Although the company increased its net interest income, increase in its non-performing loan and failure to recover the bad debt affected its net profit.
During the period, the company increased its net interest income by Rs 10.7 million to Rs 61.8 million. Similarly its operating profit increased by Rs 3.2 million to Rs 34.5 million.
Increase in non-performing loan leading to huge allocation in provision for possible loss contracted its operating profit.
In the review period, the non-performing loan of the company increased from 0.98 percent to 2.72 percent resulting increase in provision for possible losses to 8.8 million compared to 7.3 million of the last FY.
The company with Rs 402.3 million in paid-up capital has reserve fund of Rs 152 million. It collected deposit of Rs 1.56 billion, borrowed Rs 2.83 billion and extended loan of Rs 4.65 billion.
It logged EPS of Rs 21.74, net worth per share of Rs 137.80 and P/E ratio of 42.02 times.
