Kumari Bank Limited shows a euphoric growth in net profit; interest income soar by 103.47%

Kumari Bank Ltd. has published the report for the 2nd quarter for the fiscal year 2074/75. The company has earned a net profit of Rs 48.02 crore, up from Rs 27.94crore in the corresponding quarter of the previous fiscal year. This accounts for a growth of 71.90%.

A soaring growth is seen in both the interest income and interest expense of the company. The interest income has increased to Rs 2.93 arba, stating a growth of 103.47%. Interest expense has increased by massive 138.20% to Rs 2.36. The net interest income has increased by 48.03% to Rs 82.17 crore.

Staff expense has increased to Rs 29.60 crore, with a growth of 84.67%. 

The company operating profit, this has dropped to Rs 34.56 arab with a decline of 3.84%. 

Deposit collection has surged to Rs 57.68 arba, up from 39.95 arba with a growth of 44.39%. Company's lending has increased by approx. 51.29% to Rs 50.92 arba.  

The company reserve has increased to Rs 2.59 arab, up from Rs 1.64arab. Networth of Rs 143.40 has been recorded. 

Positive side:    

• An increase in Net profit by 71.90%
• Company now has an adequate capital with CAR at 14.48%
• Soar in Interest Income.

Negative Side:

• Fall in Earning per Share.
• Hefty rise in interest expense.
• A minor decline in operating profit.
• Staff expenses rise by 84.67%

 

(Figure In 000's)

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Particulars	As of 2074/75	As of 2073/74	Percentage Change
Paid-up Capital	5,969,496	2,699,167	121.16
Reserve	2,590,947	1,643,566	57.64
Deposit	57,680,957	39,946,389	44.40
Net Interest Income	821,671	555,043	48.04
Operating Profit	3,45,586	359,399	-3.84
Staff Expense	295,959	160,266	84.67
Net profit	480,206	279,352	71.90
Cost of Fund	7.83	4.7
EPS	16.09	27.95
Networth	143.40	160.89