Cal Bank gets shareholders’ approval to transfer GH¢ 50m of income surplus to its stated capital to help meet the new capital requirement set by the Bank of Ghana.
This was at an Emergency General Meeting (EGM) which saw shareholders unilaterally approve of the decision to make such a transfer.
The journey to meeting the stated capital started on May 3 when management of Cal Bank at an annual general meeting sought the approval of shareholders to transfer an amount of GHc250 million from income surplus to stated capital.
This process was completed with the bank’s capital remaining at Ghc350 million. Still being GHc50 million shy of the GHc400 million cedi minimum capital, the bank again had to go back to shareholders for yet another approval.
The Managing Director of the bank, Frank Brako Adu Jnr, said “Now this resolution is passed, we need the Central Bank to agree that the audited results are acceptable and then we register the increase at the Registrar General. Our focus won’t change.
The whole process of capitalization at Cal Bank was that there was no injection of fresh capital. It was monies that were already in the bank that were differently categorized,” he stated.
Cal Bank did not pay any dividend to shareholders for the financial year 2017 as the bank seeks to meet the Bank of Ghana’s (BoG’s) minimum capital requirement.
According to the Bank, this may have a consequence of reducing the funds available for the bank's recapitalization before the December deadline.
Have your say
More Business Headlines
- Report: BoG Governor's MPC briefings and justification for banking reforms
- Goil vs Total: which has the happier shareholders?
- IFS blames high policy rate on gov't borrowing
- Santol Energy meets ISO international standards
- SC Keyboard: StanChart launches first social banking solution
- MTN ends 2019 21 Days of Y’ello Care programme
- Rawlings backs Frimpong Boateng's call for use of organic-based fertilisers
- Gov't injects fresh capital into banks as bond-sale plan flops
- AirtelTigo launches special offer for Hajj pilgrims
- FBNBank appoints Victor Yaw Asante as new MD in Ghana
- Gov’t urged to implement fiscal electronic devices to meet revenue targets
- Lufthansa resumes flights to Cairo, British Airways stays grounded
- Work begins on KIA Terminal 3 to fix flooding
- Mid-Year Review to focus on revenue generation
- GCNet bags third consecutive Trade Facilitation Org. of the Year Award