Rastriya Banijya Bank Reports 175.52% Surge in Net Profit to Rs. 1.64 Arba in Q1 FY 2083/84; Impairment Charges Down By 63.51%

Rastriya Banijya Bank Limited has reported a significant 175.52% growth in net profit for the first quarter of FY 2083/84, reaching Rs 1.64 Arba compared to Rs 59.87 Crores in the corresponding quarter of the previous fiscal year. The bank's paid-up capital remained unchanged at Rs 15.64 Arba, while retained earnings increased by 27.43% to Rs 13.72 Crores and reserves grew by 3.44% to Rs 40.73 Arba.

During the quarter, the bank's total deposits increased by 4.16% to Rs 7.15 Kharba, while loans and advances grew by 2.51% to Rs 3.40 Kharba. Net Interest Income surged by 37.46% to Rs 4.01 Arba from Rs 2.92 Arba in the corresponding period. Personnel expenses increased by 5.56% to Rs 1.51 Arba, while impairment charges declined sharply by 63.51% to Rs 35.57 Crores.

The substantial rise in net interest income and decline in impairment charges contributed to a 175.91% increase in operating profit, which reached Rs 2.35 Arba compared to Rs 85.24 Crores in the corresponding quarter.

Rastriya Banijya Bank's distributable profit after profit/loss appropriation and regulatory adjustments stood at Rs 13.72 Crores, compared to Rs 21.47 Crores in the corresponding quarter. The bank's capital adequacy ratio stood at 11.53%, while the Non-Performing Loan (NPL) ratio increased slightly to 3.89% from 3.83%. The cost of funds declined to 2.81% from 3.16%.

The bank's annualized Earnings Per Share (EPS) surged to Rs 42.20 from Rs 15.32, marking a 175.52% increase. Meanwhile, net worth per share increased by 2.94% to Rs 369.23 from Rs 358.68 in the corresponding quarter.

Report:

* Figures are of Immediate Previous Year Quarter Ending

Major Highlights:

Particulars (In Rs '000) Rastriya Banijya Bank Limited
Q1 2083/84 Q1 2082/83 Difference
Paid Up Capital 15,637,377.06 15,637,377.06* 0.00%
Share Premium 0.00 0.00  
Retained Earnings 1,372,398.60 1,076,957.80* 27.43%
Reserves 40,727,719.25 39,373,522.18* 3.44%
Deposit 714,673,199.59 686,135,600.17* 4.16%
Loans & Advances  340,426,619.08 332,083,450.93* 2.51%
Net Interest Income 4,014,672.99 2,920,572.55 37.46%
Personnel Expenses 1,506,696.81 1,427,368.29 5.56%
Impairment Charges 355,713.84 974,935.00 -63.51%
Operating Profit 2,351,850.25 852,410.20 175.91%
Net Profit 1,649,637.87 598,733.31 175.52%
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  1,372,398.60 214,725.03 -
Capital Adequacy (%) 11.53 11.64 -0.95%
NPL (%) 3.89 3.83  
Cost of Fund (%) 2.81 3.16 -11.08%
Annualized EPS  (In Rs.) 42.20 15.32 175.52%
Net Worth per Share (In Rs.) 369.23 358.68 2.94%