NRB gives final nod; Lumbini Bank's integrated business from Sunday

ShareSansar, June 26:

Here’s another good news for the shareholders of Lumbini Bank Limited and Navadurga Finance Limited.  Nepal Rastra Bank has given the final approval for the merger of these BFIs.

Not only that the merged entity, which has retained the name of the commercial bank, will starts its integrated business as early as July 29, i.e. Sunday.

Both the BFIs had applied for the final approval of the central bank immediately after holding their special general meeting on May 23.

The merger will not only increase the number of branches and outreach of Lumbini, but also shore up its capital base.

Even before the merger, Lumbini Bank had reported 24.48 percent in its net profit in the third quarter of the current fiscal year 2070/71, owing to sound core business besides a huge write back amount.

Its net profit rose to Rs 14.54 crore by the end of third quarter, up from Rs 11.68 crore it posted in the corresponding quarter of the last fiscal year 2069/70.

The profit was largely fuelled by a massive write back of Rs 12.32 crore by the end of the third quarter though its net interest income increased almost marginally to Rs 36.17 crore as compared to Rs 35.04 crore at the end of the corresponding quarter end.

At the same time, Lumbini Bank has also provisioned Rs 16.75 crore for the possible losses in the quarter.

It mobilized Rs 13.40 arba in deposit and Rs 12 arba in loan as compared to Rs 9.66 arba in deposit and Rs 8.98 arba in loan in the corresponding quarter of the last fiscal.

Its EPS has now risen to Rs 11.21, net worth per share stands at Rs 134.22 and the P/E ratio is 24.98.
The bank had reported a slight rise of 9 percent in its net profit in the second quarter.