Nepal Bangladesh Bank posts a massive profit rise of 167.80 % in first quarter of 72/73 FY; NPL declines to 1.26%

In the first quarter of the Fiscal Year 2072/73, Nepal Bangladesh Bank Limited (NBB) has posted a net profit of Rs 12.48 crore. The bank posted a massive profit rise of 167.80 percent in the first quarter of the fiscal year 2072/73 as compared to the first quarter of the last fiscal year. It has mobilized Rs 34.66 arab in deposits and extended Rs 26.97 arab in loans and advances in the first quarter this year, compared to the mobilization of Rs 26.96 arba on deposit and Rs 21.06 arba on loans in the first quarter of the last fiscal year. Bank’s net interest income stands at Rs 19.64 crore whereas in the corresponding quarter of the last fiscal year it was Rs 15.69 crore. The bank has an operating profit of Rs 14.83 crore in the first quarter of ongoing fiscal year. The bank has also provisioned Rs 4.14 crore in the first quarter of the fiscal year 2072/73 for the possible loss. Such provisioning amount in the corresponding quarter of the last fiscal year was Rs 7.39 crore. The bank has also been able to write back 3.21 crore in the first quarter of the ongoing fiscal year, slightly up from Rs 2.26 crore in the first quarter of last fiscal year. Non-performing loan (NPL) slightly decreased to 1.26 percent in the first quarter of fiscal year 2072/73 from 1.94 percent in the corresponding quarter of fiscal year 2071/72. The net interest spread (difference in borrowing and lending rate) of the bank was 3.63 percent.The bank’s cost of fund is at 4.68 percent and Base rate at 7.68 percent, CD ratio stands at 70.68 percent. Its EPS (annualized) now stands at Rs 16, P/E ratio at 36times and net worth per share stands at Rs 165. Capital adequacy ratio is at 10.84%. The Bank has a paid up capital of Rs 3.03 arba and a Reserve of Rs 1.97 arba. IFIC Bank Limited of Bangladesh is the major promoter holding 42% stake in the bank. Promoter public share structure stands at 51: 49 ratio of the bank.