Sahara Bikas Bank earns Rs 41.44 lakh in Q2; NPL at 5.37%

Sahara Bikas Bank Limited (SHBL) has posted a net profit of Rs 41.44 lakh in the second quarter of the ongoing fiscal year 2073/74. As per the unaudited quarterly financial statement published by the development bank today, it has posted a positive net profit, up from net loss posted last year and in the first quarter this year. Its net interest income has increased a staggering 305% to Rs 1.16 crore. It has mobilized deposits of Rs 49.94 crore and floated loans worth Rs 36.46 crore. Its CD ratio stands at 61.49%. Its non-performing loan has increased to 5.37%. SHBL had issued 18% bonus share and 150% right share for the FY 2072/73. Its paid up capital stands at Rs 6.72 crore after the above issues. It’s 6^th AGM conducted on Poush 29, 2073 had endorsed 250% right shares. After the issuance of 250% right shares, its paid up capital will reach Rs 25.51 crore. As per NRB’s requirement for all 1-3 district level development banks to increase their paid up capital to Rs 50 crore by the end of FY 2073/74, SHBL will have to increase its capital by a further 96%. It had signed a merger agreement with Sahayogi Bikas Bank Limited on May 17, 2016, but the merger process was cancelled on January 11, 2017. Its EPS stands at Rs 6.16, net worth at Rs 152.91 per share, and P/E ratio at 205 times. Trading of SHBL is yet to resume in NEPSE with its price adjusted with 18% bonus and 150% right issue. Its LTP is at Rs 1,279 as of May 17, 2016.