Prabhu Bank Records Tenfold Profit Growth in Q4, Boosted by Reversal in Impairment Charges; Distributable Profit Reached to Rs. 1.05 Arba
Wed, Aug 13, 2025 7:40 AM on Financial Analysis, Company Analysis, Latest,
Prabhu Bank Limited (PRVU) has reported a remarkable surge in profitability for the fourth quarter of FY 2081/82, with net profit soaring to Rs. 5.44 Arba from just Rs. 51.08 Crore in the corresponding period last year. The 965.41% year-on-year growth was primarily driven by a significant reversal in impairment charges amounting to Rs. 2.51 Arba, compared to a provisioning expense of Rs. 4.72 Arba in the previous fiscal year.
Paid-up capital remained steady at Rs. 23.54 Arba, while reserves rose by 11.78% to Rs. 13.55 Arba. Retained earnings turned positive, reaching Rs. 1.05 Arba after posting a loss of Rs. 3.03 Arba last year. The bank’s distributable profit, after profit and loss appropriation and regulatory adjustments, also stood at Rs. 1.05 Arba.
Customer deposits increased by 12.19% to Rs. 3.42 Kharba, while loans and advances to customers grew by 4.22% to Rs. 2.30 Kharba. Borrowings were recorded at Rs. 68.77 crores. The cost of funds improved notably to 4.36% from 5.77% a year earlier, reflecting more efficient fund management.
On the income side, net interest income dropped sharply by 39.47% to Rs. 7.20 Arba from Rs. 11.89 Arba. Personnel expenses rose moderately by 4.19% to Rs. 4.62 Arba. Operating profit almost doubled, reaching Rs. 6.28 Arba from Rs. 3.15 Arba in the previous year.
Key financial ratios showed improvement, with the capital adequacy ratio climbing to 13.90% from 12.37%. The non-performing loan ratio remained largely stable at 4.96%. Annualized earnings per share jumped to Rs. 23.12 from Rs. 2.17, while net worth per share advanced to Rs. 162.00 from Rs. 138.64. At the end of the quarter, the bank’s shares were priced at Rs. 221.89, reflecting a price-to-earnings ratio of 9.60 times.
Major Financial Highlights:
* Figures are of the Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Prabhu Bank | ||
|---|---|---|---|
| Q4 2081/82 | Q4 2080/81 | Difference | |
| Paid Up Capital | 23,542,490.00 | 23,542,490.00* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | 1,045,108.00 | -3,025,526.00* | - |
| Reserves | 13,551,236.00 | 12,122,749.00* | 11.78% |
| Deposits | 342,188,540.00 | 305,012,852.00* | 12.19% |
| Borrowings | 687,750.00 | 668,250.00* | 2.92% |
| Loan and advances to Customers | 230,370,295.00 | 221,045,599.00* | 4.22% |
| Net Interest Income | 7,197,864.00 | 11,890,894.00 | -39.47% |
| Personnel Expenses | 4,621,357.00 | 4,435,455.00 | 4.19% |
| Impairment Charges | -2,511,505.00 | 4,719,871.00 | - |
| Operating Profit | 6,282,761.00 | 3,150,060.00 | 99.45% |
| Net Profit | 5,442,693.00 | 510,856.00 | 965.41% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 1,045,108.00 | -3,025,526.00 | - |
| Capital Adequacy (%) | 13.90 | 12.37 | 12.37% |
| NPL% | 4.96 | 4.94 | 0.40% |
| Cost of Fund (%) | 4.36 | 5.77 | -24.44% |
| Annualized EPS (In Rs.) | 23.12 | 2.17 | 965.41% |
| Net Worth per Share (In Rs.) | 162.00 | 138.64 | 16.85% |
| Qtr end PE Ratio (times) | 9.60 | ||
| Qtr End Market Price | 221.89 | - | - |
