Nepal Rastra Bank approved merger request of five BFIs; find out which ones

Nepal Rastra Bank (NRB) has given the final permission to five BFIs to go for merger.

As per the officials at NRB, Saptakoshi Development Bank (SKDBL) and Kabeli Bikas Bank (KEBL) have received the final approval for merger from NRB. Similarly, Rama Roshan Laghubitta, NRN Laghubitta and Creative Laghubitta Bittiya Sanstha have also received the approval for merger.

Saptakoshi Development Bank Limited (SKDBL) has registered a fall of 9.05% in its net profit in the third quarter of the FY 2075/76.

According to the unaudited financial report published by the development bank, its net profit has decreased to Rs 2.26 crore in third quarter, from Rs.2.48 crore in the corresponding quarter of the fiscal year 2074/75.

SKDBL’s net interest income has risen to Rs 9.01 crore in Q3 as compared to Rs 7.08 crore in the corresponding quarter of the last fiscal year. As of Q3, it has a paid up capital of Rs 52.37 crore with a reserve of Rs 4.06 crore.

The bank also collected deposits of Rs 1.61 arba till Q3, up from Rs 1.18 arba in the corresponding period last year. Likewise, it has extended loans and advances of Rs 1.65 arba in Q3 whereas in the same period last year, the figure stood at Rs 1.22 arba.

The non-performing loan of the development bank has increased from 0.50% to 1.68% by the end of the third quarter.

SKDBL’s annualized Earnings per Share (EPS) stands at Rs 5.76 per share and has a Net worth of 107.75 per share. The bank posted an annualized PE Ratio of 21.18 times.

Similarly, Kabeli Bikas Bank Limited (KEBL) has reported rise in its net profit in the third quarter of the current fiscal year 2075/76.

According to the unaudited financial report published by the development bank, its net profit has risen to Rs 2.12 crore in the third quarter, from Rs 1.16 crore in the corresponding quarter of the last fiscal year 2074/75.

KEBL’s net interest income has increased to Rs 5.83 crore in the third quarter as compared to Rs 4.01 crore in the corresponding quarter last year. Its deposits collection increased to Rs 82.15 crore in Q3 from Rs 62.7 crore in the corresponding period last year.

Up to the end of Q3, it extended loans and advances of Rs 80.3 crore whereas in the same period last year, the figure stood at Rs 61.8 crore. Its non-performing loan has decreased in this period to 2.89% compared to 3.94% in the corresponding quarter.

Its paid-up capital now stands at Rs 28.43 crore whereas KEBL reports a decrease in reserve and surplus to Rs 5.19 crore in Q3 from Rs 6.18 crore in the corresponding quarter.

However, its earnings per share (EPS) stand at Rs. 9.94 in Q3. Its net worth per share stands at Rs. 118.28 per share.