uniBank has given the assurance that Agric Development Bank (adb) will retain its focus on agricultural financing despite the acquisition of controlling stake by the former.
It is estimated that ADB is currently responsible for about 85% of institutional credit to the agricultural sector, an important backbone of Ghana’s economy.
But the bank established in 1965 as a government-owned financial institution is set for private control following unibank’s aquistion of 51% of the bank’s stake.
A consortium of financial institutions that control the majority shares in adb, have pledged their proceeds, entitlement and voting rights to leading local financial institution, uniBank.
The consortium is led by Belstar Capital–a turnkey project finance and implementation institution–also includes Starmount Development Company Limited, EDC Investments Limited and SIC-FSL.
Executive Director of uniBank, Clifford Mettle, told Joy FM Wednesday, management of the bank will also continue to remain at the helm of affairs until a decision is reached by the new owners.
“The Management is performing very well and we don’t envisage any change in management for now,” Clifford Mettle told Super Morning Show host, Daniel Dadzie shortly after news broke of the takeover.
“This is a very strategic bank and you’ll need people who will drive it and if you have these people at the helm of affairs, why not [keep them],” the Executive Director added.
The declaration follows a decision by the uniBank (Ghana) Limited, one of the 35 commercial banks licensed to operate in Ghana, is an indigenous private bank in the West African country.
The acquisition, Mr. Mettle explained, is “very strategic” and will inure to the benefit of both institutions in their pursuit of growing the national agenda.
“For now adb will remain and uniBank will remain…I don’t think we’d have to push for a name change immediately.
“We are doing that because we think it will inure to our benefit and we think that it will better pursue the growth agenda that we are pursuing,” he maintained.
He added that management of both banks are scheduled to meet Wednesday to fine tune some critical decisions following the takeover.