Nepal SBI Bank shares Annual Progress for FY 2075/76; improvement in key efficiency parameters highlighted

Fri, Dec 6, 2019 1:03 PM on Financial Analysis, Latest,
Nepal SBI...

Nepal SBI Bank Limited (SBI) organized a press meet on 5th December, 2019 and shared its Annual Progress for FY 2075/76. The bank highlighted improvements in the bank’s key efficiency parameters including other major achievements made during the year.

  • Net Interest Income grew from Rs.414.50 Crore to Rs.470.51 Crore, growth of 13.51%.
  • Operating Profits grew by 13.12% to Rs.312.39 Crore.
  • Net Profit of Rs.229.25 Crore was posted, growing by 13.29%.
  • Cost of Fund contained at 6.51% (Previous Year 5.45%).
  • Cost to Income Ratio (excluding staff bonus and impairment provision as per NFRS) retained at 40.19% (PY 37.56%).
  • Non-Interest Income grew to Rs.151.53 Crore, increasing by 23.39%.
  • Return on Asset decreased to 1.94% from 1.97%.
  • CCD Ratio (as per NRB directives) stood at 74.38%.
  • Capital Adequacy Ratio (CAR) reached 14.12% against regulatory stipulation of 11%.
  • Improvement in the quality of assets, achieved net NPA ratio of 0.20%.
  • 76,568 new savings accounts opened during the year.
  • Total number of deposit accounts reached 9.21 Lakhs growing by 10.69%.
  • Number of E-Banking users reached 77,334 growing by 11.99%.
  • Issuance of cards over 7.99 Lakhs with penetration of over 89.68% at the end of FY 2075/76.
  • Extended advances of Rs.161.62 Crore under SME Business portfolio.
  • Mobilized total deposits of Rs.9792.44 Crore and extended loans and advances of Rs.8864.47 Crore.

The bank has attained the present position in banking gradually but steadily in the past 26 years. The bank will leverage its position to expand the customer base by exploring new market segments and expanding delivery channels for its products, while at the same time, providing customer service of high standard by enabling its employees through adopting digitized and modern technology based banking services and innovative tools. Bank’s large network of branches and ATMs will help serve people residing in all areas of Nepal. This wide range of presence helps the bank build up larger customer base with low cost deposit.

It was further informed that the Board of the bank has already decided for distribution of dividend @ 16.84% (bonus shares @ 6% and cash dividend @ 10.84%, including tax) out of the net profit earned last year and the profit earned during the previous years, subject to approval of the upcoming 26th AGM.

The bank’s statement of financial position for the FY 2075/76 (2018/19) are being moved to the AGM of the shareholders slated to be held on 15th December, 2019 (Mangsir 29, 2076), Sunday at Tribhuvan Army Officer’s Club, Bhadrakali, Kathmandu.