Guheswori Merchant Banking and Finance reports 46% rise in net profit; NPL down to 0.76%

Guheswori Merchant Banking and Finance Company Limited (GMFIL) has registered a net profit rise of 46.36% in the second quarter of the current FY 2073/74. According to the unaudited financial report published by the finance today, its net profit has increased to Rs 3.22 crore in second quarter, up from Rs 2.20 crore in the corresponding quarter of the previous fiscal year. GMFIL’s net interest income has risen to Rs 5.30 crore in Q2 as compared to Rs 3.17 crore in the corresponding quarter of the last fiscal year. As of Q2, it has a paid up capital of Rs 43.77 crore with a reserve of Rs 15.98 crore. The bank also collected deposits of Rs 2.32 arba in Q2, down from Rs 1.55 arba crore in the corresponding period last year. Likewise, it has extended loans and advances of Rs. 1.88 arba  in Q2 whereas in the same period last year, the figure stood at Rs 1.44 arba.  The credit-deposit ratio (CDD) of this finance company stands at 64.31%.  The NPL of the company has dropped to 0.76% from 2.29% in the corresponding quarter of previous year. It had issued 50% right shares,  and bonus shares of 12%. After the capitalization of right and bonus, its paid up capital will reach Rs 49.34 crore. As per NRB’s directive for all national level finance companies to increase their paid up capital to a minimum of Rs 80 crore by the end of FY 2073/74, GMFIL will need to increase its capital by further 62%. GMFIL’s annualized Earnings per Share (EPS) stands at Rs 14.71, net worth per share at Rs 136.52 and P/E ratio at 15.23 times.