Shareholders of Adansi Rural Bank angry with loan defaulters
Shareholders of the Adansi Rural Bank have expressed indignation over the reluctance of customers to repay loans granted them by the Bank totalling more than GH¢302,000.
At their 19th annual general meeting (AGM) at Fomena-Adansi in the Ashanti Region, the shareholders maintained that such credit facility was a revolving fund and that people’s refusal to pay back loans would ruin the chances of other prospective beneficiaries.
They therefore urged the bank to adopt aggressive measures to retrieve those monies to enhance the bank’s capital base.
Mr Ahmad K. Boakye, Board Chairman of the Bank, in his report, announced that loan beneficiaries owed the bank to the tune of GH¢302,505.00 as at 31st December, 2008.
Mr. Boakye said despite the numerous challenges, which include the upward adjustments in crude oil prices, the Bank recorded a profit of GH¢268,512.00 before tax as against GH¢233,742.00 recorded in 2007, representing a 14.9 per cent increase.
The Chairman said the stated capital of the bank also increased from GH¢112,072 in 2007 to GH¢172,940 in 2008, representing an increase of 54.0 per cent, in addition to meeting the Bank of Ghana’s capital requirement of GH¢150,000.
On Akuafo cheque purchases, Mr. Boakye said the performance had declined as total purchases for the year was GH¢4.3 million, adding most cocoa farmers these days preferred cash sales to the use of cheques.
Alhaji Lateef Majduob, Adansi North District Chief Executive (DCE) encouraged the bank to define a new direction in the context of changing economic and technological environments, to enable it to remain in business and to realize its corporate objectives.
He further encouraged the bank to make its banking hours more flexible for the benefit of its numerous customers.
The DCE announced that the Assembly, in collaboration with the Rural Enterprise Project, was offering management and technical training to medium and small-scale entrepreneurs in the district, and that the assembly was prepared to serve as guarantors for beneficiaries to source loans from the bank.