Muktinath Bikas Bank Records 32.93% Q2 Net Profit Decline Despite Resilient Core Business Growth
Sun, Jan 21, 2024 9:43 AM on Latest, Financial Analysis, Company Analysis,
Muktinath Bikas Bank Limited (MNBBL) has released its second-quarter report for FY 2080/81, revealing a 32.93% decline in net profit from Rs. 62.62 Crores in Q2 FY 2079/80 to Rs. 42 Crores in Q2 FY 2080/81.
During the same quarter, the bank reported a negative distributable profit after PL Appropriation and Regulatory Adjustments, amounting to Rs. 31.72 Crores.
Customer deposits experienced a 3.55% decrease, settling at Rs. 1.12 Kharba, while loans and advances to customers saw a 1.95% increase, reaching Rs. 96.29 Arba. Despite these fluctuations, the bank's core business income, represented by Net Interest Income, increased by 2.12% to Rs. 2.08 Arba compared to the corresponding quarter of the previous year.
MNBBL's financial structure includes a paid-up capital of Rs. 7.04 Arba and Rs. 2.92 Arba in reserves and surplus.
The annualized earnings per share (EPS) for the bank stood at Rs. 11.24, with a Net worth per share of Rs. 137.03.
Notably, the company traded at a P/E multiple of 34.22 times. The Capital Adequacy Ratio (CAR) of the bank stands at 11.25%. The Non-performing loan (NPL) ratio increased to 2.51%.
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Muktinath Bikas Bank | ||
|---|---|---|---|
| Q2 2080/81 | Q2 2079/80 | Difference | |
| Paid Up Capital | 7,046,938.05 | 6,420,900.27* | 9.75% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | -317,213.09 | 673,938.06* | -147.07% |
| Reserves | 2,926,698.41 | 2,268,219.98* | 29.03% |
| Deposits | 112,316,539.35 | 116,449,870.95* | -3.55% |
| Loans & Advances | 96,298,814.03 | 94,456,965.95* | 1.95% |
| Net Interest Income | 2,087,796.42 | 2,044,435.00 | 2.12% |
| Personnel Expenses | 634,750.71 | 625,431.06 | 1.49% |
| Impairment Charges | 786,322.90 | 441,745.20 | 78.00% |
| Operating Profit | 616,966.60 | 894,619.60 | -31.04% |
| Net Profit | 420,017.37 | 626,233.72 | -32.93% |
| Total Comprehensive Income | 395,945.03 | 628,964.98 | -37.05% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -317,213.09 | 60,392.63 | -625.25% |
| Capital Adequacy (%) | 11.25 | 11.55 | -2.60% |
| NPL (%) | 2.51 | 0.98 | 156.12% |
| CD (%) | 86.57 | 84.65 | 2.27% |
| Cost of Fund (%) | 8.51 | 10.53 | -19.18% |
| Annualized EPS (In Rs.) | 11.24 | 19.59 | -42.64% |
| Net Worth per Share (In Rs.) | 137.03 | ||
| Qtr end PE Ratio (times) | 34.22 | ||
| Qtr End Market Price | 384.5 | - | - |
