Demerara Bank Limited on Tuesday opened its 8th local branch, this time at Mahaica on the East Coast of Demerara (ECD), with President Dr Irfaan Ali lauding the bank for the initiative while at the same time assuring that the Government will continue creating an enabling environment.
The branch, which constitutes a $500 million investment, was opened with the President, who had just come from a trip in Region Eight, in attendance. In his address to the gathering, Ali spoke of how committed the Government is to partner with the Private Sector to ensure that economic expansion continues.
“I want to assure you in the banking sector that we are going to work aggressively on creating an environment that is conducive for growth, creating opportunities for economic expansion. But we are not going to enter the business of generating wealth from that creation. That is for the Private Sector. Rest assured you have a Government that is ready and willing to work with you.”
It was pointed out by the President that at a time when banks are shutting down throughout the world, the opening of one is a testament to the confidence the bank has in Guyana’s economy. More so, he lauded the specific choice to open a bank in Mahaica, which is an important agricultural belt.
“Maybe, the greatest benefit of establishing a presence here, is that you have de-risked the area. And a lot of this will have to take place. De-risking of important economic zones. And Government must be able to support this. And that is why I thought it necessary and important to be here,” President Ali said.
Also in attendance was Senior Minister within the Office of the Presidency with responsibility for Finance, Dr Ashni Singh. In his address to the gathering, Singh urged the bank to be innovative and seek to bring in new customers who may be sceptical about the financial sector.
According to the Minister, more efforts must be made to make the overall banking sector friendlier and more welcoming to customers, especially those with bankable proposals and ideas who are seeking business loans.
“While we applaud the remarkable expansion that Demerara Bank has achieved… it is extremely important for the financial sector and for all of us, to constantly seek out new opportunities in an aggressive way, new ways in which we can innovate, new avenues to which we can expand. I would urge you to seek out aggressively, new and exciting opportunities to lend, to expand your operations.”
“Gone are the days when customers have to leave Mahaica to go to the Georgetown bank branch. But we want to get to the point where ultimately gone are the days when they even have to physically leave their homes, or their chair, to execute bank transactions,” the Finance Minister explained.
In his address to the gathering, Demerara Bank’s Chief Executive Officer Pravinchandra Dave explained that the bank is powered by solar energy and that the total investment into the bank comes up to $500 million- inclusive of $308 million for the building and $62 million for the solar energy.
“Our purpose of coming to Mahaica is to serve the farmers and the entrepreneurs. Before officially opening the branch, we have already opened 1020 accounts… tomorrow those customers can come and do their transactions,” the CEO noted.
Demerara Bank Chairman and local business stalwart Dr Yesu Persaud reflected on the strides that the bank has made since it opened its first branch in 1994. He noted that it took the entrance of the then People’s Progressive Party (PPP) into Government in 1992 for the bank to move forward.
“This bank was supposed to be in the ’70s, but every time I applied for a licence, no answer. And that continued until (1992) when (former President Dr Cheddi) Jagan came into power. And the two of us had discussions and when it was announced that Demerara Bank would be the new bank, it was jubilation. And what we have done, now we have eight branches.”
It was only last month that notwithstanding a year of challenges related to the COVID-19 pandemic, Demerara Bank was able to record $2.2 billion in profits for the fiscal year ended September 30, 2020. It also paid out its highest dividend.
