NIC ASIA Bank reports huge deposit collection of 1.20 kharba; Operating profit remains stagnant

NIC ASIA Bank has published the report for the 2nd quarter for the fiscal year 2074/75. The bank has lately been expanding aggressively and the report was much awaited by the investors.

The company has earned a net profit of Rs 57.17 crores till the 2^nd quarter. The net profit was Rs 72.14 crores in the corresponding quarter of the previous fiscal year. This accounts for a drop of 20.71%.

A hefty growth is seen both in the interest income and interest expense of the company. The interest income has increased to massive Rs 5.55 arba, stating a growth of 106%. Interest expense too has surged by massive 160% to Rs 4 arba. The net interest income has inflated by 34% to Rs 1.54 arba. 

Staff expense has increased to Rs 47.30 crores, showing a growth of 25.84%. The operating expense including the aggressive advertisement has resulted a surge in company’s operating expense section by 63.67% to Rs 47.28 crores.

Company’s operating profit remains almost stagnant at Rs 76.34 crores. 

Both deposit collection and lending has shown a balanced growth. Deposit collection has surged to massive Rs 1.20 kharba, up from 79.07 arba showing a growth of 52%. Company's lending has increased by 51.4% to Rs 1.02 kharba.  

Company has accumulated an additional reserve of Rs 78.02 lakh, raising the company’s total reserve to Rs 2.65 arba. Company now has a networth of Rs 133.07. 

Positive sides:

• Huge deposit and lending.
• Significant Growth in net interest income.   
• NPL as low as 0.26%

Negative Sides:

• Huge growth in Operating expenses
• Hefty rise in interest expense.
• Tight CCD ratio of 78.19%
• Tight CAR of 13.59%
• Increase in base rate (10.74% now)

Key Ratios:

• EPS                : Rs 14.24
• Networth       : Rs 133.07
• ROE               : 10.70%
• ROA               : 0.82%
• Cost of Fund  : 7.60%
• NPL                : 0.26%