The decline in net profit can be attributed to increase in impairment charge despite increase in net interest income. During the period, the distributable profit of the bank has also decreased to Rs 823.9 million from Rs 1 billion in the previous FY.
In the review period, the bank collected deposits of Rs 88.51 billion and extended loan of Rs 79.16 billion. The bank earned Rs 2.88 billion in net interest income during the period. Similarly, it earned operating profit of Rs 1.45 billion.
In the review period, the non-performing loan of the bank increased to 1.46 percent from 1.13 percent. The bank has impairment charge of 677.2 million.
The bank with paid-up capital of Rs 9.08 billion has a reserve fund of Rs 3.39 billion and a shareholders fund of Rs 877.4 million.
Along with the net profit, the EPS of the bank has also declined. The EPS has declined to Rs 12.27 compared to Rs 17.79 of the previous FY. The bank logged base rate of 9.04 percent and spread rate of 4.03 percent.
