Massive provisioning pushes Commerz and Trust profit down by 64.89%

ShareSansar, January 26:

Commerz and Trust Bank Nepal Limited, which is merging with Global IME Bank Limited, has reported a profit loss of  a whopping 64.89 percent owing to massive provisioning of Rs 7.34 crore up from Rs 2.80 in the corresponding quarter last fiscal.

The commercial bank’s net profit has dropped from Rs 4.13 crore to Rs 1.45 crore.

The drastic increment in the provisioning could be related to a high exposure of its loan in the realty sector.

Commerz and Trust had issued personal home loan worth Rs 41.54 crore in the second quarter from just Rs 15.66 crore in the last corresponding quarter.

Likewise, it had issued other real estate loan, including land purchase and plotting, worth Rs 36.82 crore from Rs 18.22 crore in the second quarter of the last fiscal year.

Its non-performing loan has also increased from 0.32 to 2.41.

The bank has, however, mobilized both deposit and loan, impressively.

It mobilized Rs 10.68 arba in deposit and Rs 10.24 arba in loan as compared to Rs 8.39 arba in deposit and Rs 7.86 arba.

Its net interest income has marginally increased from Rs 13.80 crore in the second quarter of the last fiscal to Rs 13.84 crore.

The bank’s EPS stands at Rs 0.73 and net worth per share at Rs 105.47.