The decline in net profit can be attributed to decrease in net interest income and an increase in non-performing loans of the bank.
During the period, the distributable profit of the bank has also decreased by Rs 693 million to Rs 3.04 billion in the last FY.
In the review period, the bank collected deposits of Rs 190 billion and extended loan of Rs 148 billion. The bank earned Rs 7.02 billion in net interest income during the period. Similarly, its earned operating profit of Rs 5.09 billion.
In the review period, the non-performing loan of the bank increased to 0.97 percent from 0.74 percent.
The bank with paid-up capital of Rs 10.09 billion has a reserve fund of Rs 12.66 billion and a shareholders fund of Rs 3.04 billion.
Along with the net profit, the EPS of the bank has also declined. The EPS has declined by Rs 13.33 to Rs 37.24 in the review period. During the period, the bank logged P/E ratio of 20.54 times. However, while calculating EPS with the paid-up capital and net profit, the bank has EPS of Rs 35.32 and P/E ratio of 21.66 times.
The bank has a spread rate of 3.73 percent and a base rate of 7.32 percent.
