The Government of Ghana and its agencies in the banking sector regulatory space have been called upon to take urgent steps to reduce the corporate tax rate and the sustainability levy of 25 percent and five (5) percent respectively as the two remain very high for Rural and Community Banks (RCBs) operating across the country. 

Board Chairman of the NAARA RURAL BANK PLC , Rev. Father Tabase Joseph Aseyire made the call this Thursday in his report to the bank’s 34th Annual General Meeting (AGM) held in Bolgatanga in the Upper East Region. He emphasized the call which he already made back in November 2024 at a similar AGM of the bank in Paga; “we continue to call on government to reduce the corporate tax to at most, 15 percent for RCBs since majority of them are operating in the rural communities in the country”.

Giving more insight into how the bank performed by the year ended 31st December, 2024, Rev. Tabase noted that though the period was characterized by some significant macroeconomic challenges such as inflationary pressures, currency depreciation and fluctuation in interest rates; which affected both the global and local economies, Naara Bank had a smooth sailing through the year. He disclosed that the bank’s deposits rose to 128,344,012 Ghana Cedis by close of 2024 from 78,664,339 Ghana Cedis recorded in 2023 and also increased its investment portfolio from 19,646,307 in 2023 to a high of 39,956,307 at the close of 2024.

Furthermore, Naara Bank’s profitability indicator also hit a rise from 1,641,429 Cedis in 2023 to 4,071,154 Cedis in 2024 indicating a quantum leap of 152.07 percent. Additionally, the stated capital of the bank and total assets both experienced some appreciable rises. The former shot up from 2,700,634 Cedis in 2023 to a 2024 figure of 3,280,913 Cedis whilst the latter rose from 73,710,139 Cedis in 2023 to 130,333,929 Cedis at the close of 2024.

According to the Board Chairman, RCBs together have the most extensive banking network in Ghana with a coverage of 850 network branches, reaching remote and underserved communities providing rural folks and microbusinesses tailor-made financial products such as “susu” savings and loans.

He asked shareholders and customers of the bank to continue to bank with them and have faith that bank will always stand with them in all spheres of life. He revealed that the bank for instance spent 92,500 Ghana Cedis on corporate social responsibility across the areas of health, education, agriculture and other social activities in its operational jurisdictions.

Rev. Tabase hinted that Naara Rural Bank PLC, which is the oldest of its kind in northern Ghana, will hit its 45th anniversary on 18th December, 2025 and expressed gratitude to all individuals and institutions that have helped in all manner of ways to keep the bank’s existence and fluidity through the decades. He pledged the Board and Management will introduce new products, improve branch visibility and expand its digital platforms to give customers the ease of transacting business.

The Upper East Chapter of the Association of Rural Banks, in a statement ready by its Vice President Dr. Atia Kudugu, said all the six (6) rural/community banks operating in the Upper East Region have been given a clean bill of health by regulators to run their operations as none of them had any distress issues.L

Source: Wedambu TV