Machhapuchchhre Bank Posts Rs. 1.01 Arba Net Profit in Q2; EPS Rises to Rs. 16.73 as Cost of Fund Drops to 3.56%
Sun, Jan 25, 2026 11:16 AM on Financial Analysis, Highlight News, Company Analysis,
Machhapuchchhre Bank Limited (MBL) has reported a net profit of Rs. 1.01 Arba in the Second quarter of FY 2082/83, reflecting a 25.25% incline compared to Rs. 80.73 crore earned in the same period of the previous fiscal year.
The bank’s net interest income stood at Rs. 2.94 Arba, surged by 4.16% from Rs. 2.83 Arba last year. Operating profit fell down by 10.22% to Rs. 14.56 crore, while impairment charges escalated to Rs. 57.42 crore compared to Rs. 20.47 crore in the same quarter of FY 2081/82. Personnel expenses increased moderately by 8% to Rs. 1.36 Arba.
Deposits reached Rs. 2.04 kharba, up by 10.79%, while loans and advances grew by 8.89% to Rs. 1.54 kharba. The bank’s reserves increased by 10.49% to Rs. 6.98 arba, however, retained earnings sharply dropped at Rs.43.63 crore compared to Rs. 93.63 crore in the previous year. As a result, distributable profit after regulatory adjustments stood at Rs. 43.63 crore.
The capital adequacy ratio decreased to 12.16% from 13.26%, while the cost of funds improved significantly, dropping by 26.14% to 3.56%. Annualized Earnings per share (EPS) stood at Rs.16.73, up from Rs. 13.89, and net worth per share decreased to Rs. 161.63. The bank’s shares were priced at Rs.227.18 at the end of the quarter, with a price-to-earnings (P/E) ratio of 13.61 times.
Major Financial Highlights:
* Figures are of the Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Machhapuchchhre Bank Limited | ||
|---|---|---|---|
| Q2 2082/83 | Q2 2081/82 | Difference | |
| Paid Up Capital | 12,086,211.56 | 11,621,357.27* | 4.00% |
| Share Premium | 30,881.77 | 30,881.77* | 0.00% |
| Retained Earnings | 436,380.13 | 936,365.85* | -53.40% |
| Reserves | 6,981,825.55 | 6,318,762.34* | 10.49% |
| Deposits | 204,047,175.13 | 184,176,049.90* | 10.79% |
| Loans and Advances | 154,009,533.46 | 141,436,048.91* | 8.89% |
| Net Interest Income | 2,941,016.74 | 2,823,670.41 | 4.16% |
| Personal Expenses | 1,366,028.69 | 1,264,791.00 | 8.00% |
| Impairment Charges/(Reversal) for loans and advances | 574,299.33 | 204,702.75 | 180.55% |
| Operating Profit | 1,456,891.45 | 1,622,797.25 | -10.22% |
| Net Profit | 1,011,173.46 | 807,327.24 | 25.25% |
| Distributable Profit/(loss) after P/L Appropriation and Regulatory Adjustments | 436,380.13 | 166,290.12 | 162.42% |
| Capital Adequancy(%) | 12.16 | 13.26 | -8.30% |
| Non-Performing Loan | 4.25 | 4.54 | -6.39% |
| Cost of Fund | 3.56 | 4.82 | -26.14% |
| Annualized EPS (In Rs.) | 16.73 | 13.89 | 20.43% |
| Net Worth per Share (In Rs.) | 161.63 | 162.70 | -0.65% |
| Qtr end PE Ratio (times) | 13.61 | - | - |
| Qtr End Market Price | 227.8 | - | - |
