LBL’s profit drops by 14.6% as net spread is slashed to 3.83%; NPL above 2%

ShareSansar, May 11:

Laxmi Bank Limited stated 14.60 percent reduction in its net profit for the third quarter of the current fiscal year 2070/71.

In the unaudited financial report published today, the bank has stated a slight decrease in the net profit to Rs 23.57 crore as compared to Rs 27.59 crore of corresponding quarter.

The decline in the net profit is mainly due to drop in the bank’s net interest income. Moreover, the bank’s net interest spread has also decreased to 3.83 percent from 4.17 percent. Hence there is 12.12 percent drop in the net interest income.  In the corresponding quarter it was Rs 61.67 crore and in this quarter it has dropped to Rs 54.19 crore.

The deposits have increased to Rs 29.56 arba from Rs 24.17 arba and the loan also reached to Rs 23.01 arba from 19.15 arba in this quarter.

However, its NPL has increased to 2.19 percent as compared to the corresponding quarter of last year which was 1.41 percent. The provision for possible loss has increased to Rs 13.42 crore from Rs 12.74 crore.

The EPS stands at Rs 18.38, the net worth per share at Rs 174.39 and the P/E ratio is 25.30 times.