Agricultural Dev. Bank profit rises by 23.09% to Rs 2.21 arba till Q3; has capacity to distribute 16% dividend next year

Agricultural Development Bank Limited (ADBL) has posted an excellent rise in net profit in the third quarter of the fiscal year 2075/76.

As per the unaudited report, its net profit has increased to Rs 2.21 arba, up from Rs 1.79 arba which is an increment of 23.09%. ADBL’s operating profit for this quarter stands at Rs 2.76 arba. The operating profit has also increased by 22.08% compared to the same quarter of last fiscal year.

As of the end of Q3, its deposit stands at Rs 1.12 kharba with floated loans of Rs 1.09 kharba. The company's Non-Performing loan has decreased from 5.98% in Q3 of last fiscal year to 4.22% of the current fiscal year.

ADBL’s paid-up capital stands at Rs 14.44 arba which includes Rs 9.01 arba from ordinary shares and Rs 5.43 arba from irredeemable preference share.

The reserve & surplus of the company stands at Rs 12.56 arba and net worth per share is Rs 239.35.

The P/E ratio of the company is 10.82 times. The company's CCD and Base rate is 78.29% and 11.16% respectively.

In the same quarter, the bank has Rs 1.32 arba as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. If the profit growth of this quarter continues in fourth quarter then the company will have Rs 1.76 arba (approx.) as distributable profit. This means ADBL has capacity to distribute 16% dividend approx. (after dividend to pref. shares) from the profit of current fiscal year.

Major Highlights:

 * Figure are of Immediate Previous Year Ending (Audited)

 * Published EPS, Networth and PE may differ. As per NFRS standard, Weighted average number of shares is taken while calculating EPS, Networth and PE but we have taken number of shares as per Q3 end paid up capital.

*EPS is calculated taking remaining net profit after profit set aside for irredeemable pref. shares.