Janata Bank's growth down by over cent percent in fourth quarter -- thanks to forex loss

ShareSansar, August 5:

Janata Bank Nepal Limited has reported a massive – over 100 percent -- profit drop in the last fiscal year 2070/71.

According to the unaudited financial report for the fourth quarter published today, the commercial bank has stated that its net profit has dropped to Rs 8.81 crore, down from Rs 19.73 crore at the end of the previous fiscal year 2069/70.

As in the past few quarters, the profit was affected largely due to a huge foreign exchange loss the bank suffered in the last fiscal year.

Insofar as its core business is concerned, it is not bad at all.

Janata’s net interest income grew to Rs 53.78 crore in the fourth quarter from Rs 48.26 crore in the corresponding quarter.

It mobilized Rs 18.44 arba in deposit and Rs 15.98 arba in loan as compared to Rs 13.54 arba in deposit and Rs 12.07 arba in loan it had mobilized in the previous fiscal year.

Though it also managed to write back 32.02 lakh from the amount it had earlier provisioned for possible loss, it also had to provision Rs 13.19 crore for possible loss in the fourth quarter.

Another worrying sign in Janata’s financial report is that its non-performing loan has risen to 1.02 percent – up from 0.23 percent.

Its EPS is now proced at Rs 4.28, P/E ratio at 75 times while net worth per share stands at Rs 107.30.