Write back of hefty amounts drives up Lumbini Bank’s profit, Rs 16.17 crore for provisioning

ShareSansar, August 14:

Lumbini Bank Ltd has posted a massive profit growth of 63 percent in the last fiscal year 2070/71 thanks to the heavy amount that it managed to write back by the fiscal year end.

According to the fourth quarterly report of the bank published today, the net profit of the bank soared to Rs 24.33 crore, up from Rs 14.96 crore in the corresponding period of the previous fiscal year 2069/70.

The bank wrote back Rs 15.03 crore from the amount that it had set aside earlier for the possible loss.

Net interest income of the bank reached Rs 53.21 crore, an increment of Rs 3.6 crore from the income of corresponding previous year quarter ending.

The bank mobilized Rs 17.25 arba on deposit and Rs 14.25 arba on loan compared to Rs 10.82 arba of deposit and Rs 9.17 arba of loan that it had mobilized in the previous year.

Non-performing loan (NPL) of the bank stood at 0.88 percent in the quarter ending. The bank provisioned Rs 16.17 crore for the possible loss.

The bank’s paid-up capital is still below central regulatory bank’s requirement.

While Nepal Rastra Bank had directed the commercial banks to maintain Rs 2 billion paid-up capital by the last fiscal year end, Lumbini’s paid-up capital is at around Rs 1.89.  

Its annualized EPS is Rs 17.18, P/E ratio 20.25 times and net worth per share Rs 140.14.