Dwarfed by Rs 12.77 crore provisioned for losses, Civil Bank's profit drops by 10%

ShareSansar, May 12:

Civil Bank Limited, which had posted marginal profit growth in the second quarter, has reported 10.08 percent drop in net profit in third quarter of the current fiscal year 2070/71 largely due to huge amount it has been provisioning for the possible losses for the past few months.

Publishing the unaudited financial report for the third quarter today, the commercial bank, which has recently merged with couple of other BFIs, has stated that its net profit has dropped to Rs 7.58 crore in the third quarter, down from Rs 8.43 crore in the corresponding quarter.

Civil’s growth was largely dwarfed by a huge amount it provisioned for the possible losses, which stands at staggering Rs 12.77 crore.

Otherwise, its core business was pretty satisfactory in the third quarter, too. Civil’s net interest income rose to Rs 35.37 crore, up from just Rs 32.65 crore in the corresponding quarter.

It mobilized Rs 18.43 arba in deposit and Rs 15.29 in loan in the third quarter as compared to Rs 11.53 arba in deposit and Rs 10.53 arba in loan in the corresponding quarter.

Its NPL has also increased significantly to 1.57 percent up from 0.61 percent.

Civil’s EPS (annualized) stands at 5.06 and the net worth per share at 105.70.