Share capital hits GH¢3.8m in Bosomtwe Rural Bank

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Bosomtwe Rural Bank Limited at Kuntanase in the Bosomtwe the District of Ashanti Region has recorded approximately GH¢3.8million as the bank’s total share capital as at close of business recently.

The amount, which far exceeds Bank of Ghana’s minimum threshold, is about 280% more than the minimum GH¢ 1million required by all rural banks to be achieved by February 2020.

Checks at the Regional Chapter of the Association of Rural Banks reveal that Bosomtwe Rural Bank holds the highest share capital followed by Adansi Rural Bank with a little over GH¢3.7 million and Atwima Kwanwoma Rural Bank coming third with approximately GH¢3.2 million

The Bank has recorded consistent growth in its stated capital since 2015 to date and has been mindful of making the conscious effort to grow its capital.

Through this, the board and management are taking this opportunity to appreciate the shareholders of the bank for their indispensable contribution in capitalising the bank particularly around this time the banking industry is confronted with liquidity challenges.  

Subsequently, the Bank recorded a significant growth of its stated capital from GH¢890,394.00 in 2015 to approximately GH¢1.47 million in 2016, which represented an increase of 65%.

Also, in 2017 the Bank’s paid-up capital went up from approximately GH¢ 1.47million in 2016 to a little over GH¢2million, representing an increase of 40% and in 2018 recorded a share capital of approximately GH¢3.7million.

The CEO of the Bank, Francis Agyei Bekoe, in an exclusive interview, attributed the consistent growth in the bank’s stated capital to outstanding operational performance over the years; the relatively low price per share coupled with high returns on shareholders’ funds, aggressive share mobilisation exercise as well as the confidence the public has in the bank.

He stressed that “as the head of the management team I have taken share mobilization exercise as one of my core duties and I move out there to bring the investors.”

The directors of the Bank say they are determined to grow the bank’s minimum share capital to GH¢6million by the end of the year 2022 to avoid any unfortunate situation as has happened recently in the banking industry.

According to them, it makes the bank ready for any regulatory shocks in the area of capital requirement which has been the major concern of the regulator in recent times.

Bosomtwe Rural Bank currently has an asset base of GH¢90,078,709 with deposits of GH¢71,902,125 as at July 31, 2019.

Similarly, the Bank currently operates twelve branches scattered within the Kumasi Metropolis and the adjoining districts. They are Kuntanase, Aputuogya, Jachie, Atonsu Bokro, Atonsu Agogo and Kokofu. The rest are Afia Kobi Market, Suame Magazine, Edwenase Market, Trede, Ahema Kokoben and Abuakwa.

The Bosomtwe Rural Bank Limited was incorporated in Ghana in November 1981 and authorized to carry on the business of banking under the Banking Act 1970 (Act 339) on 9th December, 1982 with a share capital of Seven hundred and fifty Ghana Cedis (GH¢ 750.00) raised by 860 Shareholders.

In support, the Bank of Ghana contributed additional GH¢125.00 in the form of non-voting redeemable preferences shares. The Bank has since inception achieved remarkable growth.

 source: Joybusiness


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