Finance Minister Paudel raises concern over stagnant loan investment

KATHMANDU: Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, has expressed concern over the lack of growth in loan investment.

Speaking at the Agricultural Development Bank’s (ADBL) 58th anniversary in Kathmandu today, Paudel noted that while deposit collection in banks has been encouraging, loan disbursement has not increased as expected. He urged banks to explore strategies for boosting loan growth to enhance production, productivity, and job creation.

Paudel also instructed the ADBL to function with a more professional and competitive approach and stressed the importance of achieving the bank's founding objectives.

During the event, Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari stated that the country's economic and financial indicators are improving. However, he highlighted issues with loan recovery. Adhikari praised the ADBL's significant contribution to agricultural sector investment and its efforts in promoting financial inclusion and green finance.

On the occasion, ADBL Chairman Ram Sharan Pudasaini emphasised the priorities of adhering to laws, risk management, and maintaining credit quality for sustainable banking. The bank has focused on business expansion and quality service delivery through modern banking facilities and good governance, he said.

By RSS

The ADBL, established on January 21, 1968, aims to support the development of rural and agricultural sectors in Nepal. It offers loans for agricultural modernisation, industrialisation, mechanisation, and commercialisation.