Kamana Sewa Bikas Bank Incurs Huge Spike in Impairment Charges, Negatively Affecting Net Profits in Q4
Thu, Aug 3, 2023 7:56 AM on Financial Analysis, Latest,
Kamana Sewa Bikas Bank Limited (KSBBL) is the second national-level development bank to make public its fourth quarter report for the recently concluded financial year 2079-80 followed by Lumbini Bikas Bank Limited (LBBL).
Kamana Sewa Bikas Bank as of the last quarter of FY 079-80, has made a Net Profit of Rs. Rs. 43.11 crores, which compared to the corresponding quarter of the fiscal year 2078-79 is 26.93 percent less.
The development bank has incurred a massive spike of 76.10 percent in the impairment charges up to the last quarter of FY 2079-80, totaling Rs.50.03 crores, which has negatively affected the profitability of the company.
The Net Interest Income—core business revenue— has increased in comparison by 8.65 percent, while as of the last quarter of the financial year, the Operating profit has shrunk by 20.05 percent. As of FY 079-80 last quarter, the company's Net Interest Income and Operating Profit stood at Rs. 2.16 Arba and Rs. 69.15 crores, respectively.
With a decline in Net Profits, the Earnings per Share (EPS) of the company has decreased to Rs. 13.14, while the Net worth per Share is Rs. 146.46, which has improved marginally.
The Bank has Rs. 5.80 crores in distributable profits to its shareholders, while its distributable profit per share despite an EPS of Rs. 13.14 is Rs. 1.77 only.
The financial institution has Rs. 3.28 Arba in paid-up capital and Rs. 1.46 Arba in reserves and Rs. 5.80 crores in retained earnings.
| Particulars (In Rs '000) | Kamana Sewa Bikas Bank | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 3,281,164.67 | 3,142,577.02 | 4.41% |
| Share Premium | - | - | - |
| Retained Earnings | 58,095.57 | 146,719.99 | -60.40% |
| Reserves | 1,466,278.36 | 1,075,282.32 | 36.36% |
| Deposits | 53,472,410.56 | 46,256,070.30 | 15.60% |
| Loans & Advances | 43,913,926.22 | 42,362,425.92 | 3.66% |
| Net Interest Income | 2,165,030.46 | 1,992,714.71 | 8.65% |
| Personnel Expenses | 727,497.08 | 698,610.06 | 4.13% |
| Impairment charge/(reversal) for loans and other losses | 500,362.32 | 284,127.85 | 76.10% |
| Operating Profit | 691,512.40 | 864,877.74 | -20.05% |
| Net Profit | 431,198.78 | 590,085.29 | -26.93% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 58,095.57 | - | - |
| Distributable Profit per Share | 1.77 | - | - |
| Capital Adequacy (%) | 12.26 | 12.13 | 1.07% |
| Non Performing Loan (NPL) (%) | 2.98 | 2.31 | 29.00% |
| Cost of Fund (%) | 9.37 | 8.85 | 5.88% |
| EPS (In Rs.) | 13.14 | 18.78 | -30.01% |
| Net Worth per Share (In Rs.) | 146.46 | 138.89 | 5.45% |
| Qtr end PE Ratio (times) | 24.88 | - | - |
| Qtr End Market Price | 327 | - | - |
