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ADBL – Establishment, Development, Work Nature, Mission, Vision & Objectives

— April 7, 2022 comments off
ADBL

This article covers the following topics

  • Establishment of Agriculture Development Bank Limited
  • Development phases of Agriculture Development Bank Limited
  • Mission, Vision, and Corporate values of Agriculture Development Bank Limited
  • Organizational structure of Agriculture Development Bank Limited
  • Capital ownership structure of Agriculture Development Bank Limited

Establishment of ADBL

With the main objective of providing institutional credit for enhancing the production and productivity of the agriculture sector of the country, the Agriculture Development Bank of Nepal (ADBN) was established in 1968 AD under the Agriculture Development Bank Nepal act 1967 as a successor to the cooperative bank.

The land reform saving cooperatives were merged with this bank in 1973. Subsequent amendments to the act empowered the bank to extend credit to small farmers under group liability and expand the scope of financing to promote cottage industries. The amendment also permitted banks to engage in commercial banking activities for the mobilization fo domestic resources.

The bank worked as a premier rural credit institution since its establishment, contributing substantial agriculture credit supply in the country. Rural finance has been principle operation area of this bank in the past. However, the bank is also involved in commercial banking operations since 1984 to provide commercial banking services.

The bank has a 51 % share of the Government of Nepal and 49 % of the general public. Most of its shareholders are customers and employees.

After the enactment of the Bank and Financial Institutions Act (BAFIA) took all the BFIs under its umbrella and abolished all the acts related to BFIs including the ADB Act 1967. Since then ADBN has been working as a public limited company registered under the Company Act 2006 and has been licensed as “A” class financial institution by Nepal Rastra Bank since 2006.

Having a glorious history of more than 57 years, the bank is one of the leading commercial banks in the country. With its investment in agriculture, industry, trade, commerce and households, the bank has above 1.2 million happily satisfied customers.

Just like its slogan that “Bank with complete banking solution at your own doorstep“, its is expanded all over the 7 provinces, 77 districts,  with its 278 offices while providing comprehensive services with a complete banking solution. The bank has the main motto of promoting rural agriculture, the productive and deprived sector. The bank is committed to providing the best banking service through its widespread network.

What are the Mission, Vision and Corporate Values of ADBL

Vision

The bank of choice for shared prosperity.

Mission

  1. Ensure customer service excellence.
  2. Attain sustainable business growth with complete financial solutions.
  3. Contribute to the economic and social prosperity of the nation.
  4. Uphold ethical practices, governance, and transparency at all levels.
  5. Assure profitability for shared prosperity.

Corporate Values

Corporate values are the guiding principles for doing business, which provide a foundation for ethical conduct, build trust and credibility, foster employee engagement and morale, attract and retain talent, and support effective risk management and compliance. By living its values everyday, a Bank can create a positive and sustainable organizational culture that drives long-term success and delivers value to all stakeholders.

Corporate Values of ADBL are abbreviated as EASIER for ease of remembering and defined as below:

    1. Ethics and Integrity (नैतिकता र निष्‍ठा): As a corporate value of ADBL, “Ethics and Integrity” signifies a commitment to conducting all business activities with the highest standards of honesty, fairness, and transparency. It involves adhering to moral principles and ethical guidelines in every decision and action taken by the bank, whether dealing with customers, employees, stakeholders, or the wider community.

 

    1. Accountability, Responsibility, Transparency and Empowerment (जवाफदेहिता, जिम्मेवारि, पारदर्शिता र सशक्तिकरण): This represents a holistic approach to governance and cdivture within the organization. This involves individuals and teams taking ownership of their actions, decisions, and outcomes. ADBL’s corporate culture enables individuals and teams to make decisions, take initiative, and drive positive change within the organization that fosters the culture of innovation, collaboration, and continuous improvement.

 

    1. Service to Stakeholders (सरोकारवालाहरूलाई सेवा): Knowing Customers, Shareholders, Employees, Regdivators, Government and Society as a whole as major stakeholders, ADBL underscores the importance of building mutually beneficial relationships with all stakeholders by ensuring the reasonable benefits while prioritizing their needs, fostering trust and transparency and contributing positively to the broader society and economy. By aligning its actions and decisions with the interests of stakeholders, the bank can achieve sustainable growth, resilience, and long-term success in the financial industry.

