Net Profit of Bank of Nepal in FY 2076-077.

Net profit of banks

Let’s discus about the net profit of bank of Nepal in FY 2076-077. A bank is a financial institution that accepts deposits and makes loans and derives a profit from the difference in the interest rates paid and charged and provides other different financial services. It also provides loans to individuals like student, businessman, etc. and to organizations to run business efficiently. The net profit of bank determine how they are providing services to their customers.

Overview

The main objectives of bank are to make money by provide financial aid to customers by charging interest one it. Here we’ll discuss about the net profit of bank of Nepal in previous fiscal year. These are the top commercial banks in Nepal which providing quality services to their customers.

1. NIC Asia Bank

The profit of NIC Asia Bank increased by 3.2%. NIC Asia, which is engaged in aggressive market expansion, has managed to increase its profits even in such a difficult time. The bank has been able to increase its profit by introducing interest-bearing installments by introducing various discount schemes. As of end of Asadh, the bank has only Rs 910 million left to raise interest.

The bank had earned a net profit of Rs 3.23 billion in the previous fiscal year and Rs 3.12 billion in the last fiscal year. The distributable profit of the bank is Rs. 1.44 billion. The bank’s ability to pay dividends from last fiscal year’s profit is 13 percent. The bank has a paid-up capital of Rs 9.71 billion and a reserve fund of Rs 5.82 billion.

The bank has increased its net interest income to Rs 7.60 billion from Rs 6.96 billion in the fourth quarter of the previous fiscal year. The bank’s operating profit has declined slightly. 4.51 billion in the fourth quarter of the previous fiscal year compared to an operating profit of Rs. 4.46 billion in the corresponding period of the previous year.

The bank, which has collected Rs 201 billion in deposits, has invested Rs 160 billion in loans. The bank’s earnings per share is Rs 32.13 and net worth per share is Rs 177.36. The NPL ratio of the bank has increased from 0.46 percent to 0.75 percent. The capital adequacy ratio of the bank is 13.20 percent and the cost of the fund is 5.56 percent. The base rate of the bank is 7.70 percent and the spread rate is 4.39 percent.

2. Nepal Investment Bank

Nepal Investment Bank also published its financial statements for the fourth quarter of the fiscal year 2076-077.  The bank has made public the financial details of most of the indicators including net profit.  The net profit of the bank has declined by 22.64% to Rs 2.57 billion.  The bank had earned a profit of Rs 3.32 billion in the corresponding period of the previous year.

According to the public financial statement the distributable profit of bank also declined by 53.09%.  Distributable profit has been limited to Rs 652.36 million.  The bank’s distributable profit was Rs 1.39 billion in the corresponding period of the previous year.  Similarly, two important indicators of the bank, net interest income and operating profit, have also declined.  Net interest income decreased by 6.69% to Rs 5.76 billion and operating profit decreased by 12.03% to Rs 3.63 billion 61.41 million.  The bank’s earnings per share is Rs 18.07.

3. NMB Bank

NMB Bank has earned a profit of Rs 2.27 billion is fiscal year 2076-077.  This profit was earned by the bank in the fourth quarter of the last fiscal year.  This is 0.59% more than the previous fiscal year.  The bank had earned a profit of Rs 2.25 billion in the corresponding period last year. 

During this period, the bank has expanded its deposit mobilization by 34.49% and credit investment by 30.75%.  Similarly, according to the financial statements made public by the bank, distributable profit has also increased by 11.92%.  The distributable profit of the bank was Rs 1.27 billion in the corresponding period of the previous year.  By the end of the quarter, it had risen to Rs 1.42 billion. 

At present, the paid up capital of the bank is Rs 13.95 billion.  The bank has a reserve fund of Rs 5.83 billion.  Net interest income increased by 30.19% but operating profit decreased by 25.05.  The bank’s earnings per share have shrunk to Rs 16.73 and net worth per share is Rs 149.57.

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4. Mega Bank

Mega Bank Nepal has made public its financial statements for the fourth quarter of the last fiscal year.  Net profit of bank is Rs 1.52 billion during the period.  The bank has the capacity to distribute Rs 1.15 billion dividend to its share capital from the profit.  At present, Anupama Khunjeli is in the leadership role of the bank.  After the merger of Gandaki Development Bank, the paid up capital of the bank has reached 13.13 billion. 

According to the public financial statement, the bank has so far collected Rs 127 billion in deposits and Rs 110 billion in loans.  Similarly, the bank has a reserve of Rs 3.32 billion and a base rate of 8.32 percent.  The bank’s earnings per share is Rs 14.52.  The bank has a net worth of Rs 133.99 per share.

5. Prabhu Bank

Prabhu Bank has made a profit of Rs. 1.8 billion in the last fiscal year 2076/77. The bank, which has a paid-up capital of Rs 10.31 billion, can distribute 10.47 percent dividend to the shareholders only from last year’s profit. The bank has Rs 4.18 billion in reserves. The bank has made a profit of Rs 1.36 billion in fiscal year 2076-77 and it was made a profit of 1.78 billion in previous fiscal year. Prabhu Bank has collected Rs 128 billion in deposits till end of the Asadh.

Similarly, the bank has disbursed loan of Rs. 99.69 billion till end of Asadh. Prabhu Bank’s NPL ratio stood at 2.81 percent with a capital adequacy ratio of 11.59 percent. The NPL was 3.76 percent in the previous year. The loan to deposit ratio of the bank is 66.96 percent. Prabhu Bank has a base rate of 8.32 percent and a spread rate of 3.57 percent. The bank’s EPS is Rs 13.93.

