The Bawku East Small-Scale Farmers (BESSFA) Rural Bank bagged about 103, 800 Ghana cedis profit before tax last fiscal year. The figure represents 83.5 per cent increase on 2006 figures.

The impressive returns were made in spite of the disastrous effects of last year's floods and conflict on the local economy of the Bawku traditional area.

In 2006, the bank made about 56,700 Ghana cedis profit. It recorded a total asset of GH?3,324,339 last year, as against GH?2,137,397 in 2006.

Current investments stand at 950,000 Ghana cedis, up from 498,626 Ghana cedis in 2006. Loans and overdrafts it disbursed increased from 510,728 in 2006 to 820,454 Ghana cedis last year. Deposits rose significantly from 1,455,488 to 1,854,589 during the same fiscal years.

The Board Chairman of the Bank, Mr. Solomon Atigah, announced these at the Bank?s 17th annual general meeting (AGM) at Garu, where it is headquartered and said defaults in repayment of loans by customers were quite substantial, compelling the bank to declare about 200,000 Ghana cedis as bad and doubtful debts.

"This has adversely affected the general performance of the bank this current year," he said.

He indicated that following the difficulties involved in recovering loans, the Board met to decide on some strategic means of recovery and said it basically included the prosecution of defaulters, adding that the bank would soon descend on them to recover the monies involved.

. Mr. Atigah stressed the need for beneficiaries of loans and overdrafts to pay back on time to enable others access the facilities and said "remember you need more than just one cycle of loan to move out of the poverty line."

He said the bank takes interest in the social, economic and physical development of its catchments and so has contributed in diverse ways in this direction as part of its corporate social responsibility. He mentioned the payment for hiring of equipment to rehabilitate the Garu-Kikparigu-Bawku road, presentation of bicycles towards this year's farmers' day celebration and support for educational institutions.

The Upper East Regional Minister, Mr. Alhassan Samari, who was special guest, urged banking institutions in the region to go beyond the traditional banking services and consider the level of deprivation and poverty in the region' so that they could play leading roles in meeting the social and economic needs of the people.

He said even though there were stringent regulations governing the operations of rural banks in the country, they should endeavour to be flexible in their dealings with their customers especially those in rural communities to make the rationale in setting up rural banks feasible and make their services attractive.

An official of APEX Bank, Mr. George Annor, called on shareholders of the bank to be vigilant by showing interest in its activities, making constructive criticisms as well as increasing their shareholdings.

Mr. Annor advised management of the bank to adhere strictly to the rules and regulations regarding their operations and said they should in addition demonstrate high level of integrity by jealously ensuring that individual staffs that have made up their minds to use the bank as moneymaking platform do not succeed.