ADBL compensated for its loan waiver

KATHMANDU: The government has compensated Agricultural Development Bank Ltd (ADBL) for its loan waiver with an amount of Rs 4.1 billion.

The Loan-waiver Programme declared by former Finance Minister Dr Baburam Bhattarai, in his budget for the fiscal year 2008-09, waived loan and interest of a borrower having taken Rs 30,000 loan and the interest on loans of Rs 1,00,000. The government has compensated ADBL for the waived amount, said ADBL chief executive officer Janak Raj Shah. “The compensation has added Rs 3.89 billion to the bank’s reserve,” he added.

“ADBL’s non-performing assets (NPA) has come gone down from 11.9 per cent to 8.6 per cent,” he said adding that ADBL has 88 branches, including eighteen re-established ones. The bank has been progressing in the areas of CBS, rural finance sector development cluster programme and management services. “It will float Rs 960 million worth primary shares — the biggest ever in the banking history of Nepal — in the near future as soon as its board approves,” Shah said.

The bank acquired Rs 35 billion as deposits and floated Rs 38.2 billion loans. It made a profit of Rs 1.6 billion.