6. Century Bank

Century Bank’s profit also increased by 33.99%. The bank has collected 676.48 million in the fourth at the end of the Asadh. The bank’s distributable profit during the period stood at Rs. 409.2 million. The increase in the bank’s profit has seen an improvement in net interest income and operating profit. The bank earned net interest income of Rs 2.59 billion in the fourth quarter of the fiscal year 2076-077.

Similarly, the operating profit has increased from Rs. 1.25 billion to Rs. 1.22 billion. The bank has a paid-up capital of Rs 8.41 billion and a reserve fund of Rs 1.53 billion. The bank has collected Rs 65.34 billion in deposits and has invested Rs 58.44 billion in loans. The NPL ratio of the bank has increased from 1.40 percent to 2.21 percent. The bank has a net worth of Rs 126.76 per share where earnings per share is Rs 10.77.

7. Lakshmi Bank

Lakshmi Bank has also made public its financial statements for the fourth quarter of the last fiscal year. Net profit of bank is Rs 1.48 billion.  The bank had earned a profit of Rs 1.59 billion in the corresponding period last year.  From the fourth quarter profit, the bank has the capacity to distribute Rs 1.12 billion or 11.41 percent dividend to its shareholders. The bank has increased its deposits by Rs 20 billion so far. 

As of end of Asadh of last year, the bank had collected Rs 80 billion in deposits.  With a paid-up capital of Rs 9.81 billion, the bank’s earnings per share stood at Rs 15.13.  The base rate of the bank is 9.23 percent and the spread rate is 3.94 percent.  According to the financial statement, the bank has also increased its loan investment by Rs 15 billion.  The capital adequacy ratio of the bank is 12.46 percent.

8. Machhapuchhre Bank

Machhapuchhre Bank has published financial details of FY 2076-077.The net profit of bank is Rs 1.25 billion.  This is less than the previous fiscal year?  The bank’s profit for the previous fiscal year, which was slightly lower than last year due to the Corona epidemic, was Rs 1.69 billion.  The bank has disbursed loan of Rs 92.33 billion till mid-July.  It had disbursed Rs 75.09 billion in mid-July last year. 

According to the public unrevised financial statement, the bank has a deposit of Rs 104 billion in end of the Asadh.  The bank’s deposits stood at Rs 87 billion in the corresponding period of the previous fiscal year.  The loan-to-deposit ratio of the bank is 73.81 percent and the base rate is 9.21 percent.  The spread rate is 4.36 percent.  The distributable profit of the bank is Rs 908.2 million.  Bad loans of banks seem to have increased. 

In the corresponding period of the previous fiscal year, the NPL ratio stood at 0.53 percent as against 0.37 percent in the corresponding period of the previous year.  The capital adequacy ratio of the bank is 13 percent.  With a paid-up capital of Rs 8.45 billion, Machhapuchhre has a dividend potential of 10 percent from last year’s profit.  This amount may vary during the audit.

9. Kumari Bank

Kumari Bank also published its financial statements for the fourth quarter of the Fiscal Year 2076-077.  As per the details made public, the bank has earned a net profit of Rs 1.22 billion.  The net profit of bank is Rs 1.23 billion in the corresponding period of the previous fiscal year.  The profit of the bank that can be distribute is Rs 712.88 million. 

Similarly, the bank’s net interest income has increased while operating profit has declined.  According to the revised financial statement which is not revised, the bank’s net interest income has increased by Rs 761 million to Rs 3.63 billion.  Similarly, operating profit decreased by Rs 12.5 million to Rs 1.75 billion.  As of this end, the bank has collected Rs 116.54 billion in deposits and disbursed Rs 111.09 billion in loans. 

At present, the paid up capital of the bank is Rs 12.52 billion and the reserve fund is Rs 3.82 billion.  The NPL ratio of the bank has reached 1.41 percent during the review period.  Bad debt has increased from 0.97 percent.  During this period, the bank’s base rate was 10.08 percent, spread rate was 4.07 percent and cost of funds was 6.77 percent.  Similarly, the CCD ratio is 75.85 percent and the capital ratio is 14.42 percent.  The bank’s earnings per share is Rs 12.77 and net worth per share is Rs 136.47.

10. Nepal Bangladesh Bank

Nepal Bangladesh Bank has earned a profit of Rs 1.24 billion.  This is 21.62 percent less than previous fiscal year?  The bank’s profit has been affected due to non-collection of interest and installments.  As per the public financial statement, the bank has collected Rs 66.43 billion in deposits and disbursed Rs 58.96 billion in loans till the fourth quarter. 

Similarly, the bank’s earnings per share is Rs 15.01.  Net worth is Rs 154.15 per share and liquidity ratio is 34.45 percent.  The distributed profit of the bank during this period is Rs 449.11 million.  The bank has the capacity to pay a dividend of 5.28 percent.  According to the bank’s public financial statements, the bank’s net interest income and operating profit have also declined.  Net interest income stood at Rs 2.90 billion, while operating profit stood at Rs 1.80 billion.  The reserve fund of the bank, which has a paid-up capital of Rs 8.49 billion, is Rs 4.11 billion.

Conclusion

So, there a lots of commercial banks in Nepal which are providing good services. We have discussed about net profit of bank of Nepal. These days whole world is in pandemic of Corona Virus. Still these banks are providing services to their customers. However the profit is main objectives of banks but still they are dedicated to their customers and their needs.