Rising Impairment Charges and Higher NPLs Drag ADBL's Q4 Net Profit Down 29.52%
Summary
Agricultural Development Bank Limited's fourth-quarter net profit fell 29.52% to Rs. 2.63 Arba as impairment charges surged and the NPL ratio rose to 4.07%. Despite stronger deposits, lending and net interest income, operating profit declined sharply and distributable profit dropped 55.19%.
Key Points
- Agricultural Development Bank Limited reported a 29.52% drop in annual net profit to Rs. 2.63 Arba in FY 2082/83.
- Impairment charges jumped 85.91% to Rs. 1.17 Arba, pushing operating profit down 24.32%.
- Customer deposits rose 18.36% and loans and advances increased 16.24%, but net interest income still slipped 3.45% from a year earlier.
- The bank's NPL ratio rose to 4.07% while its capital adequacy ratio stood at 13.29%.
