Vibor Bikas Bank makes first-time profit in 3 years; NPL goes down significantly

ShareSansar, October 31:

Vibor Bikas Bank Ltd has managed to record profit in the first quarter of the current fiscal year 2071/72.

The development bank which was on net loss on last fiscal year 2070/71 managed to earn Rs 2.54 crore as net profit in the first quarter of the current fiscal year.

Problems related to corporate governance, mainly imprudent real estate investment decisions, had pushed the Vibor Bikas Bank into crisis in 2011. The bank has been posting loss since that period.

The bank had registered a net loss of Rs 13.2 crore as of fourth quarter ending of the last fiscal year 2070/71.

Likewise, it had posted net loss of Rs 2.9 crore in the first quarter of the last fiscal year 2070/71.

The profit of the bank—which was in loss in the previous years—was  possible mainly due to the heavy write back amount that it had provisioned in the earlier years.

The bank wrote back Rs 9.71 crore from the provision for possible losses.

Another good part of the financial statement of the Vibor Bikas Bank is that it has also reduced the non-performing-loan (NPL) significantly in the first quarter.   

 The NPL of the bank came down to 5.65 percent in this first quarter of the current fiscal year from whopping 15.52 percent in the corresponding period of the last fiscal year 2070/71.
The bank, in its statement, also hoped that its NPL will come below 5 percent in the second quarter.

The bank mobilized a total of Rs 3.65 arba in deposit and Rs 2.9 arna in loans in the first quarter of current year, up from Rs 3.9 arba and Rs 1.7 arba in deposit and loans respectively in the corresponding period of the last fiscal year.

The bank's reserve and surplus, however, is still in the negative side. The bank's reserve and surplus stood at Rs 40.05 crore negative in the first quarter in the current fiscal year. Such reserve and surplus was Rs 42.41 crore negative in the fourth quarter ending of the last fiscal year 2070/71.

Annualized earning per share (EPS) and net worth per share remained at Rs 2.77 and Rs 56.33 respectively while price earning ratio stood at 46.61 times.