Rising Impairment Charges and Higher NPLs Drag ADBL's Q4 Net Profit Down 29.52%
Thu, Aug 6, 2026 9:56 AM on Financial Analysis, Highlight News, Company Analysis,
The bank's paid-up capital stood at Rs. 19.73 Arba, including preference shares, while retained earnings declined by 55.19% year-on-year to Rs. 1.26 Arba. Total reserves increased by 8.44% to Rs. 17.90 Arba. Customer deposits grew 18.36% to Rs. 3.47 Kharba, while loans and advances expanded by 16.24% to Rs. 2.47 Kharba.
Net interest income rose 18.36% year-on-year to Rs. 9.12 Arba. Personnel expenses increased by 8.11% to Rs. 4.50 Arba, while impairment charges surged 85.91% to Rs. 1.17 Arba. As a result, operating profit declined 24.32% to Rs. 3.94 Arba, and net profit fell 29.52% to Rs. 2.63 Arba.
Following appropriations and regulatory adjustments, the bank's distributable profit stood at Rs. 1.26 Arba, down 55.19% from the previous fiscal year.
On the asset quality front, the Capital Adequacy Ratio (CAR) stood at 13.29%, compared to 13.93% a year ago. The Non-Performing Loan (NPL) ratio increased to 4.07% from 3.44%, reflecting a deterioration in asset quality. Meanwhile, the cost of funds improved, declining to 2.97% from 3.81%.
The bank reported Earnings Per Share (EPS) of Rs. 16.11, slightly lower than Rs. 24.59 in the previous year, while Net Worth Per Share stood at Rs. 233.99. Based on the quarter-end market price of Rs. 309, ADBL's Price-to-Earnings (P/E) ratio stood at 19.18 times.
Major Financial Highlights:
*Note: EPS and Net Worth Per Share have been calculated excluding preference shares.
| Particulars (In Rs '000) | Agricultural Development Bank Limited | ||
| Q4 2082/83 | Q4 2081/82 | Difference | |
| Paid Up Capital | 19,738,231.09 | 19,287,936.30 | 2.33% |
| Ordinary Shares | 14,305,519.09 | 13,855,224.30 | 3.25% |
| Preference Share (Irredeemable) | 5,432,712.00 | 5,432,712.00 | 0.00% |
| Retained Earnings | 1,262,186.67 | 2,816,669.32 | -55.19% |
| Reserves | 17,905,910.01 | 16,512,311.73 | 8.44% |
| Deposit | 347,219,869.16 | 293,358,979.20 | 18.36% |
| Loans & Advances | 247,145,223.96 | 212,616,735.26 | 16.24% |
| Net Interest Income | 9,121,508.26 | 9,447,467.17 | -3.45% |
| Personnel Expenses | 4,508,578.45 | 4,170,248.77 | 8.11% |
| Impairment Charges | 1,172,658.42 | 630,772.01 | 85.91% |
| Operating Profit | 3,943,590.53 | 5,210,829.54 | -24.32% |
| Net Profit | 2,630,641.84 | 3,732,416.20 | -29.52% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 1,262,186.67 | 2,816,669.32 | -55.19% |
| Capital Adequacy (%) | 13.29 | 13.93 | -4.59% |
| NPL (%) | 4.07 | 3.44 | 18.31% |
| Cost of Fund (%) | 2.97 | 3.81 | -22.05% |
| EPS (In Rs.) | 16.11 | 24.59 | -34.47% |
| Net Worth per Share (In Rs.) | 233.99 | 239.51 | -2.30% |
| Qtr end PE Ratio (times) | 19.18 | - | - |
| Qtr End Market Price | 309 | - |
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