
Finance Minister Paudel Expresses Concern Over Stagnant Loan Disbursement


Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has expressed concern over the sluggish growth in loan disbursement despite encouraging deposit collection in banks.
Speaking at the 58th anniversary event of the Agricultural Development Bank, Nepal (ADBN), Minister Paudel emphasized the need for banks to devise strategies to boost loan disbursement. He highlighted that increased loan investment is crucial for enhancing production, productivity, and job creation.
The Minister urged the ADBN to adopt a professional and competitive approach, focusing on fostering strong relationships between management and employees. He stressed that achieving the bank’s foundational objectives should remain the top priority.
Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari, also addressing the event, shared a positive outlook on the country’s economic recovery. He noted that key financial indicators, such as liquidity and interest rates, have improved, and government revenue collection has risen compared to the previous fiscal year.
However, Governor Adhikari acknowledged challenges in loan recovery and inflation management due to recent disasters. Despite these pressures, he stated that the overall economic situation remains within expected limits. He praised ADBN for its leadership in agricultural sector investments and its role in promoting financial inclusion, green finance, and technology adoption.
Ram Sharan Pudasaini, Chairman of ADBN’s Board of Directors, highlighted the bank’s focus on sustainable banking practices. He emphasized adherence to regulatory laws, robust risk management, and maintaining credit quality as priorities to ensure financial stability.
Pudasaini outlined the bank’s efforts to expand business operations, deliver quality services, and implement modern banking technologies, institutional governance, and investment-friendly policies.
Established on January 21, 1968, with an initial authorized capital of Rs 50 million, the Agricultural Development Bank aims to support rural and agricultural development in Nepal. Currently, 51% of the bank’s ownership is held by the government, while 49% is with the general public.
The bank has disbursed loans worth Rs 206 billion to approximately 151,000 borrowers and manages Rs 259 billion in deposits from over 2.34 million depositors. With an authorized capital of Rs 25 billion and a strong capital fund ratio of 13.14%, ADBN remains a key player in Nepal’s financial sector.
Bank spokesperson and company secretary Himlal Poudel outlined ADBN’s future priorities, including reducing funding costs, cutting expenditures, minimizing non-performing loans, and recruiting qualified manpower. These measures aim to bolster the bank’s performance and continue its support for agriculture and agro-industries modernization, industrialization, and commercialization.
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