By the second quarter of the current FY, the bank earned net profit of Rs 2.01 billion. The net profit increased by 33 percent i.e. Rs 500 million during the review period. In the corresponding period of the last FY, the bank earned the net profit of Rs 1.51 billion.
Similarly, the operating profit of the bank also increased by 36 percent to Rs 2.90 billion compared to the review period of the last FY. Likewise, the bank increased its deposit by Rs 6 billion to Rs 186 billion and loan extension by Rs 15 billion to Rs 165 billion.
According to the bank, it is diversifying its loan and investments towards SME lending as well as retail financing having low risk as per its strategy. The bank issued 72 percent of such financing out of total loan and investment. Similarly, it also fulfilled a minimum of 25 percent priority sector loan requirement as per NRB directive. As per diversification strategy, the bank has maintained below 5 percent lending of total loans to top 10 biggest borrowers.
The bank informed that it has adopted a strategy of diversification in the collection of deposits as well. Currently, the bank has call deposit of 9.4 percent. The bank managed to deduct its call deposit by Rs 6 billion in the last six months. Despite the call deposit decreased by Rs 6 billion, the bank succeeded to increase its total deposit by Rs 6 billion. The top 10 biggest depositors contribute merely 11 percent in total deposit.
The bank increased its EPS by 21 percent to Rs 41.61 and core capital by 24 percent to 25.17 percent.
“The bank is serving more than 2.1 million customers through 313 branch offices, 426 ATMs, 103 extensions and 45 branchless banking units. The bank paid nearly Rs 3.15 billion tax to the government in the last FY. The bank is operating branch offices in remote areas like Mugu, Kalikot, Bajhang, Rukum, Jumla and Salyan where only handful of BFIs have reached and above 34 local levels with no BIFs for financial inclusion,” reads the statement.
