The amount, which far exceeds the Bank of Ghana’s minimum threshold, is about 500 per cent more than the minimum GH¢1 million mandated for all rural banks to achieve by February 2020.

This was contained in a release issued by the bank in Accra on Friday.

It indicated that the bank had recorded consistent growth in its stated capital since 2016 to date and had devised a strategy to realise GH¢10 million in five years, which started this year.

In 2017 the bank’s paid-up capital went up from approximately GH¢1.8 million in 2016 to a little over GH¢2.2 million, representing an increase of 27 per cent and in 2018 recorded a share capital of approximately GH¢3 million.

At the end of second quarter in 2019, from management’s accounts, the bank’s stated capital had hit about GH¢6 million, representing a remarkable growth of 91 per cent.

Purchasing more shares

he release also pointed out that the shareholders of the bank had unanimously agreed to the board’s proposition and resolved to use the 2018 declared dividend to purchase more shares.

This resulted in an increase in stated capital of the bank by GH¢990,000 and increase in individual shareholdings by the equivalents of dividends entitlements.

The shareholders, according to the release, also agreed to the board’s proposition to transfer an amount of a little over GH¢1.6 million from reserves (Income Surplus) to Stated Capital to be distributed to existing shareholders in the form of bonus shares.

That, it said, brought it to a total of 8,251,700 bonus shares issued to shareholders.

According to the release, this implied that for every two shares held, one additional share had been issued for free and 50 per cent bonus pay-out for two to three years or until such a time that the bank is able to reach the GH¢10 million stated capital target.

By this, the board and management have taken the opportunity to appreciate the shareholders indispensable contribution to capitalise the bank particularly around this time that the banking industry is confronted with liquidity challenges.  

Bank’s assets

The release said the Amenfiman Rural Bank, at the end of 2018 financial year, had an asset base of GH¢223 million, with total deposits of a little over GH¢200 million in first quarter 2019.

The bank, which was originally registered to operate in the Western Region, was the first rural bank that was permitted by the Bank of Ghana to open branches outside its home region.