Karnali Development Bank Reports Net Loss Of Rs. 1.9 Crores In Q3 Of FY 78/79; What Are The Reasons For Such Loss?
Thu, May 26, 2022 4:00 PM on Latest, Financial Analysis, Stock Market,
Karnali Development Bank Limited (KRBL) has published the unaudited quarterly report for the third quarter of FY 2078/79. The development bank for this quarter incurred a loss of Rs. 1.9 Crores. In the Q3 of the previous fiscal year, the company incurred a net profit of Rs. 1.04 Crores.
The management states that the reason behind drastic changes in the profit figure for this quarter is mainly due to the changes in the office operations because of liquidity volatility in the banking sector, lack of investment opportunities, policy changes by agencies, and competition. In addition, future policy changes by the regulatory body are likely to affect the bank’s profit.
Coming towards the loans and advances of the company, it stood at Rs. 3.29 Arba from Rs. 3. 01 Arba of the corresponding quarter of the previous year. The deposit increased to Rs. 4.39 Arba in this quarter.
The Net Interest income (Core business revenue) for the company decreased by 12.51% to Rs. 8.6 crores. The company incurred an operating loss of Rs. 1.9 Crores.
The bank posted a paid-up capital of Rs. 50.28 crore in this quarter which was same during the previous relevant quarter. The reserves of the bank stood at Rs. 14.4 Crore. Whereas, Retained earning are negative Rs 10.43 crores.
The NPL of the bank which was previously at 3.13%, currently stands at 3.68%. The bank posted EPS of Rs. – 3.82 and net worth per share of Rs. 108.86 for the end of Q3 of FY 2078/79.
Major Financial Highlights:
| Particulars (In Rs '000") | Karnali Development Bank Limited | ||
|---|---|---|---|
| Q3 2078/79 | Q3 2078/79 | Difference | |
| Share Capital | 502,830 | 502,830 | 0.00% |
| Share Premium | 0 | 1,514 | |
| Retained Earnings | -104,307 | 14,604 | |
| Reserves | 144,557 | 22,343 | 546.99% |
| Deposits from Customers | 4,397,268 | 4,451,739 | -1.22% |
| Loans & Advances to customers | 3,299,135 | 3,019,349 | 9.27% |
| Net Interest Income | 86,010 | 98,308 | -12.51% |
| Impairment Charge/(Reversal) | 34,965 | 29,793 | 17.36% |
| Personnel Expenses | 43,933 | 39,348 | 11.65% |
| Operating Profit | -19,221 | 10,439 | |
| Profit/(Loss) for the Year | -19,221 | 10,439 | |
| Total Comprehensive Income | -19,221 | 10,439 | |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -110,223 | -82,972 | |
| Capital Adequacy Ratio (CAR) | 11.12 | 12.35 | -9.96% |
| NPL | 3.68 | 3.13 | 17.57% |
| CCD (as per NRB Directives) | 72.61 | 67.82 | 7.06% |
| Cost of Fund (%) | 8.26 | 6.79 | 21.65% |
| Interest Rate Spread (%) | 4.78 | 6.6 | -27.58% |
| Base Rate (%) | 11.36 | 9.59 | 18.46% |
| Annualized EPS (In Rs.) | -3.82 | 2.08 | |
| Net Worth per Share (In Rs.) | 108.86 | 107.65 | 1.12% |
| Qtr End PE Ratio (times) | -95.48 | - | - |
| Qtr End Market Price | 365 | - | - |
.png)
