Muktinath Bikas Bank shows decent growth in Net profit; NPL as low as 0.01%

Muktinath Bikas Bank has published the report for the 2nd quarter for the fiscal year 2074/75. The company has earned a net profit of Rs 26.43 crores, up from Rs 22.32 in the corresponding quarter of the previous fiscal year. This accounts for a growth of 18.4%.

A hefty growth is seen in both the interest income and interest expense of the company. The interest income has increased to Rs 1.31 arba, stating a growth of 69%. Interest expense has increased by massive 139.11% to Rs 75.63 crores. The net interest income has inflated by 21.27% to Rs 55.82 crores. 

Staff expense has increased to Rs 15.99 crores, with a growth of 38.71%. 

Company has also shown a growth in its operating profit, this has surged to Rs 40.46 crores with a growth of 21.22%. 

Both deposit collection and lending has shown a decent growth. Deposit collection has surged to Rs 21.73 arba, up from 14.58 arba. with a growth of approx 49%. Company's lending has increased by approx 47% to Rs 19.33 arba.  

Company has accumulated a reserve of Rs 64.14 crores, up from Rs 44.40 crores. Company now has a networth of Rs 124.25. 

Positive side :

• Above average in Interest Income.
• Growth in net interest income, Operating Profit and Net Profit.   
• Huge growth in company's reserve. 
• NPL as low a 0.01%
• Company now has an adequate capital with CAR at 15.88%

Negative Side :

• Fall in Earning per Share. 
• Hefty rise in interest expense.
•  Tight CCD ratio of 78%
• Increase in base rate (11.98% now)

(Figure In 000's)