Outstanding rise in net interest income leads to 58.36% growth in net profit of Prabhu Bank; capacity to distribute 17% dividend from FY 2075/76 earnings

Prabhu Bank Limited (PRVU) has published its third quarter report for the FY 2075/76 with an outstanding 58.36% growth in net profit.

The bank’s net profit has increased from Rs 97.70 crore in the third quarter of the fiscal year 2074/75 to Rs 1.45 arba in the third quarter of the fiscal year 2075/76.

The bank’s paid up capital stands at Rs 8.23 arba with Rs 5.77 arba as its reserve and surplus. The paid up capital will rises to Rs 8.88 arba once already approved 8% bonus share for FY 2074/75 is adjusted.

In the same quarter, the bank has Rs 1.14 arba 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 1.52 arba (approx.) as distributable profit. This means Prabhu Bank can distribute around 17% (approx.) dividend from the earnings of FY 2075/76 next year if other regulatory reserve requirements are not required.

The bank’s deposit rises by 10.48% to Rs 1.07 kharba whereas loans and advances have also increased by 18.06% to Rs 86.16 arba till the third quarter. The net interest income (core business income) of the bank has also increased by an outstanding 73.31% to Rs 3.37 arba from Rs 1.94 arba of the corresponding quarter.

 The Non-Performing Loan (NPL) has decline to 2.42%.

In the third quarter, the annualized EPS of the bank stands at Rs 23.52. The net worth per share stands at Rs 170.15 and PE ratio stands at 10.58 times.

(Note: The 8% bonus share of Prabhu Bank for FY 2074/75 is not adjusted on Paid up Capital. After bonus adjustment new capital will be Rs 8.88 arba and EPS after bonus adjustment will be Rs 21.77)

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 we have taken number of shares as per Q3 end paid up capital.