The increase in net profit can be attributed to a decrease in the cost of fund along with reduced bad debt resulting in minimal provision for possible losses.
As per the financial report published under NFRS format, the bank earned a distributable profit of Rs 1.30 billion with the possibility of distributing 16 percent dividend to its shareholders. Similarly, the shareholders' fund of the bank has increased to Rs 1.39 billion from Rs 850 million. The bank has a reserve fund of Rs 4.55 billion.
The bank that increased its paid-up capital to Rs 8.06 billion by distributing bonus share increased its EPS by Rs 5.36 to Rs 24.04.
However, the deposit collection and loan extension of the bank has grown moderately. The bank raised its deposit collection by 7.8 percent to Rs 82.93 billion and loan extension by 9.04 percent to Rs 71.73 billion. The bank earned Rs 3.77 billion in net interest income.
In the review period, the bank logged non-performing loan of 1.5 percent, CCD ratio of 75.08 percent, capital fund of 14.58 percent, cost of fund of 7.23 percent and base rate of 9.98 percent. The bank has net worth per share of Rs 173.72 and P/E ratio of 10.61 times.
