In the review period, the company earned Rs 1.15 billion in distributable profit through which the bank can distribute 12 percent dividend to its shareholders.
The bank with Rs 8.92 billion in paid-up capital has EPS of Rs 17.67. Similarly, the bank has a reserve fund of Rs 2.16 billion and shareholders fund of Rs 1.55 billion.
Compared to the review period of the previous FY, the staff expenses and other operating expenses of the bank increased by 30 and 40 percent respectively. Although the non-performing loan of the bank has decreased to 1.11 percent, its provision for possible loss has increased in the review period. The bank must increase its capital as per new directive of NRB given that its capital fund ratio has squeezed to 11.33 percent.
During the period, the base interest rate and cost of fund of the bank has also decreased to 10.31 percent and 7.01 percent compared to the previous FY.
In the fourth quarter of the last FY, the bank collected deposit of Rs 79.74 billion and extended loan of Rs 75.22 billion. During the period, the bank earned net interest income of Rs 3.04 billion. The bank maintained net worth per share of Rs 141.67, P/E ratio of 12.79 times.
