25 world class banks interested in strategic partnership with ADBL

ShareSansar, June 29:

Altogether 25 international banks have shown interest in Agricultural Development Bank Limited (ADBL) for the strategic partnership.

The interested international banks are asking for 51 percent ownership of shares; however the government has allotted only 31 percent out of the 51 percent shares for the international banks, according to the ADBL’s CEO Tej Bahadur Budathoki.

However he did not provide details.

“The special audit is expected to be completed within mid July, which will also show the bank’s true financial status and we would be in position to decide about the partnership,” says Budathoki.

“Meanwhile, the Expression of Interest is already ready at the Ministry of Finance, and we are planning to issue it by the first week of July,” a senior ADBL officer said.  

He further informed that the deal with a leading international bank will be signed in a premium rate, which will be much higher than the prevailing price of ADBL in the secondary market.

The state-run ADBL is not just a huge asset-based company with one of the largest network all over the country, but also a bank with one of the highest income.

“We are confident that the strategic partner will be operating with us within 2014,” he added. “This will not only drastically enhance capital, technical aspects of ADBL with efficient manpower, but will also set a benchmark for rest of the commercial banks to follow.”

ADBL, one of the largest banks in the country, is seeking the strategic partnership as per the agreement reached by the government with the Asian Development Bank to divest its 30 percent of its stake in the bank by September, bringing in a strategic partner to improve the management and performance of the bank.

In February, the state-run bank had signed a contract with Dev Associates, which is affiliated to Baker Tilly International for the special international audit of the bank, officially initiating the process to forge international strategic partnership for better management and performance of the bank.

Dev Associates Chartered Accountants has been appointed as an independent member firm of Baker Tilly International with effect from October 2011. As per the deal, Dev Associates and Baker Tilly Nepal are jointly representing as Baker Tilly International member firms in Nepal.

As an audit conducted by a domestic firm is not usually recognized for global tenders, ADBL has effectively hired Barker Tilly International, which is one of the top ten global audit firms in the world that works in 131 counties across the world.