Shareholders of Agricultural Development Bank (ADB) PLC have given the green light for an unprecedented capital injection of GH¢2 billion, aimed at bolstering the bank's operational strength.

The endorsement was achieved at an Extraordinary General Meeting (EGM) held in Accra on December 28 last year.

The approved resolution empowers the bank to raise an additional equity capital of up to GH¢2 billion through a renounceable rights issue.

This move is part of the bank's strategy to reinforce its minimum paid-up capital, adversely affected by factors such as the recent Domestic Debt Exchange Programme (DDEP) and challenges in the banking sector over the past two years.

Addressing the EGM, Daasebre Akuamoah Agyapong II, the Board Chairman, highlighted the importance of maintaining the prescribed minimum paid-up capital, mandated by the Bank of Ghana.

The recent economic challenges, including the DDEP and impairments in the loan book, had impacted the ADB's capital position.

The capital infusion is seen as instrumental in advancing the bank's mandate to promote socio-economic development through agriculture and beyond.

The bank's Managing Director, Alhassan Yakubu-Tali, expressed gratitude for the resounding vote of confidence, stating that the additional capital would enhance the bank's overall operations, providing solidity and comfort to customers, investors, and the public.

The ADB's third-quarter results revealed growth in net interest income and operating income.

Despite a decline in net profit due to the DDEP and impairments, deposits from customers increased significantly to GH¢7.7 billion. Total assets also witnessed substantial growth, reaching GH¢9.3 billion.

With liabilities growing to GH¢8.6 billion in the third quarter of 2023, compared to GH¢6.1 billion in the same period in 2022, the capital injection is crucial for sustaining the bank's strategic role in agricultural development in Ghana.

As a listed entity on the Ghana Stock Exchange, with the majority of shares owned by the government, ADB PLC plays a pivotal role in the nation's financial landscape, with support from private institutional and retail shareholders.

The approval from shareholders reflects their enthusiastic commitment to fortify the bank and support its critical functions in the economic development of Ghana.