Excel Development Bank's Net Profit Soars; Distributable Profit Turns Positive, EPS at Rs. 24.76

Excel Development Bank Limited (EDBL) has delivered a remarkable financial performance in the fourth quarter of FY 2082/83, reporting a net profit of Rs. 30.94 crores, a staggering 22,784.80% increase from Rs. 13.51 lakhs recorded in the corresponding quarter of the previous fiscal year. The sharp rise in profitability was mainly driven by higher net interest income, lower funding costs, and improved operating efficiency.

The bank's net interest income grew by 14.72% year-on-year to Rs. 64.88 crores, up from Rs. 56.55 crores a year earlier. Total deposits increased by 12.63% to Rs. 1.85 Arba, while loans and advances expanded by 8.83% to Rs. 1.31 Arba. During the review period, the bank booked impairment charges of Rs. 19.42 crores, which weighed on its overall earnings.

Operating profit witnessed an exceptional jump, rising to Rs. 53.95 crores from Rs. 11.21 crores in the previous year. Retained earnings declined to Rs. 17.97 crores, while total reserves increased to Rs. 78.41 crores. The bank also strengthened its capital position, with the capital adequacy ratio improving to 14.63% from 12.58% a year ago. Meanwhile, the cost of funds declined to 2.89% from 3.87%, while the non-performing loan (NPL) ratio stood at 4.57%.

Reflecting the significant improvement in earnings, earnings per share (EPS) surged to Rs. 24.76 from Rs. 0.11 in the previous year, while net worth per share rose by 14.27% to Rs. 177.85. Based on the quarter-end market price of Rs. 561.30 per share, the bank's price-to-earnings (P/E) ratio stood at 22.67 times.

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