Nepal Bank Limited has released its financial report for the first quarter of the current fiscal year 2082/83. The report shows the bank’s net profit fell by 2.31 percent, settling at Rs 58.82 crore. In the same period last year, the bank had earned Rs 60.21 crore.
Even though the profit slipped, Nepal Bank’s overall income saw a rise. Net interest income increased by 16.38 percent to Rs 2.56 billion, while total operating income grew by 12.75 percent, reaching Rs 2.98 billion. Operating profit also went up by a strong 32.81 percent, touching Rs 91.71 crore.
The bank’s paid-up capital stands at Rs 14.69 billion, with Rs 23.55 billion kept in reserve funds. During this review period, Nepal Bank collected deposits worth Rs 340 billion and distributed loans totaling Rs 223 billion.
One of the major worries for the bank is the rise in bad loans. The non-performing loan (NPL) ratio increased by 1.54 percentage points, reaching 5.49 percent showing growing pressure on loan recovery.
The bank’s distributable profit has gone negative at Rs 57.01 crore, compared to a positive Rs 1 billion in the same quarter last year. This drop also led to a negative annual dividend capacity of 15.52 percent. Nepal Bank’s earnings per share (EPS) decreased by 38 paisa to Rs 16.01. The net worth per share stands at Rs 260.32, and the price-to-earnings ratio (P/E) is recorded at 15.05 times.
