NRB Governor advises ADBL to diversify services

KATHMANDU: Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari has urged the Agricultural Development Bank Ltd (ADBL) to increase its investment in the agricultural sector and focus on replacing imports.

Speaking at the 57th anniversary of the ADBL, NRB Governor Adhikari encouraged the bank to use the available financial resources to boost agricultural production, minimise imports and promote exports.

"The agricultural sector has enormous potential. It can help bridge the gap in supply and price chains. It can extend its reach to farmers and workers who lack financial services and the marginalised community," he said. He also emphasised the need for the bank to diversify its services.

Nepal Banker's Association President Sunil KC said the bank is adopting sustainable banking practices and that these should be further promoted.

ADBL Chairman, Ram Sharan Pudasaini, said the bank has achieved professional success despite a sluggish economy both nationally and globally. "The Bank is capable of successfully managing potential systemic risk in the banking sector," he said. 

According to him, the bank's special concerns are poverty alleviation, the development of small farmers, rural and agricultural development, and microfinance services for rural and impoverished communities.

The bank was established in 2041 BS. To mark its anniversary, it announced an 11% cash dividend and a 2% bonus share for its shareholders from the profit of the fiscal year 2021/22.

In the last fiscal year, its operating profit was Rs 4.82 billion, with deposit collections exceeding Rs 199 billion and loan disbursements calculated at over Rs 182 billion. The portion of bad loans in the last fiscal year was 2.78%. Its issued and paid-up capital amounts to Rs 18.62 billion, with 51% of its shares owned by the government.

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