Agrobank targets to cut NPLs to single digit

AGROBANK is on track to reduce its non-performing loans (NPLs) to a single-digit percentage, said its president Datuk Wan Mohd Fadzmi Wan Othman.

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=959385
Published: Jun 28, 2013

Source from (The Star Online): http://www.thestar.com.my/story.aspx?file=%2f2013%2f6%2f27%2fbusiness%2f20130627163249&sec=business
Published: Jun 28, 2013

Source from (The Star Online): http://www.thestar.com.my/Business/Business-News/2013/06/28/Agrobank-aims-to-trim-NPL-to-single-digit-by-yearend.aspx
Published: Jun 28, 2013

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/rup270b/Article/
Published: Jun 28, 2013

ON TRACK: Non-performing loans has shrunk to 11.4pc in April from 26.2pc previously


Saddled with NPLs to the tune of 26.2 per cent prior to its corporatisation five years ago, the bank has shrunk it to 11.4 per cent in April.

Second Finance Minister Datuk Seri Husni Hanadzlah, who launched Agrobank's retail internet banking service here yesterday, complimented the bank on the reduction, saying it proves that a development bank can also have quality credit.

Agrobank has maintained average annual loans growth of 10.45 per cent since its corporatisation. These represent 46,658 accounts, an increase of 34.4 per cent of total loans outstanding.


Wan Mohd Fadzmi said the bank, which has loans in excess of RM6 billion, hopes to expand it by RM600 million by the end of the current financial year ending December.

Husni said Agrobank now expects to possess strong financial fundamentals comparable to that of commercial private sector banks.

As at April, the bank disbursed RM721 million of the RM730 million allocated under the Ninth Malaysia Plan and loaned out RM2.4 billion out of the RM2.7 billion under the Government Utilisation Fund.

Meanwhile, Agrobank's retail Internet banking service, AGRONet, enables customers to check their accounts and transaction history as well as pay utilities bills.

The bank had undertaken a year-long pilot run, which attracted more than 20,000 subscribers, and generated transactions worth RM36.12 million. Most of its active users are from Kuala Lumpur, Sabah and Sarawak.

The number of subscribers is expected to increase to 40,000 by end-2013.

Agrobank is planning to include mobile and Internet prepaid top-up services by September.

The second phase of the service, targeting corporate and commercial business customers, will be rolled out later this year.

Agrobank will be introducing more syariah-compliant products such as machinery and equipment financing-i, contract financing-i and special advance for investment assets-i this year, in line with its aim to become a full-fledged Islamic banking institution by 2015, said Wan Mohd Fadzmi.

He added that there are also plans to open seven new branches to expand the bank's reach.