Nepal Investment Bank reports modest profit growth of 13.04% in Q2; Operational profit Rs 1.45 arba; FPO at Rs 601/unit in pipeline

Nepal Investment Bank Limited (NIB) has reported modest profit rise of 13.04 percent in net profit in the second quarter of the current fiscal year 2072/73.

Publishing the unaudited financial report for the second quarter today, the commercial banks has stated that the bank’s net profit rose to Rs 1.09 arba in Q2, up from Rs 96.54 crore in the corresponding quarter of the previous fiscal year 2071/72.

The bank has collected deposits of Rs 98.06 arba in Q2 of FY 2072/73 compared to Rs 79.92 arba in the corresponding quarter of the previous fiscal year 2071/72. Likewise, it has extended loans of Rs 77.48 arba up from Rs 63.74 arba.

NIBL’s net interest income has risen from Rs 1.44 arba in the corresponding quarter of the previous fiscal year to Rs 1.67 arba in the second quarter. It’s paid up capital remains at Rs 6.34 arba.

The bank has posted an operating profit of Rs 1.45 arba in the Q2 up from Rs 1.15 arba in the corresponding period of the previous fiscal year.

NIBL’s non-performing loan has slightly gone down from 1.13 percent in the corresponding period of the previous fiscal year to 1.10 percent in Q2. The bank has managed to write back Rs 24.40 crore in Q2 whereas, the provision for possible losses figure stands Rs 31.85 crore during Q2 of 72/73 FY.

Its EPS (annualized) now stands at Rs 34.40, net worth per share at Rs 172.01, PE ratio at 22.59 times and CD ratio at 76.67 percent.

The bank is also planning for FPO of 9,069,388 numbers of equity shares of face value NPR 100/-each to be issued to the general public (8,615,919 shares) at a premium of NPR 501 per share (issue price for public NPR 601 per share) and staff (453,469 shares). This issue is at SEBON for approval. The bank aims to float these shares by the first week of Fagun 2072.