Grand shocks clients, shareholders: net loss of Rs 1.6 arba; NPL rises to 19%

ShareSansar, August 17:

Grand Bank Nepal Limited has reported almost 15 times net profit drop in the last fiscal year 2070/71.

According the unaudited financial report the commercial bank has just published for the fourth quarter, it has posted a net loss of Rs 1.6 arba by the end of the last fiscal year, down from net profit of Rs 11.73 crore at the end of the previous fiscal year 2069/70.

ADBL was the other bank to shock its clients and shareholders by showing a staggering figure of Rs 3.3 arba as staff expense.

Grand Bank’s profit growth was largely stunted by Rs 1.93 arba it had to provision for possible loss — probably due to its heavy focus on the still-sluggish realty sector.

On the other hand, it managed to write back just Rs 5.27crore of the loan it had provisioned for possible loss.

Grand’s top officials could not been contacted for comment as the unaudited financial report was published yesterday -- on Saturday, and even today is a public holiday.

Even its core business has suffered as its net interest income has dropped to Rs 38.51 crore, down from Rs 51.86 crore in the corresponding quarter. This is due to higher interest expenses in the last fiscal year as compared to the previous fiscal year.

It, however, mobilized Rs 21.20 arba in deposit and Rs 15.14 arba in loan as compared to Rs 19.32 arba in deposit and Rs 14.52 arba in loan in the fourth quarter of the previous fiscal year.

Another worrisome aspect of the quarterly report is that Grand Bank’s non-performing loan has drastically surged to 19.09 percent of the total loan, up from just 3.52 in the corresponding quarter.

Its EPS (annualized) stands at 9.44 and net worth per share at Rs 118.43.