Kumari Bank posts 17% net profit rise in Q4 – thanks to huge loan write back

ShareSansar, August 11:

Kumari Bank Ltd has posted a humble profit growth of 17 percent in the fourth quarter of last fiscal year 2070/71.

According to the fourth quarterly report of the bank published on Saturday, the net profit increased to 34.09 crore on the quarter end of last fiscal year, up from Rs 29.14 crore in the corresponding previous year quarter ending.

Though the net interest income of the bank dropped by Rs 14.26 crore in the quarter ending, the write back of provision for possible loss has contributed in the rise of the bank’s profit. The bank has written back the provision for possible loans worth Rs 7.22 crore in the fourth quarter period.

KBL has mobilized Rs 27.58 arab on deposits and Rs 22.81 arba on loans and advancement in the last fiscal year, up from Rs 25.32 arab on deposit and Rs 28.97arba on loan on the previous year.

Another good part of the unaudited report is that it shows the bank has contained its average interest spread rate to 3.62 percent.
 
The failure of the bank to maintain Rs 2 arba paid-up capital requirement of the
Nepal Rastra Bank (NRB) will mean that the KBL will have to face the central regulator’s action.  KBL’s paid-up capital currently stands at Rs 1.83 arba.
Non-performing loan of the bank also inched up to 3.19 percent in last year from 2.89 percent.

Its EPS now stands at Rs 18.65, P/E ratio at 28.75 times while net worth per share stands at Rs 163.95.