zones in 2008 alone.
The Board Chairman thanked various collaborators of the bank and also commended the ARB Apex bank for assisting with staff training and capacity building. On the way forward, he said the bank will become fully automated by the last quarter of 2010 while there are plans to build a suitable banking hall in Navrongo and intensify its share capital mobilisation.
In a keynote address read on his behalf, the Upper East Regional Minister, Mr. Mark Owen Woyongo, noted rural banks are development-oriented institutions since they are purposely established in rural and underdeveloped areas to supplement the efforts of government. He observed that these rural banks mobilise funds at the local levels and distribute these funds by way of loans to people to speed up development.
The Regional Minister commended the Naara Rural bank for supporting this year’s farmers’ day celebration and also assisting students of the Bolgatanga Polytechnic when a fire disaster struck the school. He however urged the bank to introduce new innovative banking products that will endear it to the hearts of prospective customers which will then increase its capital base.
Mr. Woyongo said a bank like the Naara Rural bank should streamline its operations in a way that will favour rural customers by providing them with facilities to promote their businesses and other socio-economic ventures.
He said government through the Ministry of Trade and Industry will create the necessary regulatory framework for private sector investment including the strengthening of rural financial institutions whilst new ones will be assisted to commence operations.
The minister entreated the management and board of the bank to instill discipline in its staff and train them periodically in order for them to able to offer professional advice to customers regarding modern banking products and services.
In a welcome address read for him, the Kassena-Nankana East district chief executive, Honourable Emmanuel Andema called on shareholders to increase their shareholding so as to be able to benefit more from dividend sharing.
Honourbale Andema also urged customers especially parents to take advantage of the Child Trust Account, a new product introduced by the bank which gives parents the opportunity to save for the education of their children. He said since the establishment of Naara Rural bank in 1981, it has proven to be a bank for the people and everything should be done to support the continual existence and development of the bank.
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