Demerara Bank opens Gy$460M Diamond branch

Last Monday, Demerara Bank Limited opened a Gy$460 million branch at Diamond, East Bank Demerara, taking the number of its offices countrywide to four. However, that number will soon be changed to five, as work is underway to have another location commissioned on the East Coast Demerara in the near future.

The Demerara Bank edifice is located in the new commercial area along the Diamond Public Road, which already accommodates branches of Republic Bank and the Guyana Bank for Trade and Industry Limited (GBTI).

The new Demerara Bank building sports all modern banking facilities, and is situated on 15,000 square feet of land.

In giving the feature address at the bank’s opening, President Bharrat Jagdeo expressed pleasure at the rate at which the banking sector is moving. He told those gathered at the commissioning ceremony that “…all of the East Bank will benefit. I hope it leads to an expansion of business here.” He added that the move to have the commercial area at Diamond up and running is part of government’s vision to see Diamond become an urbanised network; one of housing, rapid expansion and growth.

“We have seen similar successes in other banking institutions, and if you look at their growth and their profitability, you can only conclude that it is good to be in banking here,” the president said.

With the expansion of Guyana’s economy, Guyana’s head of state believes, more opportunities would become available to all. He stressed it is time that Guyanese begin to feel a sense of pride in the many major accomplishments in the economy.

“We have to start feeling pride in our own achievements, and this is not the government’s achievement, it is our achievement – all of us together, working together to change our country. We should understand that this is linked in a deliberate way to policies,” he stated.

President Jagdeo added that there has been a huge growth in deposits in the banking sector in Guyana. In the past five years, he said, deposits have grown from Gy$155 billion to Gy$248 billion. The loans to the private sector companies have increased from Gy$62 million in 2006 to Gy$112 billion in 2010. In the past five years, the gross domestic product (GDP) has moved from Gy$292 million to Gy$463 million, while the gross international reserves during that period has increased from Gy$277 million to Gy$780 million. “The success you have has been mirrored in aggregate numbers, and also in the central bank,” Jagdeo noted.

While the president is pleased with the move by some in the business community to invest in Guyana’s development, he is urging those in the banking industry to comply with the laws, rules and regulations governing the banking sector.

That aside, the proud president urged the board of directors of Demerara Bank to open smaller institutions across the country. He highlighted his satisfaction with the fact that the building was constructed at a cost of Gy$460 million, cheaper when compared to other buildings of similar magnitude. He noted that, with there being advancements in banking technologies, expansion in small institutions is the way to go.

President Jagdeo also believes that Guyana has a healthy financial sector. He pointed to the fact that, during the global economic meltdown, Guyana was not severely affected. He stressed that there is grave need for the continued strength and health of the financial sector.

Making reference to the company’s move to open another branch on the East Coast Demerara, President Jagdeo noted that that area provides a huge market, so early entrance will see the bank reaping benefits. President Jagdeo added that there is great need for there to be continued solid collaboration between commercial banks and the central bank.

From strength to strength

Meanwhile, Chairman of the Demerara Bank’s board of directors, Yesu Persaud, stated that the bank has grown from strength to strength, and through hard work and determination, it has been able to provide services in Georgetown, Essequibo, Rose Hall Town and Corriverton.

Persaud noted that the new Diamond bank serves to complement the bank’s first headquarters, located on Camp Street and South Road, Georgetown and may very well serve as the company’s headquarters.

He also thanked the government for the move to develop the Diamond community. He believes that it is just the beginning of a transformational process. That aside, the chairman noted the critical need for the bank to maintain its standards, putting customer service at the fore.