Shareholders of the Agricultural Development Bank (ADB) PLC have granted approval for a record capital injection of Two Billion Ghana Cedis (GHS2 Billion) into the Bank to strengthen its operations.
The resolution was passed at an Extraordinary General Meeting (EGM) of the shareholders on Thursday, December 28, 2023, at the Accra Financial Centre. The resolution was in furtherance of the Bank’s intention to raise additional capital to shore up its minimum paid-up capital which has been adversely affected by factors including the impact of the recent Domestic Debt Exchange Programme (DDEP) and challenged performance of the banking sector over the past two years, among others.
The resolution received an overwhelming endorsement, without any opposition or abstention. The approval has now empowered the Bank to raise the additional equity capital of up to GHS2 billion through a renounceable rights issue on such terms (including the share price, the number of offer shares, allotment, and other modalities).
Need for Additional Capital
Speaking at the EGM, the Board Chairman of the Bank, Daasebre Akuamoah Agyapong II, indicated that per Section 28(1) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930), ADB is required to maintain the prescribed minimum paid-up capital (unimpaired by losses including accumulating losses, or other adjustments).
“The current minimum paid-up capital prescribed by the Bank of Ghana for banks, including ADB, is GHS 400 million,” he added.
However, Daasebre Akuamoah Agyapong II noted that the recent adverse economic events (including the DDEP and impairments in the loan book of the Bank) unfavorably impacted the minimum paid-up capital of the Bank.
This, the Board Chairman said, birthed the Bank’s intention to raise additional capital to shore up its minimum paid-up capital.
Daasebre Akuamoah Agyapong II, highlighted the crucial role this capital infusion would play in advancing the mandate of the Bank in promoting socio-economic development through agriculture and more.

The Bank’s third-quarter results showed growth in Net Interest Income and Operating Income of GHS 397 million and GHS 621 million respectively.
Although the Bank reported a decline in net profit at the end of Q3 2023 largely due to phase II of the DDEP and impairments, deposits from customers increased significantly to GHS 7.7 billion, from GHS 5.2 billion in 2022 Q3. This is mainly a result of the Bank’s ability to achieve its deposit target, by mobilizing the GHS2.5 billion additional deposits from customers.
The Bank’s total assets also grew significantly from GHS 7.1 billion in Q3 2022, to GHS 9.3 billion in Q3 2023, indicating a substantial asset increase or growth of GHS 2.2 billion.
ADB’s liabilities also saw significant growth to GHS 8.6 billion in Q3 2023, compared to GHS 6.1 billion in Q3 2022.
Outlook of the Bank, following the capital injection
The Bank’s shareholders overwhelmingly voted in favour of all the resolutions tabled at the EGM, indicating their enthusiastic willingness to recapitalize the Bank to enable it continue to play its strategic role in agricultural development in Ghana.
In his remarks following the EGM, the Managing Director of the Bank, Alhaji Alhassan Yakubu-Tali, expressed gratitude for the resounding vote of confidence from the shareholders, adding that the additional capital will undoubtedly significantly enhance the overall operations of ADB.
“The additional capital injection will provide solidity and more comfort to our customers, investors, and the general public. For this gesture, I want to say a big thank you to our shareholders for the significant milestone chalked,” he said.
Alhaji Alhassan Yakubu-Tali added that the injunction of the additional capital would not only fortify the Bank’s financial strength but also position it strategically to extend its continuous support to the agricultural sector and other critical areas of operations.
Other resolutions, including the approval of the appointment of a new external auditor for ADB, were also overwhelmingly passed in line with due process.

The Agricultural Development Bank PLC is listed on the Ghana Stock Exchange, with majority of its shares being owned by the government. The Bank also has a sizeable proportion of private institutional and retail shareholders.

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