Shareholders of Agricultural Development Bank PLC (ADB) have approved a record capital injection of GH₵2 billion to fortify the bank's operations.
This approval empowers the bank to raise additional equity capital through a renounceable rights issue.
The decision was reached at the bank's Extra-Ordinary General Meeting of Shareholders in Accra, where shareholders also approved the appointment of new external auditors for the bank.
Daasebre Akuamoah Agyapong II, Board Chairman, highlighted the bank's obligation to maintain the prescribed minimum paid-up capital, as per Section 28 (1) of the Bank and Specialized Deposit-Taking Institution Act 2016 (Act 930). The current minimum paid-up capital set by the Bank of Ghana is GH₵400 million.
“The recent adverse economic events, including the DDEP and impairments in the loan book of the bank, impacted the minimum paid-up capital of the bank,” added Daasebre Agyapong.
In the third quarter, the bank reported growth in net interest income and operating income, reaching GH₵397 million and GH₵621 million, respectively.
Daasebre Akuamoah Agyapong II expressed the commitment of the management and staff to support the bank in pursuing its vision as the people's bank, leveraging the transformative power of agribusiness for wealth creation.
The emphasis is also on growing a strong customer-centric bank, providing profitable and diversified financial services for sustained contributions to agricultural development.
ADB PLC is listed on the Ghana Stock Exchange, with the majority of its shares being owned by the government.