Heavy expenses on ADBL’s staff squeezes bank profit, profit falls 34%

ShareSansar, August 15:

Thanks to the hefty amount of expenses on its staffs, profit’s of Agricultural Development Bank Ltd has plummeted by whopping 34 percent in the fourth quarter of the last fiscal year 2070/71.

According to the unaudited financial statement of the bank published today, its net profit fell to Rs 1.51 arba in the last fiscal year from Rs 2.29 arba of net profit that it had posted in the corresponding period of the previous fiscal year 2069/70.

The statement shows that the bank, where the government has the majority of the stake, spent Rs 3.35 arba under the ‘staff expenses’ heading.  

The net interest income of the bank also dropped to Rs 4.59 arba from Rs 4.72 arba in the corresponding previous year quarter ending.


The bank was able to bring down its non-perform loan (NPL) by marginally to 5.34 percent from 5.85 percent.  

The write back of Rs 61.53 crore from the amount it had earlier provisioned for the possible loss was also one of the main contributing factors for the profit of the bank.

The bank, however, observed a notable growth in the deposit and loan mobilization last year. It mobilized Rs 65.83 in deposit and Rs 57.51 in loans last year, up from Rs 54.48 arba in deposit and Rs 49.69 in loans in the previous year.

Reserve and surplus of the bank also rose to Rs 6.1 arba from Rs 4.59 arba in the previous fiscal year.

The bank, in its statement, said that the reserve and surplus has increased due to the increment in profit contributed mainly by income from loans and treasury transactions.
Its annualized EPS is at Rs 35.1, P/E ratio 19.66 times and net worth per share stands at Rs 278.42.