Net Profit of Karnali Development Decreases

Aug 06, 2017 Merolagani

Karnali Development Bank (KRBL) has earned a net profit of Rs 13.1 million in the last FY. The net profit decreased by seven percent i.e. Rs 1 million compared to the previous FY. In the previous FY, the company earned Rs 14.1 million net profit. The reduction in the profit can be attributed to the decrease in the operating profit. However, net interest income of the bank has increased in the review period.

During the period, the bank collected Rs 2 billion deposit and extended Rs 1.03 billion loans. The bank has Rs 151 million paid-up capital and Rs 40 million in its reserve fund. Meanwhile, its bad debt and CD ratio stood at 2.27 and 49.75 percent respectively.

Presently, the earning per share (EPS) of the company stands at Rs 8.71 which is likely to fall after the issuance of 225 percent right shares. The bank has expedited its process of issuing the 225 percent right shares to its existing shareholders. As per the directive of NRB, the bank must meet the minimum paid-up requirement of Rs 500 million.

 

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