Kanchan Development Bank reports 38% rise in net profit for Q3 of FY 2075/76; Operating profit falls by 5%

Mon, May 13, 2019 1:48 PM on Financial Analysis, Latest, Stock Market,

Kanchan Development Bank Limited ( KADBL ) has published its Q3 report for the fiscal year 2075/76. The bank has reported a profit of Rs 5.52 crore in Q3 2075/76. The net profit of the company has increased by 38% compared to Rs 3.98 crore in the Q3 2074/75.

The development bank has collected deposits of Rs 5 arba and has floated loans of Rs 4.47 arba in the Q3 2075/76. Deposits and Loan & advances of the company have grown by 48% and 47% respectively, compared to the corresponding quarter of the last fiscal year.

The net interest income of the company has increased by 33%, from Rs 12.7 crore to Rs 17 crore in Q3 2075/76.

Similarly, the operating profit has decreased by 5% to Rs 5.5 crore in Q3 2075/76. The development bank is able to hike its profit with the write-back of provision for possible losses of Rs 5.52 crore which was a mere Rs 3.98 crore in the corresponding quarter of last fiscal year.

The development bank's paid-up capital stands at Rs 53.13 crore with reserves of Rs 11.7 crore. The bank's NPL has decreased by 29% from 2.61 percent to 1.83 percent in Q3 2075/76.

The EPS and net worth of share stand at Rs 13.86 and Rs 122.06 in Q3 2075/76 respectively. The company has reported a P/E ratio of 11.47 times in Q3 2075/76.

Major Highlights of Q2 of 75/76

Particulars (In Rs '000) KADBL
Q3 2075/76 Q3 2074/75 Difference
Paid Up Capital 531,300 506,000 5.00%
Reserve & Surplus 117,216 88,777 32.03%
Deposits 5,086,626 3,435,414 48.06%
Borrowings - - -
Loans & Advances 4,473,147 3,036,636 47.31%
Net Interest Income 170,912 127,698 33.84%
Provision for possible losses 64,154 23,547 172.45%
Operating Profit 55,019 57,966 -5.09%
Net Profit 55,231 39,886 38.47%
NPL to total loan (%) 1.83 2.61 -29.89%
Annualized EPS (In Rs.) 13.86    
Net Worth per Share (In Rs.) 122.06    
P/E Ratio (In times) 11.47