FY 079-80 Q4 Report: Higher Impairment Allocation Led to Only Marginal Improvement in Net Profits for Muktinath Bikas Bank
Sun, Aug 6, 2023 9:04 AM on Latest, Financial Analysis,
Muktinath Bikas Bank Limited (MNBBL) has made public its fourth-quarter report for the recently concluded financial year 2079-80 with a marginal increase in its Net profit by 1.64 percent. As of FY 2079-80 end, the development bank has made Rs. 1.36 Arba as opposed to Rs. 1.34 Arba it had earned in the corresponding quarter of the FY 2078-79.
However, the company's Net Interest Income has improved by a considerable 23.57 percent totaling Rs. 4.11 Arba as of the last quarter of the FY 2079-80.
Both deposits and loans have increased steadily by 11.25 percent and 9.15 percent. As of FY 2079-80 end, the bank has accumulated Rs. 1.16 Kharba in deposits and disbursed Rs. 94.75 Arba in loans.
The company's Earnings per Share (EPS) stands at Rs. 21.24, alongside a Net worth of Rs. 147.00.
The company has Rs. 64.40 crores available for distribution amongst its shareholders with its distributable profits per share at Rs. 10.03.
The Impairment allocation of the company has increased massively and amounts to Rs. 55.22 crores as of FY 2079-80’s end, which has negatively affected the profitability of the company.
MNBBL maintains Rs. 6.42 Arba in paid-up capital and has Rs. 3.01 Arba in the form of reserves and surplus (reserve + retained earnings).
Major Financial Highlights:
| Particulars (In Rs '000) | Muktinath Bikas Bank | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 6,420,900.27 | 5,657,180.86 | 13.50% |
| Retained Earnings | 644,072.63 | 805,522.23 | -20.04% |
| Reserves | 2,373,709.49 | 1,613,887.99 | 47.08% |
| Deposits | 116,449,870.95 | 104,675,072.26 | 11.25% |
| Loans & Advances | 94,755,258.34 | 86,811,948.42 | 9.15% |
| Net Interest Income | 4,114,742.32 | 3,329,779.38 | 23.57% |
| Personnel Expenses | 1,362,953.95 | 1,216,354.52 | 12.05% |
| Impairment Charges/(Reversal) for loans and advances | 552,216.79 | 74,712.19 | - |
| Operating Profit | 1,976,709.87 | 1,933,373.47 | 2.24% |
| Net Profit | 1,363,867.52 | 1,341,805.29 | 1.64% |
| Distributable profit | 644,072.63 | 805,522.23 | -20.04% |
| Distributable profit per Share | 10.03 | 14.24 | -29.56% |
| Base Rate (%) | 11.68 | 11.15 | 4.75% |
| Capital Adequacy (%) | 11.87 | 11.80 | 0.59% |
| Non-performing Loan (NPL) (%) | 0.89 | 0.21 | - |
| Cost of Fund (%) | 9.52 | 9.24 | 3.03% |
| EPS (In Rs.) | 21.24 | 23.72 | -10.45% |
| Net Worth per Share (In Rs.) | 147.00 | 142.77 | 2.96% |
| Qtr End Market Price | 407 | - | - |
