Karnali Development Bank Reports Impressive Q2 Report with Substantial Profit Growth; EPS at Rs. 19.02
Thu, Feb 1, 2024 1:14 PM on Financial Analysis, Company Analysis, Latest,
Karnali Development Bank Limited (KRBL) has unveiled a stellar performance in its second-quarter report for the current fiscal year 2080-81, showcasing a remarkable surge in Net Profit. The financials reveal that the company has achieved an impressive net profit of Rs. 4.78 crores, a substantial increase from the Rs. 1.63 crores reported in the corresponding quarter of FY 2079-80.
The report includes a 6.07% growth in deposits, amounting to Rs. 4.66 Arba, and a 3.79% uptick in loans and advances, reaching Rs. 3.42 Arba during this quarter.
Despite an overall positive financial outlook, the Net Interest Income experienced a 21.11% decline, standing at Rs. 6.11 crores in the second quarter of FY 2080-81. However, the company has successfully managed to curtail personnel expenses, which have seen a 7.44% decrease, totaling Rs. 3.01 crores.
The Annualized Earnings per Share (EPS) for the development bank stands at Rs. 19.02, accompanied by a Net worth per Share of Rs. 110.17. However, the non-performing loan (NPL) ratio increased from 3.17% to 4.47%.
Notably, the Impairment charge allocation has exhibited a significant positive shift, declining by an impressive 458.34%, thereby bolstering the overall profitability of the company.
In terms of financial structure, the company boasts Rs. 50.28 crores in paid-up capital and reserves amounting to Rs. 39.23 crores.
Major Financial Highlights:
* Figure is of Immediate Fiscal Year Ending
| Particulars (In Rs '000) | Karnali Development Bank | ||
|---|---|---|---|
| Q2 2080/81 | Q2 2079/80 | Difference | |
| Paid Up Capital | 502,830.00 | 502,830.00* | 0.00% |
| Share Premium | 458.93 | 458.93* | 0.00% |
| Retained Earnings | -341,711.99 | 40,745.33* | -938.65% |
| Reserves | 392,383.84 | 49,333.51* | 695.37% |
| Deposits | 4,663,227.45 | 4,396,444.77* | 6.07% |
| Loans & Advances | 3,422,576.61 | 3,297,662.48* | 3.79% |
| Net Interest Income | 61,173.65 | 77,546.39 | -21.11% |
| Personnel Expenses | 30,164.29 | 32,587.30 | -7.44% |
| Impairment Charges/(Reversal) for loans and advances | -36,420.78 | 10,163.68 | -458.34% |
| Operating Profit | 47,830.69 | 16,371.52 | 192.16% |
| Net Profit | 47,830.69 | 16,371.52 | 192.16% |
| Capital Adequacy (%) | 10.10 | 11.38 | -11.25% |
| NPL (%) | 4.47 | 3.17 | 41.01% |
| Cost of Fund (%) | 9.01 | 9.96 | -9.54% |
| EPS (In Rs.) | 19.02 | 6.51 | 192.16% |
| Net Worth per Share (In Rs.) | 110.17 | 118.01 | -6.64% |
| Qtr End Market Price | 448 | - | - |
| Qtr end PE Ratio (times) | 23.55 | ||
