Gandaki Bikas Bank reports a tremendous rise in deposit and lending ; Net profit surges by 24.64%

As per the 3rd quarter report, Gandaki Bikas Bank has earned a net profit of Rs 34 crores, this is 24.64% more then that earned in the previous year. The company now has an EPS of Rs 19.69. 

The National level development bank now has a paid up capital of Rs 2.30 arba with a reserve of Rs 1.29 arba. The company has a per share networth of Rs 156.33. In terms of deposit, a growth of massive 67.49% was registered with total deposit collection of Rs 20.43 arba in the review period. Similarly, growth of 63.54% was reported as the company's lending accounted for 18.32 arba. 

The main contributor for the rise in company's net profit was the company's primary income source i.e net interest Income. This registered a growth of 32.67%. Similarly, income from fee, comission and other operation has also significantly increased. However, the rise in number of branches has resulted in a massive rise of 75% in staff expense and can be seen as a negative side for now. The company's operating profit surged by nearly 23% as compared to the previous year. 

Positive Sides:      

• Decent growth in Net Profit 
• Tremendous rise in Deposit and Lending. 
• 133% rise in reserve. 
• NPL as low as 0.84%
• Adequate Capital

Negative Sides:

• Tremendous rise in Staff expense. 
• High Cost of fund.

Key Indicators 

Earning per Share  : Rs 19.69 

P/E Ratio                : 11.93 times 

P/B Ratio                : 1.5 times 

NPL                        : 0.84%