Bosomtwe Rural Bank share capital hits GH¢3.58m
Bosomtwe Rural Bank Limited at Kuntanase in the Bosomtwe District of the Ashanti Region saw the bank’s capital increase to GH¢3,579,644 as at August 2018.
This represents a remarkable growth of 74 per cent over the same period last year.
The amount, which far exceeds the Bank of Ghana’s minimum threshold, is about 257 per cent more than the minimum GH¢ 1million required by all rural banks currently operating in Ghana.
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 per cent.
In an interview, the Chief Executive Officer of the bank, Mr Francis Agyei Bekoe, 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 had in the bank.
The CEO further told the Daily Graphic that new share purchases solely accounted for the increase and from January 2018 up to the closure date of June 30, 2018, the bank had sold 15, 272,812 shares at GH¢ 0.10 pesewas per share at a value of GH¢1,527,281.
”As the head of the management team, I have taken shares mobilisation exercise as one of my core duties and I move out there to bring the investors” he stressed.
With this, the bank has exceeded the regulator’s minimum capital requirement but speculating that the minimum requirement could be increased at any time now that the minimum capital requirement of universal banks has hit GH¢400million.
The directors of the bank say they are determined to grow the bank’s minimum share capital to GH¢5 million by the end of the year 2019 to avoid any unfortunate situation as has happened recently in the banking industry and also stand ready for any regulatory shocks in the area of capital requirement which has been the heartbeat of the regulator in recent times.