Despite huge forex loss, Janata Bank offers 8.4 % dividend

ShareSansar, November 24:

Janata Bank Nepal Limited has decided to offer 8.42 percent dividend – 3 percent bonus share and 5.42 percent cash – to the shareholders from the net profit it earned in the last fiscal year 2069/70.

Publishing a notice today, the young commercial bank stated that it is holding its 4th Annual General Meeting in the capital on December 15 to formally endorse the proposed dividend.

This has come as a relief to the shareholders who were worried about the dividend since the bank had reported a significant loss in its first quarterly report published a few days back.

The proposed bonus share is aimed at soaring its paid-up capital from Rs 2 arba to Rs 2.06 arba.

Janata Bank had reported a whopping 320 percent loss releasing its unaudited first quarter report on November 17.

The commercial bank suffered a loss of Rs 5.98 crore in the first quarter of the current fiscal year 2070/71 compared to Rs 2.71 crore net profit in earned in the corresponding quarter last year.

Despite earning a net interest income of Rs 11.9 crore in the first quarter as against just 9.39 crore in the corresponding quarter, the profit was negated by a staggering foreign exchange loss of 8.82 crore.

The bank’s operational loss eventually mounted to Rs 6.03 crore , compared to Rs 4.26 crore profit in the corresponding quarter.

Its non performing loan has also increased by more than a percentage point -- from 0.4 percent to 1.5 percent.

Janata Bank Limited had mobilized Rs 13.59 arba in deposit and Rs 11.98 arba in loan in the first quarter compared to Rs 9.20 arba in deposit and Rs 9 arba in loan in the corresponding quarter.

Its EPS (annualized) stands at Rs 11.97 and net worth per share at Rs 27.14.