Nepal Investment net profit slides by 12% in Q1 due to decrease in write back of provision

Nepal Investment Bank Limited (NIB) has earned a net profit of Rs 42.97 crore for the first quarter of the current fiscal year 2072/73. The net profit has dropped by 12% as compared to the corresponding quarter of the previous fiscal year. The decrease in Net profit is due to decrease in write back of provision. Write back this quarter stands at Rs.8.46 crores while it was 23.58 crores during the same period last year. According to the unaudited financial report for the first quarter today, the commercial bank has an operating profit of Rs 58.60 crore in Q1 up from 53.58 crore in the corresponding quarter of the previous fiscal year. The commercial bank has mobilized deposits of Rs 95.89 arba in the 1st quarter compared to Rs74.93 arba in the corresponding quarter last year. It extended loans of Rs 74.11 arba , rising from Rs 59.81 crore.  It has borrowings of Rs 27.45 crore. Deposit collection grew by 27.96% and loans and advances grew by 23.89%. Margin type loans increased 7 times (704%) and term loans 67.21% compare to same period last year. Foreign exchange income up 33.07%. Nepal Investment Bank’s net interest income decreased to Rs 65.50 crore from 70.55 crore in the first quarter of 2072/73. It’s paid up capital remains at Rs 6.34 arba with reserve of Rs 3.90 arba in Q1 The commercial bank’s NPL dropped to 1.07 % from 1.55 % in Q1. NIB’s annualized EPS now stands at Rs 27.09 , net worth per share at Rs 161.58, and P/E ratio at 38.13 times.