FIASEMAN RURAL BANK HOLDS GENERAL MEETING (PAGE 20, NOV 3)

THE Fiaseman Rural Bank Limited at Bogoso in the Prestea-Huni Valley District in the Western Region granted GH¢1,726,574 as loans and advances to its customers last year, as against GH¢1,378,873 granted in 2007.
Out of the amount, GH¢178,774 went into agriculture, while GH¢15,542 went into cottage industry with GH¢ 347, 031 going into trading.
A total amount of GH¢2,587 went into the transport sector, while GH¢1,182,640 went into other commercial activities.
The bank proposed an amount of GH¢44,275.44 to be paid as dividend for 2008, even though the bank posted a pre-tax profit of GH¢187,009 for the year, as against the profit of GH¢202, 359.18.
The proposed dividend forms 27 per cent of the after tax profit for 2008.
Total loans granted under the microfinance scheme by the bank in 2008 amounted to GH¢555,752, as against the 2007 figure of GH¢369,842, representing a 50 per cent increase.
Beneficiaries of the loan facility were often traders, street vendors, service providers and artisans who operated micro enterprises in the bank’s catchment area.
The Chairman of the Board of Directors of the bank, Osagyefo Amanfo Edu, announced these at the 21st annual general meeting of shareholders of the bank at Bogoso.
He said the bank's total deposit grew from GH¢2,701,239.37 in 2007 to GH¢3,458,434.80 in 2008, representing a percentage growth of 28 per cent.
He attributed the achievements to aggressive deposit mobilisation drive.
He said shareholders’ funds grew from GH¢653, 717 in 2007 to GH¢780,024 in 2008, indicating a growth of 16.2 per cent.
Osagyefo Edu said the Apex Link Domestic Money Transfer Product was highly patronised during the year under review, adding that a total amount of GH¢749,606 was transferred through that medium to various beneficiaries.
He said the Western Union Money Transfer was introduced to the bank in May, 2008 and as of December 31, the same year, it had paid GH¢51, 993.78 to various clients.
Osagyefo Edu said the bank spent GH¢3,900 on its corporate social responsibilities, saying, “In the ensuing year, we programme to use a percentage of post tax profit on social responsibility with much emphasise on education”.
In a speech read on behalf of the Managing Director of ARB Apex Bank Limited, Mr Eric Osei-Bonsu, he stated that diversification of products and creation of niche markets were important to reduce risk and to take new opportunities.
He said by niche markets, he meant creation of products that would enter the minds and capture the attention of people whose loyalty towards the product could be assured.
Mr Osei-Bonsu said rural and community banks within a particular catchment area could team up to develop that kind of product to strengthen this niche market so that the benefits could be shared.
He advised the rural banks to develop a marketing strategy that would go where the clients were stationed and speak their language.
Mr Osei-Bonsu stated that banks should be able to research into what financial services were being offered by competitors in and around their geographical areas of operation.
That, he said, would help them adopt their own competitive strategies for differentiation and positioning of their services.
“Research has shown that microfinance institutions, including rural banks, pay little attention to promotion of products and services because they are deemed expensive,” he said, adding, “But you must now consider creating or strengthening your marketing departments to ensure revenue growth, customer satisfaction and financial sustainability”.