Sahayogi Vikas bank profit mounts by 93.09 %; NPL slides to 0.08 %

Janakpur based Sahayogi Vikas Bank Limited (SHBL) has posted a net profit of Rs 65.17 lakh in the first quarter of the fiscal year 2072/73.The profit soared by 93.09 % in Q1. The Vikas Bank has not provisioned any amount for loan loss so the profit appears to be massive. Recently, the Nepal Rastra Bank (NRB) has relaxed policy regarding loan loss provision which gave banks flexibility to classify some loans as good loans. According to the unaudited financial report published today, the development bank has reported an operating profit of Rs 1.02 crore in Q1 almost double the operating profit as compared to the corresponding quarter of the previous fiscal year. The development bank’s net interest income diminished to Rs 1.89 crore from 2.38 crore as compared to the corresponding quarter of the previous fiscal year. Sahayog iVikas Bank has a paid up capital of Rs 20.14 crore in Q1 with the reserve of Rs 16.48 crore in Q1. Its NPL and CD ratio dropped to 0.08% from 4.27 % and 67.35 % from 70.10 % respectively as compared to the corresponding quarter of the previous fiscal year. SHBL’s Earning Per Share (annualized) and Net Worth per Share is Rs 12.94 and Rs 131.51 respectively. Relaxation of Credit Regulation and CRR