Astounding profit growth of Nepal Bank by 80.79% to Rs 1.89 arba in Q2; Reserve increases to Rs 2.26 arba

Nepal Bank Limited (NBL) has posted massive net profit rise by 80.79 percent in the second quarter of the fiscal year 2073/74. As per the unaudited financial report published by the commercial bank today, its net profit has increased to Rs 1.89 arba in second quarter of the FY 2073/74, up from Rs 1.04 arba in the corresponding quarter of the previous fiscal year 2072/73. The bank has amassed a huge deposit base of Rs 84.83 arba till the end of Q2 of FY 2073/74 compared to Rs 80.22 arba in the corresponding quarter of the previous fiscal year. Likewise, it has extended loans of Rs 70.81 arba, a rise from Rs 55.13 arba in the corresponding quarter last year. Its paid up capital remains at Rs 6.49 arba. In addition, the reserve of the commercial bank has increased to Rs 2.26 arba in second quarter from a negative loss of Rs 1.54 arba. NBL’s operating profit has also doubled in Q2 with its operating profit increment up to Rs 1.38 arba in second quarter up from Rs 64.36 crore in the corresponding quarter in the previous fiscal year. Likewise, its net interest income has risen to Rs 2.54 arba in Q2 from Rs 1.81 arba in the corresponding quarter of the previous fiscal year. NBL’s Non-Performing Loan (NPL) has declined to 2.85% from 3.85% in Q2. Its annualized Earnings per Share (EPS) has declined to Rs 58.31 in Q2 from Rs 71.76 in Q1. Its net worth per share at Rs 135.54 and P/E ratio is at 6.95 times. It is going to issue 23.74% right share, after which its paid up capital will reach Rs 8.05 arba, thereby meeting the minimum paid up capital requirement of Rs 8 arba by the end of FY 2073/74.