 

    1. Innovation and Evolution (नविनता र विकास): The value of innovation and evolution together serves as guiding principles that encourage the bank to embrace change, pursue opportunities for growth and improvement, and drive long-term value creation for its stakeholders. By fostering a culture of innovation and continuous evolution, the bank can anticipate and address emerging challenges and capitalize on new opportunities, positioning itself as a leader in the dynamic and competitive banking industry.

 

    1. Equality and Diversity (समभाव र विविधता): ADBL is committed to fostering an inclusive and equitable workplace environment that respects and celebrates the unique differences and contributions of all individuals. ADBL believes that Equality and Diversity as a corporate value underscores the importance of creating a workplace culture that values and respects the inherent worth and dignity of every individual.

 

  1. Respect and Humility (सम्मान तथा विनम्रता): ADBL understands that respect and humility together will serve as guiding principles that shape the bank’s culture, behaviors, and decision-making processes. By promoting respect for others and humility in actions, the bank can build cohesive, mutually respectful and beneficial relationships with customers, employees, and stakeholders, foster a positive and supportive work environment, and uphold high ethical standards and integrity in all aspects of its operations.

 

Corporate Characters of ADBL

The corporate character (DNA) of a commercial bank serves as its moral compass, guiding its actions, shaping its culture, and ultimately determining its success in achieving its mission and fulfilling its responsibilities to stakeholders. Understanding the importance of corporate character, ADBL defines the corporate character desired from its employees as follows.

    1. Performance Driven (कार्यसम्पादन निर्देशित): At ADBL, one should have a performance-driven character that encapsulates a commitment to achieving tangible outcomes, fostering a culture of accountability and ownership, embracing continuous improvement and adaptation while recognizing and rewarding performance and excellence.

 

    1. Customer Centric (ग्राहक केन्द्रित): ADBL is committed to delivering exceptional value, service, and experiences that surpass customer expectations. By fostering a customer-centric culture, embracing continuous improvement and innovation, personalizing interactions and delivering service excellence, ADBL intends to delight the customer to differentiate itself as a customer-centric Bank in the market, build strong customer relationships, and drive sustainable growth and profitability in the longer term.

 

    1. Risk and Compliance (जोखिम र अनुपालना): Integrating Risk and Compliance as a corporate character of ADBL signifies a commitment to embedding risk management and compliance practices into the organization’s culture, operations, and strategic decision-making processes. By integrating risk management and compliance culture into its DNA, ADBL can enhance resilience, promote ethical conduct, and support sustainable growth while safeguarding the interests of stakeholders and maintaining regulatory compliance.

 

    1. Ethical Practice (नैतिकवान अभ्यास): This is a commitment to conducting business with integrity, honesty and accountability guided by ethical principles and values. By upholding ethical standards in all aspects of its business and operations, ADBL can build trust and credibility with stakeholders, mitigate risk and contribute to sustainable long-term success and prosperity for all.

 

    1. IT and Digital Orientated (सुचना प्रविधि र डिजिटल उन्मुख): ADBL is committed to leveraging cutting-edge technologies and digital solutions to drive transformation, enhance customer experiences and remain competitive in the digital age. By investing in technological and digital innovation and building the character of willingly embracing and adapting to the technological advancements in its employees, ADBL enhances its competitiveness, improves operational efficiency and creates sustainable value for customers, employees and stakeholders in an increasingly digital and connected world.

 

    1. People, Process and System (जनशक्ति, प्रक्रिया र प्रणाली): People, process and system serve as the foundation of the Bank which needs to be built-in or instilled in each employee of the Bank as a corporate character driving the cdivture of believing and trusting in the people, process and system for continuous improvement, agility and competitiveness. By embracing the belief and trust in the people, process and system, the Bank will invest in people for up-skilling and continuous enhancement of capabilities for unleashing their potential, invest in developing the process and systems for ensuring the governance, compliance, risk management and control while, at the same time, assuring the efficiency, accuracy and quality in all functions for service excellence and business growth.

 

    1. Teamwork (सामुहिककार्य): One of the corporate characteristics of ADBL, Teamwork embodies a commitment to collaboration, coordination, and synergy among employees for carrying out various types of jobs. ADBL, by fostering and nurturing the character of teamwork and collective effort in the employees, is clear on harnessing the full potential of each individual staff and organizational resources to achieve its strategic objectives, drive innovation, and create long-term value for all the stakeholders.

