NCC Bank profit rises by 55.55%, thanks to write back amount of Rs 8.8 crore

ShareSansar, January 27:

Nepal Credit and Commerce Bank Limited (NCC) have posted a healthy profit growth of 55.55 percent in the second quarter of the current fiscal year 2071/72.

According to an unaudited financial statement published today, the bank disclosed that it achieved a net profit of Rs 24.87 crore in the second quarter of the current fiscal year compared to the net profit of Rs 15.99 crore in the corresponding period of last fiscal year 2071/72.

The bank’s net interest income reached Rs 40.71 crore in the second quarter this year, which is a growth of 16.65 percent compared to the income of the same period last year.

While the bank was required to provision Rs 3.87 crore in the second quarter this year for the possible losses, but it could manage to write back Rs 8.8 crore that it had provisioned in the previous years for possible losses which is the main reason that banks able to increase profit by good margin this quarter.

NCC Bank observed a satisfactory growth in terms of deposit collection and loan supply during the review period. While the bank mobilized Rs 22.38 arba on deposit in the second quarter this year, it extended a total of Rs 19.16 arba on loans.

It had mobilized a total of Rs 22.07 arba on deposit and Rs 17.60 arba on loans in the corresponding period of the last fiscal year 2071/72.

The bank also managed to slash its non performing loan (NPL) to 2.21 percent in the second quarter from 2.46 percent in the corresponding period of last year.

The annualized earning per share (EPS) and the net worth per share of the bank stand at Rs 28.49 and Rs 197.62 respectively. The P/E ratio remained 20.74 times.