Unibank moves to add over GHS700m to its capital


One of Ghana’s most stable indigenous banks, Unibank, is to obtain a colossal amount of over GHS700 million.

The amount, which will significantly shore up the bank’s capital when the Central Bank approves the recapitalisation programme it is embarking on, will peg the bank’s assets at almost a billion cedis.

The over GHS700 million is coming from a local financial consortium led by Belstar Capital.

Sources close to the regulator of the banking sector, the Bank of Ghana, say a proposal has been received in respect of the transaction and is being studied.

Sources say the deal is expected to be closed very soon.

The transaction comes at a time the Central Bank is expecting banks in Ghana to meet the enhanced minimum capital requirement of GHS400 million.

With this amount, Unibank, which was recently adjudged the Best Practising Corporate Social Responsibility Company at the Ghana Club 100 awards, is set to play amongst the bigshots in the banking sector.

The Best Bank in Long term Finance – an honour conferred on it at the 16th Ghana Banking Awards, believes the financial status will catapult it into the top ten banks in the country, and help create a comfortable buffer between the GHS400 million capital requirement and its actual asset base.

Business mogul cum politician, Papa Kwesi Nduom, who runs the GN Bank, has had cause to complain about the new capital requirement.

The GHS400 million represents a quantum leap from the previous minimum requirement of GHS120 million.

Financial analysts believe the wholly owned Ghanaian bank is in a strengthened position to continue to give its customers consistent and reliable banking services.

The bank, which early this year swept three other awards at the banking awards including 1st Runner-up Best Growing Bank, 2nd Runner-up Best Bank in Customer Care, 2nd Runner-up Best Bank in Customer Advisory Services, can continue to give relief to the country’s growth through its innovative products which receive praise annually.