Know the financial performance of Development Banks till 2nd month of FY 2076/77; Muktinath Bikas Bank has highest deposits and loans

Sun, Nov 3, 2019 11:09 AM on Exclusive, Financial Analysis, Latest, Others,

Nepal Rastra Bank (NRB) has published the cumulative financial of Development Banks till the first two month of the new fiscal year 76/77. Development Banks are recognized as Class ‘B’ financial institutions by NRB. The report displays all financials of development banks till the month of Bhadra. (All the data are taken from NRB monthly reports)

DEPOSITS

On comparing the banks in terms of deposits collected, Muktinath Bikas Bank (MNBBL) tops the list with deposits worth Rs.46.98 Arba followed by Garima Bikas Bank (GBBL) with deposits worth Rs.33.91 Arba till the month of Bhadra. 13 development banks posted deposits more than Rs.10 Arba.

Narayani Development Bank (NABBC) posted the lowest amount of deposits worth Rs.2.57 Crore. The second last on the list was Corporate Development Bank (CORBL) with deposits worth Rs.22.37 Crore till Bhadra end. Including the two mentioned, four development banks have deposits below Rs.1 Arba.

LOANS AND ADVANCES

After lending loans and advances worth Rs.40.13 Arba, MNBBL stands at top among the development bank industry. GBBL trails behind with loans and advances worth Rs.29.55 Arba. In total 12 banks have lent more than Rs.10 Arba.

Similar to deposits, NABBC and CORBL remain at the bottom of the list with loans worth Rs.1.04 Crore and Rs.35.87 Crore. A total of four banks have lending below Rs.1 Arba till Bhadra end.

NET PROFITS

Only six development banks managed to report a net profit till Bhadra end while the rest of the banks have reported a loss. Deva Bikas Bank (DBBL) has the highest profit in the industry at Rs.4.41 Crore followed by MNBBL at Rs.3.33 Crore. NABBC posted the lowest profit at Rs.30 Thousand.

Lumbini Bikas Bank (LBBL) managed to report the highest loss at Rs.20.99 Crore followed by Gandaki Bikas Bank (GDBL) with net loss of Rs.19.40 Crore. Sahara Bikas Bank (SHBL) has the lowest loss in the industry at Rs.19 Lakhs.

NET INTEREST INCOME

From the report published by NRB, the interest expenses of each development bank was deducted from their respective interest income to derive the net interest income in the review period.

MNBBL and DBBL have the highest net interest income of Rs.16.77 Crore and Rs.13.74 Crore respectively. Apart from the two, only 11 development banks have positive net interest income, Salapa Development Bank with the lowest at Rs.80 Thousand.

The remaining 15 development banks reported a negative net interest income till the end of Bhadra. GDBL and LBBL have the highest negative net interest income worth Rs.15.10 Crore and Rs.14.98 Crore respectively.