Wednesday, January 4, 2012

ADB to be listed on GSE in 2012

Agricultural Development Bank (ADB), is to be listed on the Ghana Stock Exchange (GSE) before the middle of next year to raise additional reserve to deepen the banks operations, Alhaji Ibrahim Adams, Board Chairman of ADB, has revealed.

“ADB going public next year will also enable the bank to finance capital intensive businesses in all sectors of Ghanaian economy including the oil and gas sector.

Alhaji Adams speaking at the Bank’s end of year party held in Accra disclosed that the bank is in discussion with government and currently awaiting approval to be listed on the GSE to raise capital for further expansion projects.

"We are now waiting for a go ahead from the government to do so". "We are not selling the bank, but rather offering part of its shares to Ghanaians.”

“The bank is committed to building a strong customer-oriented bank run by knowledgeable and well-motivated staff, and which provides profitable financial intermediation and related services for a sustained and diversified agricultural and rural development.”

ADB, a leading universal bank, which provides full range of banking products and services in retail, commercial, corporate and investment banking, was set up in 1965 by Act 286, it is wholly publicly-owned with government owing 52% of the shareholding, while the remaining 48% is being held by the Financial Investment Trust on behalf of the Bank of Ghana.

Mr. Stephen Kpordzih, the Managing Director of the Bank assured customers of improved services next year aimed at making banking more exciting and relevant.

He said the bank had performed creditably during the year and fulfilled its promise of improving its service delivery and that the effort has been acknowledged through several awards the bank won

“The enhanced performance of ADB has been acknowledged in several awards including CIMG Bank of the Year, Africa Investor Agribusiness Investment Award, and an International Award for Business Excellence, which is a new Millennium Award for Banking Services,” he said.

He said the bank opened 11 new branches as part of its expansion project; refurbished old branches; introduced a new range of products and new channels of transaction, and computerised its systems of banking, adding that these had helped to improve its uptime in credit delivery.

Mr Kpordzih also indicated that the bank now had a VISA platform which was in operation but expected to be formally launched next year to make the bank’s services easily accessible to its customers.

He assured customers of the bank’s efforts to enhance its service delivery in all areas of its operation in the coming year despite challenges the bank is currently facing.

The bank continues to remain the number one financier in the agricultural sector. This is evidenced in the bank's yearly performances. In 2010, ADB lending to the agricultural sector climbed to GH ¢174.2 million, as against GH ¢105.3 million in 2009, representing an increase of 64.5%.

This development resulted into an increase in the share of agriculture of the total credit portfolio from 24.1% to 28.9%, depicting a purposeful channeling of credit to the agricultural portfolio of the bank.

To further consolidate its position as the premier financial institution in agricultural lending, ADB's total loan approvals for agric purposes made the first half of 2011, increased by nearly 70% as compared with the same period last year.

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