Sindhu Bikas Bank Reports Nearly 288% Surge in Net Profit in Q4 FY 2081/82 Despite Drop in Core Banking Income
Tue, Jul 22, 2025 9:33 AM on Financial Analysis, Company Analysis, Latest,
Sindhu Bikas Bank (SINDU) has reported a net profit of Rs. 11.78 crores in the fourth quarter of Fiscal Year 2081/82, marking a significant 287.60% growth compared to Rs. 3.04 crores earned in the same quarter of the previous fiscal year.
Despite this remarkable profit rise, the bank experienced a decline in core banking income. Net interest income fell by 30.14% to Rs. 13.37 crores from Rs. 19.14 crores a year earlier. Deposits also declined by 3.58% to Rs. 5.68 arba, while loans and advances decreased by 9.34% to Rs. 3.25 arba.
The profit surge is primarily attributed to a significant reversal of impairment charges for loans and advances, which stood at a positive Rs. 17.90 crores in Q4 2081/82, compared to a charge of Rs. 1.08 crores in the previous year. This led to an operating profit of Rs. 15.35 crores—an increase of over 417% from Rs. 2.96 crores.
Personnel expenses slightly declined by 2.81% to Rs. 9.88 crores, contributing to cost control. Annualized earnings per share (EPS) also jumped to Rs. 21.15 from Rs. 5.46, while net worth per share rose by 36.54% to Rs. 86.70.
The bank’s capital adequacy ratio improved substantially to 12.80%, up from 6.73%. Likewise, asset quality strengthened with the Non-Performing Loan (NPL) ratio decreasing sharply to 1.09% from 2.76%. The cost of fund declined to 5.41% from 6.52%.
The bank’s Q4-end price-to-earnings (PE) ratio stood at 40.99 times, with a closing market price of Rs. 866.70.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Sindhu Bikas Bank | ||
|---|---|---|---|
| Q4 2081/82 | Q4 2080/81 | Difference | |
| Paid Up Capital | 557,456.07 | 557,456.07* | 0.00% |
| Share Premium | - | - | - |
| Retained Earnings | -207,594.62 | -371,784.19* | - |
| Reserves | 133,440.49 | 168,290.95* | -20.71% |
| Deposits | 5,680,896.18 | 5,892,048.22* | -3.58% |
| Loans & Advances | 3,252,299.01 | 3,587,469.31* | -9.34% |
| Net Interest Income | 133,752.99 | 191,452.97 | -30.14% |
| Personnel Expenses | 98,819.59 | 101,677.12 | -2.81% |
| Impairment Charges/(Reversal) for loans and advances | -179,053.82 | 10,859.11 | - |
| Operating Profit | 153,561.44 | 29,680.55 | 417.38% |
| Net Profit | 117,878.75 | 30,412.86 | 287.60% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -207,594.62 | (371,784.19) | -44.16% |
| Capital Adequacy (%) | 12.80 | 6.73 | 90.19% |
| Non- Performing Loan (NPL)(%) | 1.09 | 2.76 | -60.51% |
| Cost of Fund (%) | 5.41 | 6.52 | -17.02% |
| Annualized EPS (In Rs.) | 21.15 | 5.46 | 287.60% |
| Net Worth per Share (In Rs.) | 86.70 | 63.50 | 36.54% |
| Qtr end PE Ratio (times) | 40.99 | ||
| Qtr End Market Price | 866.7 | - | - |
