Outstanding growth in net interest income helps Kumari Bank to earn Rs 1 arba in Q3; can give 9% dividend from FY 2075/76 earnings

Kumari Bank Limited (KBL) has published an outstanding third quarter report of FY 2075/76 with 36.26% growth in net profit.

The bank’s deposit rises by 15.95% to Rs 69.04 arba whereas loans and advances have also increased by 14.86% to Rs 69.59 arba in the third quarter. The net interest income of the bank has also increased by an outstanding 60.67% to Rs 2.23 arba from Rs 1.38 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 7.16 arba with Rs 4.35 arba as its reserve. The Non-Performing Loan (NPL) has remains at 1.41%. The bank has already announced 21.25% bonus for FY 2074/75 and yet the bonus amount i.e. Rs 1.52 arba left to be adjusted in paid up capital in the published quarterly result.

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The KUmari Bank’s profit has increased to Rs 1 arba from Rs 73.63 crore in the corresponding quarter. In the same quarter, the bank has Rs 61.60 crore as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. If the profit growth of this quarter continues in fourth quarter then the company will have Rs 82.13 crore (approx.) as distributable profit. This means Kumari Bank can distribute around 9% (approx.) dividend (adjusted capital) from the earnings of FY 2075/76 next year if other regulatory requirements are not required.

In the third quarter, the annualized EPS of the bank stands at Rs 18.67. The net worth per share stands at Rs 160.77 and PE ratio stands at 13.87 times.

(Note: The adjusted EPS after bonus will be Rs 15.36 and PE remains same at 13.87 times)

Click Here for Q3 report:

Major Highlights:

* Figure are of Immediate Previous Year Ending (Audited)

* Published EPS, Networth and PE may differ. As per NFRS standard, Weighted average number of shares is taken while calculating EPS, Networth and PE but here we have taken number of shares as per Q3 end paid up capital.