 

    1. Growth Mindset (बृद्धिगर्ने सोच): ADBL intends to have continuous growth year in year out to become the market leader, for which each individual staff member has to have a growth mindset embedded in their character. Each employee individually and collectively should always aspire for growth and thus needs to direct all their actions to achieve growth in all spheres of business. Decrease in business and/or revenue/profit volumes is never an option and hence should always work with “Can Do Attitude” for business growth leading to prosperity.

 

    1. Profit Sense (नाफामुखि चेतना): As a corporate character of an ADBL, “Profit Sense” embodies a strategic orientation towards value creation in everything we do for financial sustainability and service to all the stakeholders. By prioritizing profitability alongside responsible business practices, the bank can achieve its financial objectives while fulfilling its broader social, economic and ethical responsibilities in the communities it serves.

 

  1. Learning and Development (सिकाइ र विकास): As a corporate character of ADBL, Learning and Development embodies a commitment to fostering a culture of continuous learning, upskilling, and sharpening the knowledge base among employees for improving oneself individually and at the organization level. By investing in employee learning and development, ADBL can enhance the competence level and bring in competitiveness in each employee, which in turn will contribute to improving the organizational performance, employee engagement, retention, drive innovation, and position itself for long-term success in the dynamic and ever-changing banking industry.

[Mission and Vision are changed in tenure of CEO Govinda Gurung in fiscal year 2081/81]

Organizational Structure of ADBL

The following is the organizational structure of the Agricultural Development Bank Limited.

1) Board of Director – BoD

Board of Directors (BoD) is the apex body of the bank. It formulates policies as well as strategies and provide guidance to the management. The board comprises a total of 7 members. 3 members representing the Government of Nepal and 3 members representing shareholders. Besides these, one member is nominated the board as per the BAFIA as an independent director.

  • Total – 7 Members
  • Government of Nepal – 3 Members
  • Shareholder – 3 Members
  • As per BAFIA – 1 Member

2) Committees 

There are 4 committees on the board. They are

  1. Risk Management Committee
  2. Audit Committee
  3. AML/CFT Committee
  4. Human Resource Facilitation Committee

These committees are formed to help strengthen internal control and corporate governance for the BoD.

3) Management Committee

Management committee is responsible for day to day operation of the bank. Chief Executive Officer (CEO) lead the management committee. The CEO is closely assisted by 6 DGM. i.e

  1. Chief credit officer – CCO
  2. Chief operation officer – COO
  3. Chief service officer – CSO
  4. Chief human resource officer – CHRO
  5. Chief finance officer – CFO
  6. Chief agriculture credit officer – CACO

25 department head help management committee. Likewise, CEO is also supported by asset and liabilities management sub-committee, project management unit, grievance handling  and relationship management  for better internal control and business operation.

Operational structure

There are thee-tier of organizational structure in ADBL. They are

  1. Head office
  2. Provincial office
  3. and field office (Branch Officer)

Field offices are further classifies into branch office A, B,C, D and other branch offices. The head office is policy making body at the top, the field office are implementing unit at the bottom, and provincial office with monitoring and supervisory role are in between.  There are 2670 employees all around Nepal as of FY 79/80.

ADBL is serving all over the 7 provinces & 77 districts of the nation with its 278 offices. While providing comprehensive services with complete banking solution, the bank has main motto of promoting rural agriculture, productive and deprived sectors. The bank is committed to provide best banking services through its widespread network and help the government from its part, to achieve the aim of: “Prosperous Nepal, Happy Nepali”.

Capital Ownership Structure of ADBL

  • Authorized capital – 25 Arba
  • Authorized equity share capital – 16 Arba
  • Authorized preference share capital – 9 Arba
  • Issued and paid-up capital – 18,620,627,763

From general issued share capital NRs.13,187,915,763/- (51% of Nepal Government and 49% of general public) & From non-cumulative irredeemable preference share capital NRs.5,432,712,000/- (100% of Nepal Government).

Both equity and preference shares are of NRs. 100 each.

Organizational structure of ADBL

Click here to view the latest ADBL Organigram (FY80/81)

ADBL Important Questions

  1. Briefly highlight the establishment and development stage of ADBL – 10 Marks
  2. Highlight the mission, vision and objectives of ADBL – 5 Marks
  3. Highlight the organizational structure and capital structure of ABDL – 10 Marks
  4. Introduce ADBL and explain its SWOT of ADBL – 2+8 Marks
  5. What are the code of conduct to be followed by ADBL employees – 10 Marks

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