January 22: Nepal Rastra Bank’s (NRB) Governor Maha Prasad Adhikari has advised the state-owned Agricultural Development Bank to increase investment in agricultural sector and focus on import substitution.    

In his address to the 57th anniversary of the Agricultural Development Bank on Sunday, the NRB governor advised the bank to utilise the available financial resources for the growth of agricultural production, import minimization and export promotion.    

"The agricultural sector has a huge potential. It can help address the gap in supplies and price chain. It can extend its access to farmers and workers deprived of financial services and the marginalised community," he said. He also stressed on the need for the bank to diversity its services.    

Chairman the Board of Directors of the bank Ram Sharan Pudasaini said the bank had achieved success despite a sluggish economy in the nation and in the world.

"The bank is competent to successfully manage the potential systemic risk in the banking sector," he said.    

Poverty alleviation, small farmers' development programme, rural and agricultural development and micro finance services for rural and indigenous community are the special concerns of the bank, according to him.   

The bank was established on January 21, 1968 under the ADBN Act 1967 with the main objective of providing institutional credit for enhancing the production and productivity of the agricultural sector in the country.

The bank was established in 2041 BS. On the occasion of its anniversary, it announced 11 percent cash dividend and two percent bonus share for its shareholders from the profit of the fiscal year, 2021/22.    

During the last fiscal year, the bank’s operational profit was Rs 4.82 billion while the deposit collection amounted to over Rs 199 billion and the loan disbursement was calculated at over Rs 182 billion. The portion of bad loans in the last fiscal was 2.78 percent. The bank’s issued and paid-up capital stands at Rs 18.62 billion and 51 percent of its share is owned by the government. (With inputs from RSS)