Naara Rural Bank PLC was incorporated in 1980. The bank was however issued a certificate to commence business with certificate number 17635 effective 11th March, 1981 under the Companies Code, 1963. It was the first rural bank to be opened in the whole of Northern Ghana. It was thus a great occasion for this part of Ghana.

Hon. J. E. Sekyi, the then Regional Minister for the Upper East Region commissioned the bank. The Bank of Ghana sent a strong delegation that was led by Mr. Asiedu-Mante, then Deputy Governor of the Bank of Ghana.

The bank operated under the name Kassena-Nankana Rural Bank until 1991 when it became necessary to change the name to give a wider jurisdiction. The name of the bank was thus changed with the approval of the shareholders to NAARA RURAL BANK. The bank took its name from "naara" which is the name of the early millet that is produced throughout the Upper East Region of Ghana.

Why Naara? Early miilet is the shortest maturing crop in the Upper East and it matures just in good time to relieve the people from the long dry season hunger. The bank found it appropriate to adopt this name because the Bank was a pioneer Rural Bank of the north and it was poised to play the role of the early millet in the region.