Annual Review of Nepal SBI Bank: NPA 0.26%, Net profit Rs 1.06 arba, 27% bonus & Right shares up to Rs 2.6 arba

Nepal SBI Bank Ltd. shared its annual progress for the fiscal year 2071/72 during a press meet in Kathmandu. The bank's key efficiency parameters including major achievements during the last fiscal year are as follows:

• Net Interest Income grew from Rs. 1.74 arba to Rs 2.04 arba, registering a growth of 17.33%
• Recorded all time high net profit of Rs 1.06 arba
• In absolute terms, the operating profit increased to Rs 1.63 arba
• Non Interest Income grew to Rs 76.75 crores from Rs 64.55 crores, Return on assets improved from 1.5% to 1.7%, and cost of fund decreased to 17% from 3.99%
• Bank achieved CD ratio of 78.54%, Capital Adequacy Ratio (CAR ) reached 14.03% and net NPA ratio of 0.26%
• In FY 2071/72 bank opened 53,244 savings account, number of E-bankers rose to 33,884 and issuance of cards crossed 4.82 lacs
• The bank also extended advance of Rs. 1.35 arba under Small and Medium Enterprise (SME) Business portfolio
• The bank collected deposits of Rs 51.62 arba of deposit and loan and loan & advances of Rs 39.97 arba as at the close of the year

The BoD of Nepal SBI bank has proposed distribution of Bonus Shares @27.00 % and Cash Dividend @ 1.42 %(for tax purpose) out of the net profit earned last year and the profit earned during previous years, subject to approval of upcoming 22nd AGM of the Bank. Further the meeting has also decided to move a special resolution to the forthcoming AGM for issuance of right shares upto face value of Rs. 260 crore and delegate the authority to the Bank’s Board to (a) fix premium price for the rights issue within the ceiling of net-worth per share as per the last audited financial statements (b) approve the ratio for issuance of shares on rights basis, issuance price and number of tranches for the rights issue keeping in view the strategic considerations and business opportunities at the time of issue of right shares. The 22^nd AGM of the bank is scheduled to be held on Magh 24, 2072 (February 7, 2016) at Tribhuwan Army Officers Club, Kathmandu from 11 am.