Mr Hudu Yakubu, the Northern Regional Administrator of the ARB Apex Bank, has advised management of rural banks to set up loan recovery task forces outside their banks to ensure speedy recovery of loans. He explained that the task force when set up would help rural banks to recover all outstanding loans faster to meet their expected share capitals annually.
Mr Yakubu said incentive packages should also be instituted to support the taskforce members who would recover the loans as way of motivation.
Mr Yakubu gave the advice at the weekend in Savelugu in the Savelug/Nanton Municipality during the sixth Annual General Meeting (AGM) of shareholders of the Borimanga Rural Bank Limited.
The meeting was supported by the ARB Apex Bank Limited and other stakeholders to discuss the 2015 and 2016 reports of the Borimanga Rural Bank.
He commended the Board and management of the Bank for their performance during the year under review and urged them to do more to bring funds to the Bank.
Madam Ramatu Alhassan, the Board Chairperson of the Borimanga Rural Bank, in her report said the Bank recorded a loss of GH¢126,762.23 in 2016 as against GH¢35,565.56 profit in 2015.
“This sharp decline in earnings is attributable to a number of factors including write-offs of the MiDA and other non-performing loans and high operational costs,” she said.
She said the Bank has also performed poorly in deposit mobilization within the reporting period, declining by 16.7 per cent from the GH¢2,301,770.88 deposit in 2015.
She, however, encouraged the management to develop effective financial intermediation in order to reach out for more clients for the Bank.
Mr James Kwesi Arko, Manager of ARB Apex Bank Limited, Tamale branch, encouraged the Board and management to step up their efforts in retrieving all loans to improve the non-performing loan situation of the Bank.
He said the District Assembles should be seen supporting the rural banks by channelling their statutory funds to the banks for better advancement and growth.
Mr Arko also appealed to loan beneficiaries to pay back their loans on time for others to benefit.