Four Banks’ profits set to receive huge boost from sale of collateral; Sunrise alone could boost its profits by 25%

The five ropani land in Kamaladi, Kathmandu has been sold for Rs.59 crores. The land has been bought by NMB Bank.

Of this 59 crores, Rs.21.5 crores has been taken by Gurkha Developemnt Bank Nepal Ltd as it had paid advance for its failed attempt to buy the land. The troubled financial institution which is in merger process with Kathmandu Finance Ltd., will receive a huge relief from the sale.

Three banks, NIC Asia, Sunrise and Prime had accepted the real estate plot as collateral from Krishi Premura Pvt. Ltd. The company had planned to build a business tower in the plot.

According to an official from Sunrise Bank, all three banks received about 12 crores each from the sales of the land. This will contribute about Rs.10 crores to the profits of the Bank in this FY.

Sunrise Bank had a net profit of 47.44 crores according to the unaudited Q4 2072 report. The 12 crore write back is equivalent to about 25% of the bank’s net profit till Q4 last year. NIC Asia and Prime Commercial Bank had a profit of Rs.69.25 crores and Rs.80.14 crores respectively. This recovery is sure to boost the net profit of all three banks this year.