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ADBL’s profit drops to Rs 1.6b
KATHMANDU, AUG 15 -
The Agricultural Develop-ment Bank Limited (ADBL) saw a decrease in its net profit in the last fiscal year. It earned Rs. 1.60 billion compared to Rs. 1.72 billion in the previous fiscal.
Bank officials said that profits had been hit by the increased provisioning requirement. The bank’s profit had gone up in the previous year not only due to good performance but also because of the compensation received from the government for writing off small loans of up to Rs. 30,000.
“The policy was discontinued last year, and we could not meet the profit level of the previous fiscal year,” said Dilip Jung Shah, chief of credit division at the ADBL.
The bank has investments of Rs. 40 billion while its deposits amount to Rs. 34 billion, which means its credit and deposit ratio has crossed 100 percent. “But it is around 95 percent if the core capital is also included that matches the target set by the central bank for the last fiscal year,” said Shah.
The bank has non-performing loans of around 10 percent. “About Rs. 2 billion that went to cooperatives in the past is unlikely to be recovered with a majority of them vanished into thin air,” said Shah.
Posted on: 2010-08-16 08:06
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