City Development Bank profit rises by 151% in Q1 2070

City Development Bank Limited has 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 today, 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.

ANNOUNCEMENT

-Sharesansar