Machhapuchhre Bank Reports 12.24% Rise in Net Profit to Rs. 2.11 Arba in Q4 FY 2082/83; Deposits Grow 19.72%

Machhapuchhre Bank Limited (MBL) has reported a 12.24% increase in net profit in the fourth quarter of fiscal year 2082/83, earning Rs. 2.11 Arba compared to Rs. 1.88 Arba in the corresponding quarter of the previous fiscal year.

The bank’s paid-up capital increased significantly by 29.81% to Rs. 15.09 Arba (including preference shares) from Rs. 11.62 Arba. The increase includes the issuance of Rs. 3 Arba in irredeemable preference shares. Retained earnings rose 4.87% to Rs. 98.20 Crore, while reserves increased 17.69% to Rs. 7.44 Arba.

Machhapuchhre Bank’s deposits grew 19.72% to Rs. 2.20 Kharba from Rs. 1.84 Kharba a year earlier. Loans and advances also increased 15.95% to Rs. 1.64 Kharba from Rs. 1.41 Kharba.

Net interest income rose 5.53% to Rs. 6.07 Arba from Rs. 5.76 Arba. Personnel expenses increased 10.27% to Rs. 2.72 Arba, while impairment charges surged 94.35% to Rs. 1.08 Arba from Rs. 55.67 Crore.

Despite the sharp increase in impairment charges, the bank’s operating profit edged up 0.54% to Rs. 3.16 Arba from Rs. 3.15 Arba in the previous fiscal year. Distributable profit after profit/loss appropriation and regulatory adjustments increased 4.87% to Rs. 98.19 crores from Rs. 93.64 Crore.

The bank’s capital adequacy ratio improved to 10.04% from 9.27%. Meanwhile, the NPL ratio remained broadly stable at 3.98%, compared to 3.96% in the previous fiscal year.

Machhapuchhre Bank’s cost of funds declined significantly by 22.70% to 3.27% from 4.23%. However, earnings per share (EPS) declined 4.72% to Rs. 15.44 from Rs. 16.21. Net worth per share increased 4.44% to Rs. 169.91 from Rs. 162.70.

At the end of the review quarter, Machhapuchhre Bank’s share price stood at Rs. 248, with its price-to-earnings (P/E) ratio recorded at 16.06 times.

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