Prabhu Bank reports an outstanding performance in Q4 with 112% growth in net profit; expected dividend capacity is 19%

Prabhu Bank Limited (PRVU) has published an outstanding fourth quarter report for FY 2075/76 with 112.05% growth in net profit.

The bank’s profit has increased from Rs 0.96 arba in the fourth quarter of the fiscal year 2074/75 to Rs 2.05 arba in the fourth quarter of the fiscal year 2075/76.

In the same quarter, the bank has Rs 1.73 arba as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. This means Prabhu Bank can distribute maximum 19% (approx.) dividend next year if other regulatory reserve requirements are not required. 

The existing capital adequacy of PRVU is 11.58% at the end of Q4 which is near to NRB requirements of 11% minimum. This suggests that this year expected dividend priority of PRVU will be on bonus shares and very less on cash dividend. 

The bank’s has deposit from customers of Rs 1.12 kharba and loans and advances to customers stands at Rs 86.41 arba in till the fourth quarter. The net interest income of the bank has increased by whopping 62.15% to Rs 4.56 arba from Rs 2.81 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 8.89 arba with Rs 5.67 arba as its reserve and surplus.

The Non-Performing Loan (NPL) has decreased to 2.31% from 3.98%.

In the fourth quarter, the EPS of the bank stands at Rs 23.06. The net worth per share stands at Rs 163.80 and PE ratio stands at 11.53 times.

The earning yields of the company is 8.66% (risky return) which is still below risk free return (if we considered ongoing debenture return of 10.25%).

Click here for Q4 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 Q4 end paid up capital.