Agricultural Development
Bank
Ltd (ADBL) has claimed
that it will reduce its
non-performing loans (NPL)
to 23 per cent by the end of
this fiscal year from the
current level of 25.6 per
cent. The reform and
restructuring programme at
the country’s largest bank
in terms of loan portfolio,
branch network and paid-up
capital is on the right
track, claimed Yogeswor
Pant, general manager at
ADBL. A significant
reduction in NPL from 36 per
cent in 2002 to the current
level as well as manpower by
more than 1,200 employees
are testament that the
reform is satisfactory, he
said. In the meantime, the
bank’s business also rose by
64 per cent during the same
period, while ADBL made an
operating profit of Rs 726.4
million during the first
nine months of the current
fiscal year alone, Pant
said. The government had
carried out the ADBL’s
financial performance review
in 2002 with technical
assistance of the Asian
Development Bank (ADB),
which had reported the
bank’s NPL at 36 per cent.
The bank has been
implementing restructuring
plans since 2004 for
strengthening technical
areas including credit
management, training,
finance and accounting,
internal audit and risk
management, Manohar Shrestha,
director at ADBL said. Since
November 2006, ADBL has been
implementing the
restructuring programme
under the ADB-funded Rural
Finance Sector Development
Cluster Programme-I with an
assistance of $65.2 million,
including $9.2 million
grant. Shrestha informed
that the bank’s liquidity is
also in a good position, as
equity of more than two
billion rupees is scheduled
to be injected by October
2007 and an additional one
billion rupees by the end of
this year. Moreover, the
Rural Finance Sector
Programme Cluster-II of $35
million is in the pipeline
for 2010-2011, he said. The
bank is in the process of
issuing five per cent
ordinary shares to its
shareholders and then ADBL
will undertake the issuance
of 30 per cent shares to the
public, Shrestha added.
More
about the loans of the Agricultural Development
Bank
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