Higher Operating Expenses Affects the Financial Ratios of Narayani Development Bank; Reports Net Loss of Rs. 1.66 Crores for Q2
Fri, Jan 20, 2023 1:15 PM on Latest, Financial Analysis, Stock Market,
Narayani Development Bank Limited (NABBC) has published its Q2 report with a net loss of Rs. 1.66 Crores. In the year 2020, Narayani Development Bank had been free from Nepal Rastra Bank's tag of Crisis-Ridden Company. Despite being an un-problematic bank, the bank generally reports losses every year.
The paid-up capital of the company stood at Rs. 26.24 Crores and reserves stood at Rs. 11.79 Crores till Q2. The company did not distribute dividends for FY 2078/79.
The deposit from customers stood at Rs. 59.67 crores which had an incline of 77.24% in this quarter while loans and advances stood at Rs. 53.11 Crores, which has increased by 55.30%.
The net interest income (core business revenue) of the bank increased to Rs. 90.74 lakhs in this quarter from Rs. 16.86 lakhs. Despite having an incline in core business revenue by 438.03%, the company is operating in losses due to the operating expenses such as depreciation and personnel expenses.
The company also reported impairment charges of Rs.53.04 lakhs which affected profitability of the company.
The bank’s EPS stood at Rs. - 12.09 and its net worth per share stood at Rs. 53.23.
Major Highlights:
| Particulars (In Rs '000) | Narayani Development Bank Limited | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 262,467.60 | 262,467.60 | 0.00% |
| Share Premium | 10,101.37 | 10,101.37 | 0.00% |
| Retained Earnings | -250,811.20 | -234,655.03 | |
| Reserves | 117,966.69 | 113,433.00 | 4.00% |
| Deposits | 596,709.86 | 336,672.29 | 77.24% |
| Loans & Advances | 531,199.28 | 342,037.85 | 55.30% |
| Net Interest Income | 9,074.88 | 1,686.68 | 438.03% |
| Personnel Expenses | 9,850.48 | 7,017.36 | 40.37% |
| Impairment Charges/(Reversal) for loans and advances | 5,304.58 | -2,834.20 | |
| Operating Profit | -16,629.00 | 5,998.88 | |
| Net Profit | -16,629.00 | 5,998.88 | |
| Capital Adequacy (%) | 15.73 | 30.90 | |
| Cost of Fund (%) | 9.49 | 6.72 | |
| EPS (In Rs.) | -12.67 | 4.57 | |
| Net Worth per Share (In Rs.) | 53.23 | 57.66 | |
| Qtr End Market Price | 448 | - | - |
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