The bank logged the decline in net profit despite 22 percent increase in deposit collection and 20 percent loan extension due to the huge increase in interest expenses leading to low interest income.
Similarly, the reserve fund of the bank also decreased by Rs 2 billion to Rs 13.39 billion in the review period. Likewise, the cost of fund of the bank also rose to 5.5 percent which was below 3 percent in the previous FY.
Moreover, the base interest rate also increased to 7.98 percent from earlier 7.03 percent.
The increase of other operating income to Rs 220 million from Rs 10 million, operating profit to Rs 4 billion from Rs 480 million and increase in distributable profit by nearly 15 percent to Rs 3.5 billion are positive points of the bank. Similarly, significant increase in shareholders fund and share premium fund are also another happy note for shareholders.
By the fourth quarter of the last FY, the bank collected deposit of Rs 117.20 billion and extended loan of Rs 92.41 billion. The bank earned Rs 6.17 billion in net interest income.
The bank with Rs 9.81 billion in paid-up capital has EPS of Rs 12.83, net worth per Rs 300.05, non-performing loan of 2.58 percent, base interest rate of 7.98 and cost of fund of 5.50.