Grand bank posted 73.07% loss minimization to Rs 33.06 crore in FY 71/72; NPL stood huge 36.20%
Thu, Aug 20, 2015 12:00 AM on Others,
ShareSansar, August 20;
Grand Bank Nepal Limited (GRAND) has reported a net loss of Rs 33.06 crore in the Q4. The commercial bank had net loss of Rs 1 arba 22 crore in the corresponding quarter of the previous fiscal year.
According to the unaudited financial report published today, the bank has an operating loss of Rs 91.66 crore. With mobilization of Rs 8.20 arba in deposits, the bank has extended loan of Rs 9.56 arba. The net interest income is Rs 25.53 crore in Q4.
GRAND has a paid up capital of Rs 2 arba with loss of Rs 1.37 arba in reserves.
The Capital Adequacy ratio of the bank is still below than prescribed by NRB. In Q4 the Capital Adequacy ratio stands at 6.51percent.The bank has to upgrade its Capital Adequacy ratio to 10 to be healthy one. In the corresponding quarter of the previous fiscal year, its Capital Adequacy ratio was 6.17 percent.
However, the bank’s non- performing loan has increased to 36.20% from 20.09 % in Q4. Credit to Deposit ratio stands at 116.45 %.
Grand’s EPS stands at Rs16.53, net worth per share stands at Rs31.20 and P/E ratio stands at 11.13 times.
Prabhu Bank Limited (PRVU) acquiring Grand Bank Limited (GRAND) has been the first ever acquisition of a commercial bank by another in Nepal. The meeting of both the companies has approved the per share value fixed by the Due Diligence Audit (DDA) of Prabhu and Grand Bank at Rs 121.45: Rs 65.58 respectively. After the acquisition the paid up capital of Prabhu Bank will reach to Rs 5.92 arba from 3.208 arba at present.
