Machhapuchchhre Bank Reports Net Profit of Rs. 41.79 Crore; EPS Falls to Rs. 13.83 and NII Declines Slightly in Q1 FY 2082/83
Fri, Nov 7, 2025 9:17 AM on Financial Analysis, Highlight News, Company Analysis,
Machhapuchchhre Bank Limited (MBL) has reported a net profit of Rs. 41.79 crore in the first quarter of FY 2082/83, reflecting a 16.95% decline compared to Rs. 50.32 crore earned in the same period of the previous fiscal year. The decline in profitability was largely due to a rise in impairment charges and a drop in operating profit.
The bank’s net interest income stood at Rs. 145.89 crore, slightly lower by 1.60% from Rs. 148.27 crore last year. Operating profit fell sharply by 40.15% to Rs. 59.84 crore, while impairment charges surged to Rs. 46.08 crore compared to a reversal of Rs. 4.34 crore in the same quarter of FY 2081/82. Personnel expenses increased moderately by 3.20% to Rs. 70.31 crore.
Deposits reached Rs. 1.93 kharba, up by 5.08%, while loans and advances grew by 5.10% to Rs. 1.48 kharba. The bank’s reserves increased by 5.78% to Rs. 6.68 arba; however, retained earnings turned negative at Rs. -11.42 crore compared to Rs. 93.63 crore in the previous year. As a result, distributable profit after regulatory adjustments stood at a loss of Rs. 11.42 crore.
The capital adequacy ratio decreased to 8.73% from 9.38%, while the cost of funds improved significantly, dropping by 26.33% to 4.03%. Earnings per share (EPS) stood at Rs. 13.83, down from Rs. 17.32, and net worth per share decreased to Rs. 154.61. The bank’s shares were priced at Rs. 209.40 at the end of the quarter, with a price-to-earnings (P/E) ratio of 15.14 times.
Major Financial Highlights:
* Figures are of the Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Machhapuchchhre Bank | ||
|---|---|---|---|
| Q1 2082/83 | Q1 2081/82 | Difference | |
| Paid Up Capital | 12,086,211.56 | 11,621,357.27* | 4.00% |
| Share Premium | 30,881.77 | 30,881.77* | 0.00% |
| Retained Earnings | -114,282.44 | 936,365.85* | - |
| Reserves | 6,683,809.28 | 6,318,762.34* | 5.78% |
| Deposits | 193,541,014.05 | 184,176,049.90* | 5.08% |
| Loans & Advances | 148,652,798.38 | 141,436,048.91* | 5.10% |
| Net Interest Income | 1,458,948.27 | 1,482,694.31 | -1.60% |
| Personnel Expenses | 703,115.00 | 681,302.79 | 3.20% |
| Impairment Charges | 460,874.02 | -43,416.38 | - |
| Operating Profit | 598,431.04 | 999,885.79 | -40.15% |
| Net Profit | 417,956.34 | 503,263.30 | -16.95% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -114,282.44 | 1,065,681.70 | - |
| Capital Adequacy (%) | 8.73 | 9.38 | -6.93% |
| Cost of Fund (%) | 4.03 | 5.47 | -26.33% |
| EPS (In Rs.) | 13.83 | 17.32 | -20.14% |
| Net Worth per Share (In Rs.) | 154.61 | 162.70 | -4.97% |
| Qtr end PE Ratio (times) | 15.14 | ||
| Qtr End Market Price | 209.4 | - | - |
