Muktinath Bikas Bank net profit rises by 20.4% ; EPS dips to Rs 22

As per the 3rd quarter report published by the company today, the net profit of Muktinath Bikas Bank has surged by 20.4% to Rs 42.75 crores. The same in the corresponding quarter of previous fy was Rs 35.51 crores. This has resulted a dip in EPS from Rs 30.69 to Rs 22. 

The rise in Net Interest Income by 20.76% is the major contributor for the profit growth. Similarly, companys' operating profit has increased to Rs 65.76 crores accounting a growth of 22.52%. 

Muktinath Bikas Bank has a paid up capital of Rs 2.59 arba and has Rs 80.46 crores in the reserve. The companys' book value has decreased to Rs 131.05 per shares. The same was Rs 141.15 per share last year. In term of deposit, The  company has collected a deposit of Rs 24.54 arba, which is astonishing 62.04% higher then the previous year. Similarly, Loan disbursement has  increased by 55.16% to Rs 21.99 arba. The companys' NPL is as low as 0.01%.

Positive Sides:

• Decent growth in Operating profit and Net profit. 
• Astonoshing rise in Deposit collection and loan extension. 
• Low NPL
• Company has an adequate capital now.

Negative Sides:

• Hefty Rise in Staff Expenses. 
• High CCD Ratio of 79.21%
• Drop in EPS and Networth. 

Key Indicators:

• EPS          : Rs 22
• Networth  : Rs 130.54
• P/E Ratio  : 18 times
• P/B Ratio  : 3.03 times
• NPL           : 0.1 %
• ROE          : 16.79%
• ROA          : 1.79 %