NCC Bank makes modest profit growth of 3%, NPL slightly down

ShareSansar, August 13:

Nepal Credit and Commerce (NCC) Bank has posted a modest profit growth in the fourth quarter of last fiscal year 2070/71. The marginal level of profit is also due to the heavy amount of write back from the provision of possible loss set aside earlier.

Publishing the unaudited financial report today, the bank stated that its net profit inched up to Rs 36.58 crore in the last fiscal year, slight up from Rs 35.48 crore in the corresponding period of the previous fiscal year 2069/70.

The net interest income of the bank also dropped to Rs 78.35 crore last year from Rs 81.29 crore in the previous year.
The crisis ridden bank is currently under the control of the Nepal Rastra Bank (NRB) deputed team. It was taken over by the central regulator on February due to the internal feuds among two factions of the bank which had seriously hindered the daily operation of the bank.

Though the net interest income tumbled, the bank has been able to write back a heavy amount of provision for possible loss. According to the statement, it has written back Rs 18.66 crore from the amounts it has provisioned earlier for possible loss.
 
The bank mobilized Rs 22.26 arba on deposit and Rs 17.87 on loans on the last year, up from the mobilization of Rs 21.65 arba deposit and Rs 14.07 arba on loan in the previous year.

Non-performing loan (NPL) of the bank also went down to 2.7 percent from 2.8 percent in the previous year. However, the bank’s total paid-up capital is not up to the mark.

The paid-up capital of the bank stands at Rs 1.47 arba while the NRB has made it mandatory for the commercial banks to maintain the capital of Rs 2 arba by the end of last fiscal year 2070/71.

The bank’s average interest spread stands at 3.42 percent.
Its EPS is at Rs 25.07, P/E ratio 25.61 times and net worth per share is Rs 278.95.