The seventh AGM of the development bank held yesterday also decided to issue 30 percent rights share once its paid-up capital surges to Rs 30.8 crore after the distribution of the bonus shares.
After the issuance of the rights shares, the paid-up capital will shoot up to Rs 40.04 crore, bank’s CEO Biswo Mohan Adhikari told the AGM.
It may be noted here that the development bank had issued only 15 percent bonus share from the net profit it earned in the previous fiscal year 2068/69.
Releasing a notice last week, City had stated that it has posted a huge profit of almost three times in the first quarter of the current fiscal year 2070/71 compared to the corresponding quarter last year.
According to the unaudited financial report for the Q1 published by the development bank, its net profit
by the end of the first quarter has increased by 151.21 percent to Rs
1.69 crore, up from just 67 lakh during the same period last fiscal year.
The growth was mainly propelled by its core business
as its net interest income surged by 64.80 percent, to Rs 3.48 crore
from Rs 2.11 crore. This is quite impressive performance despite surplus
liquidity in the banking system of the country.
The development bank’s deposit has surged to Rs 3.16 arba, up from 2.46 arba, and its loan has also increased to Rs 2.42 arba from Rs 2.04 arba.
However, its NPL has risen from 0.72 percent to 1.63 percent.
Its EPS (annualized) stands at Rs 26.67, net worth per share at Rs 146.84 while its closing market share price was Rs 166.
Likewise, it has capital adequacy of 12.58 percent, P/E ratio (annualized) of 6.22 and liquidity ratio of 33.48 percent.
However, some of the challenges faced by the ‘B’ class development bank
include internal problems such as increased operational expenses and
insufficiency of essential and proficient resources, besides external
challenges like political instability and shrinking investment opportunities.
-sharesansar
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