Malika Vikas posted Rs 10.50 crore profit last FY; likely to increase its paid up capital to Rs 50 crore

ShareSansar, July 22:

Dhangadhi based Malika Vikas Bank Limited (MDBL) has earned an operating profit of Rs 10.50 crore in the fiscal year 2071/72. The CEO of the bank, Mr. Dhurba Raj Tiwari said, “The net profit of the bank for the last fiscal year will be around Rs 5.5 crores.”

As per the press release, the Bank has collected deposits of Rs 3.17 arba and extended a loan of Rs 2.50 arba and its non-performing loan has decline to 1.17 percent in the fiscal year 2071/72 from 4 percent in the corresponding quarter of 70/71 FY. Presently, the bank has been providing services from 18 branches to their customers.

Mr. Dhurba Raj Tiwari further added, “The bank is likely to give 18-20% stock dividend to its shareholders from the profit earned in the FY 2071/72. However, the decision will have to get approval from the Central bank”.

Malika Vikas has a paid up capital of Rs 24.25 crore at present and after providing 18-20 % bonus share, the paid up capital shall reach to approx. Rs 29 crore.

The BoD of the bank has already approved 50 percent right shares which later the bank may increase to 70 percent and get it endorsed by its upcoming FY 71/72 AGM, said Mr. Tiwari.  After the adjustment of right shares the paid up capital of the bank shall reach to Rs 50 crore in the current fiscal year 2072/73.

It is only after advancing its paid up capital the bank will go for merger to be upgraded as a National level development bank, added Mr. Tiwari.

MDBL last closing price stands at Rs 286 per unit in the NEPSE, as on July 22, 2015.