CAL Bank says loan advances to customers will slow amid covid- 19

CAL Bank says loan advances to customers will slow amid covid- 19

CAL Bank has indicated it may have some challenges in granting fresh loans in the coming months.

This is due to the impact of Coronavirus pandemic on the bank’s operations which has affected repayment of loans.

Speaking at Ghana Stock Exchange’s (GSE) virtual ‘Fact Behind the Figures’, the Managing Director of the bank Philip Owuredu said, “Loans are going to be challenged, we have differed some of the construction loans which had scheduled repayment. We’ve differed the repayment which will see an uptake when it comes to nonperforming loans as a whole.

“I do not think that in the terms of construction, looking at the book that we have now we’ll see a significant spike in that. But when it comes to the other sectors like the services and the hospitality industry who have been directly impacted by this…we should see some deterioration when it comes to the quality of the loan book.”

Meanwhile, the Bank’s virtual Annual General Meeting for its shareholders would happen on June 24.

The Bank has also secured the central bank’s approval to pay dividend to its shareholders.

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