Nabil Bank earns Rs 1.74 arba in Q2; EPS at Rs 56.69

Nabil Bank Limited (NABIL) has posted a 29.35% increase in its net profit in the second quarter of the fiscal year 2073/74. As per the unaudited quarterly statement published by the commercial bank, its net profit has increased to Rs 1.74 arba; up from Rs 1.35 arba posted in the same period last year. It has managed to earn Rs 2.65 arba as its core business income (net interest income) and has been able to reduce its non-performing loan (NPL) to 0.90% from 1.70%. It has a huge deposit base of Rs 1.2 kharba with loans of Rs 90.30 arba. Its paid up capital at the end of Q2 this year now stands at Rs 6.18 arba with a massive reserve of Rs 7.15 arba. It had provided 30% bonus share and 15% cash dividend for the FY 2072/73. Its EPS now stands at Rs 56.69, net worth per share at Rs 215.75 and P/E ratio at 27.42 times. As per NRB’s requirement for all commercial banks to maintain a minimum paid up capital of Rs 8 arba by the end of FY 2073/74. Nabil Bank will need to increase its capital by a further 29.37%. As per NABIL’s own capital plan, it aims to provide at least 30% stock dividend to reach the minimum capital requirement.