Kanchan Development Bank publishes 2nd quarter report; check out the positive and negative aspects of the company

Kanchan Development Bank has published its 2nd quarter report for the fy 2074/75. This regional level development bank has shown a minor growth of 4.92% in its net profit. 

As of the published report, KADBL has earned a net profit of Rs 3.12 crores. The profit was Rs 2.97 crores in the corresponding quarter of last fiscal year. A growth of 12.34% is noticed in company's operational profit. It has grown to Rs 4.70 crores, up from Rs 4.18 crores in the corresponding quarter of last fiscal year. 

The development bank increased its net interest income to Rs 8.12 crores, up from Rs 7.64 crores. This shows an upsurge of 6.25%. 

On the positive side, the company has significantly reduced it non-performing loan to 0.66% from 1.97% last year. The Capital has an adequate capital with CAR at 17.30%. CCD ratio being 75.84% shows company still has room for lending. Comany's reserve has significantly increased in this period, with Networth per share rising to Rs 131.50.

On the negative side, a sharp decline is seen in the company's Earning per Share, with annualized EPS falling to Rs 13.86 currently. A significant increase of 49% is seen the company's staff expense. 

Being a regional level development bank, KADBL needs to have a paid-up capital of Rs 50 crore. The paid-up capital stands a Rs 45 crore as of 2nd quarter report. The has recently distributed a bonus share of 12.33% which is yet to be capitalized. Upon capitalization, the paid-up capital will rise to Rs 50.60 crores.