Kathmandu, January 19:

In a bid to empower farmers in rural areas by making them economically strong, the management of Agricultural Development Bank (ADBN), after being converted into a limited company, is planning to distribute 65 per cent of its shares to farmers.

State minister for finance, Dr Roop Jyoti while speaking at the 39th anniversary of ADBN, declared that the bank’s plan to distribute 65 per cent shares to farmers is aimed at boosting farmers’ economic status and devoting the bank further to poverty alleviation initiatives taken by the government.

The bank is facing difficulties due to conflict and it has to work hard by minimising risks to become financially strong in days ahead at a time when 17 commercial banks are competing each other, said Dr Jyoti.

The bank has already registered under the company act and Nepal Rastra Bank has given it approval to carry out financial transactions. Given such a context, the bank has to make its service delivery effective for customers and generate profit to sustain in the long run, Dr Jyoti suggested. He also said that loans provided by the bank in agricultural sector in areas such as tea, sugarcane, vegetable, fishery and irrigation can be termed as commercialisation of the agriculture sector.

Prof Bijay K C, chairman of ADBN, expressed his view that the bank is in an increasing competition and has to cope with challenges aggressively. K C also stressed on making maximum use of resources and boost service delivery to satisfy more customers.

“At a time when the bank is undergoing an internal reform process and is being converted into a limited company, the bank may face tough times ahead. We need to be prepared ourselves by bringing improvements in deposit collection and investment,” said Dr KC.

Acting general manager of the bank, Hari Gopal Gorkhali said that the bank has already invested Rs 97 billion and recovered Rs 760 million from its investment.

The ADBN, to uplift the economic status of people who are residing in urban and semi-urban areas, has invested Rs 13 billion annually on an average. The bank has direct relations with 500,000 customers for credit transactions for which bank’s 4,000 staff are involved in the competitive market, said Gorkhali.

As per prudential norms of Nepal Rastra Bank (NRB), ADBN is undergoing financial restructuring along with other reforms such as organisational restructuring, reduction in unnecessary offices, policy reforms and manpower development, said Gorkhali on the occasion of 39th anniversary of the bank.