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ADBN to pay dividends from Rs 1.8b profit
KATHMANDU, AUG 25 -
Agricultural Development Bank Nepal (ADBN), which made a net profit of Rs 1.86 billion to top the list in the last fiscal year, has planned to issue dividends to its shareholders.
“However, we have not decided how much,” said CEO Tej Bahadur Budathoki on Friday. “Our shareholders deserve to receive dividends, and we will definitely declare a satisfactory amount.”
Although the operating profit of the bank was negative, ADBN was able to post a net profit of Rs 1.86 billion thanks to a huge chunk of write back from the provisioning for possible losses. The bank’s recently published unaudited fourth quarter financial highlights show that the write back amounted to Rs 2.17 billion. The bank had posted a net profit of Rs 1.57 billion during the previous fiscal year.
Meanwhile, the divestment process under which 30 percent of the bank’s shares owned by the government are being sold to a strategic partner is going on, according to Budathoki.
ADBN collected deposits worth Rs 43.23 billion from 710,879 depositors and extended loans and advances worth Rs 51.93 billion as of the end of the last fiscal year.
Since 2006, the bank has been conducting a series of reforms with the financial and technical assistance of the Asian Development Bank-funded Rural Finance Sector Cluster Programme. As part of this programme, the bank is being automated with the installation of Core Banking System - T24.
KATHMANDU, AUG 25 -
Agricultural Development Bank Nepal (ADBN), which made a net profit of Rs 1.86 billion to top the list in the last fiscal year, has planned to issue dividends to its shareholders.
“However, we have not decided how much,” said CEO Tej Bahadur Budathoki on Friday. “Our shareholders deserve to receive dividends, and we will definitely declare a satisfactory amount.”
Although the operating profit of the bank was negative, ADBN was able to post a net profit of Rs 1.86 billion thanks to a huge chunk of write back from the provisioning for possible losses. The bank’s recently published unaudited fourth quarter financial highlights show that the write back amounted to Rs 2.17 billion. The bank had posted a net profit of Rs 1.57 billion during the previous fiscal year.
Meanwhile, the divestment process under which 30 percent of the bank’s shares owned by the government are being sold to a strategic partner is going on, according to Budathoki.
ADBN collected deposits worth Rs 43.23 billion from 710,879 depositors and extended loans and advances worth Rs 51.93 billion as of the end of the last fiscal year.
Since 2006, the bank has been conducting a series of reforms with the financial and technical assistance of the Asian Development Bank-funded Rural Finance Sector Cluster Programme. As part of this programme, the bank is being automated with the installation of Core Banking System - T24.
