As per Basudev Adhikari, Chairman of the bank, in the first quarter of the last FY, the bank managed to earned the net profit of Rs 913.8 million due to huge recovery of Rs 380 million, low cost of fund and loosen spread rate by NRB during that period.
However, in the review period of the current FY, NRB has lowered the spread rate of commercial banks, increased cost of fund due to huge competition for deposit collection among banks, provisioning of non-performing loan on the basis of real quotient and non recovery of loans dragged down the bank’s net profit, Adhikari added.
Due to these factors, although the financial report shows a huge difference in net profit, the regular income of the bank has remained balanced, he said.
In the review period of the current FY, the bank earned Rs 581.8 million in net profit and has maintained EPS of Rs 23.72. In the last FY, the bank had earned Rs 913.8 million in net profit and had EPS of Rs 13.54.
During the period, the bank has distributable profit of Rs 65.6 million compared to Rs 913.5 million of the review period of the last FY.
In the review period, the bank collected deposit of Rs 117.20 billion and extended loan of Rs 92.4 billion.
The bank with Rs 9.81 billion in paid-up capital has Rs 3.23 billion in share premium, Rs 3.08 billion in retained earnings and Rs 13.25 billion in reserve fund.
The bank has non-performing loan of 2.75 percent, capital fund ratio of 18.10 percent, cost of fund of 5.22 percent, base rate of 7.84 percent, net worth per share of Rs 299.81 and P/E ratio of 14.54 times.