Write back loan propels Siddhartha Bank’s profit by 64pc, NPL becomes half

ShareSansar, August 6:

Siddhartha Bank Ltd (SBL) has posted a profit rise of 64 percent in the last fiscal year 2070/70 thanks to the massive write back of the loan provisioned earlier.

According to the unaudited financial result of the bank published today, its net profit has jumped to Rs 79.15 crore, up from Rs 48.26 crore at the end of the previous fiscal year 2069/70.

The written back from the earlier provision set aside for loan and advance has left the positive impact on the profitability of the bank.

The bank has written back the provision for possible loans worth Rs 26.64 crore in the fourth quarter period.

The net interest of the bank, however, tumbled to Rs 1.3 arba in this fourth quarter from Rs 1.2 arba in the corresponding period of the previous fiscal year 2069/70.   

The bank mobilized Rs 35.41 arba in deposit and Rs 27.33 arba in loan as compared to Rs 28.39 arba in deposit and Rs 23.09 arba in loan it had mobilized in the same period of previous fiscal year.

Similarly, the bank also decreased its non performing loan (NPL) to 1.69 percent from 2.39 percent in the previous fiscal year.

Following the Nepal Rastra Bank’s directive to cap the interest spread rate below 5 percent from the beginning of this fiscal year, the SBL has been able to contain its net interest spread to 4.94 percent in the last fiscal year.  

Its EPS (annualized) now stands at Rs 43.64, P/E ratio at 18.56 and net worth per share stands at Rs 181.62.