The bank made a regulatory adjustment of Rs 54.4 million in the net profit as per NRB requirement.
Sanima Bank with Rs 8.12 billion in paid-up capital has EPS of Rs 24.45 compared to Rs 18.20 of the last FY. The bank has P/E ratio of 13.16 times.
In the review period, the bank increased its reserve fund to Rs 3.30 billion from Rs 1.43 billion. The reserve fund increased by 130 percent compared to the review period of the last FY.
As per the financial report published under NFRS format, the bank collected deposit of Rs 84.16 billion and extended loan of Rs 75.08 billion.
However, the bank faces the challenge of controlling its employee and other operating expenses. In the review period, its employee expenses increased by 72 percent to Rs 301.1 million while its other operating expenses increased by 47 percent to Rs 148.8 million.
The bank has been able to decrease its bad debt ratio of 0.08 percent. During the period, the bank increased its net interest income by Rs 335.8 million to Rs 978.4 million compared to Rs 642.6 million of the last FY. It earned interest income of Rs 2.52 billion and spent Rs 1.54 billion in interest expenses during the period.
In the Q1, the bank maintained cost of fund of 7.48 percent and base interest rate of 10.55 percent. Similarly, it has CD ratio of 79.14 percent that means the bank has to increase its deposit collection to expand its loan extension.
