Merged entity Kamana & Sewa Bikas Bank earns Rs 17.65 crore & 17.28 crore profit respectively in Q4; Kankai Bikas Bank EPS stand at Rs 25.82

Pokhara based Kamana Bikas Bank Limited (KMBL) and Butwal based Sewa Bikas Bank Limited (SEWA) have undergone merger process since Mangsir, 12, 2073. The joint transaction of the both companies had started on Shrawan 22 in the name of Kamana Sewa Bikas Bank Limited and trading will resume soon. Both the development banks have published their unaudited financial report for the fourth quarter of last fiscal year of 2073/74. KMBL and SEWA have uplifted their net profit with growth by 3.16 percent and 60.56 percent respectively in the fourth quarter of the fiscal year 2073/74. KMBL’s net profit has surged from Rs 17.11 crore in the corresponding quarter to Rs17.65 crore in Q4 while SEWA’s net profit increased to Rs 17.28 crore from Rs 10.76 crore. Kamana and Sewa Bikas Bank have paid up capital of Rs 80.43 crore and Rs 1.01 arba in Q4. After their merger, the merged entity will have a paid up capital of Rs 2.06 arba. Kamana Bikas Bank had issued 30% right shares to its shareholders. As per NRB’s directive for all national level development banks to increase their paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74, the merged bank will need to issue a further capital hike of around Rs 44 crore (around 21.50%). Both the banks have managed increase its reserve and surplus, KMBL‘s reserve grew to Rs 31.78 crore from Rs 29.18 crore while SEWA’s reserve is at Rs 29.57 crore from Rs 22.22 crore. The Earning per share (EPS) of KMBL is at Rs 21.96 (KMBL) whereas SEWA EPS at Rs 17. Likewise, net worth per share of both development banks is at Rs 139.51 (KMBL) and Rs 129.08 (SEWA). Meanwhile, Jhapa based Kankai Bikas Bank Limited (KNBL) posted a net profit growth of 16.33 percent in fourth quarter of the fiscal year 203/74. According to the published unaudited report today, the net profit has gone up fromRs3.32 crore to Rs3.87 crore. The development bank has paid up capital of Rs15 crore.The development bank has significantly increased its reserve with a growth of 159.23 percent to Rs 6.16 crore in Q4 of FY2073/74. The earning per share (EPS) of the development bank is Rs25.82 while its net worth per share is Rs140.50. Its P/E ratio is at 9.06 times.