Rise in core business, write back loans drive up NIC Asia’s profit by 27%

ShareSansar, August 12

NIC Asia Bank Ltd has posted a profit growth of 27 percent in the fourth quarter of the last fiscal year 2070/71 due to the increase in its core business and heavy amount of write back of the amount provisioned earlier.

 According to unaudited financial statement of the bank published today, its net profit rose to Rs 81.47 crore in the quarter end, up by Rs 17.26 crore as compared to the corresponding quarter of the previous year 2069/70.

The bank’s profit rise is also mainly due to the huge amount of write back of provision for possible loss. It has been able to write back Rs 13.49 crore from the amount that it had earlier provisioned for possible loss.

The quarterly report stated that its net interest income rose to Rs 17.98 core, up from Rs 12.43 crore in the previous year.

The bank has also set aside Rs 32.28 crore as the provision for possible loss.
 
Non-performing loan (NPL) of the bank also slightly came down to 2.25 percent past year from 2.32 percent in the previous year. The bank’s total deposit grew by 12.7 percent in the quarter end to reach at Rs Rs 44.98 arba while the loan surged 15 percent to stand at Rs 36.31 arba as compared to the previous year.

The increase in the loan extension despite the sluggish credit demand against liquidity surplus in the banking system shows that the NIC Asia’s core business has increased in the last fiscal year.

Net interest spread of the bank has also remained under the 5 percent rate as enforced by the central bank. The interest spread of the bank stood at 4.06 percent in the last year.

Its EPS is at Rs 35.24, P/E ratio 28 and net worth per share is Rs 225.08.