Nirdhan Utthan Bank net profit slips; EPS shrinks by 46.35%

 Nirdhan Utthan Bank Ltd. has published the report for 2nd quarter of the fiscal year 2074/75.

The company has earned a net profit of Rs 26.94 crores till the end of 2nd quarter. The net profit was Rs 30.13  crores in the corresponding quarter of the previous fiscal year. This accounts for a fall of  10.59%. NUBL now has an eps of Rs 53.89.

The interest income has surged to Rs 1.20 arba, stating a growth of 16.12%. Interest expense has grown by massive 92.04% to Rs 58.4 crore. The net interest income decreased by 15.44% to Rs 61.85 crore. 

Staff expense has increased to Rs 28.53  crores, showing a decline of 6.42%.

Company’s operating profit decreased by 21.11% to Rs 37.04 crores. 

Both deposit collection and lending has shown an average growth. Deposit collection has surged to Rs 7.33, up from Rs 5.23 last year showing a growth 40.16%. Company's lending has increased by 15.98% to Rs 13.55 arab. NUBL has NPL of 0.65%.

The company’s reserve has Shrink by 1..73 % to Rs  92.18 crore. The company now has a networth of Rs 192.18. 

Positive sides:

• Decent growth in deposit and lending
• NPL as low as 0.65%

Negative Sides:

• Hefty rise in interest expense.
• EPS decreased to Rs 53.89

Key Ratios:

EPS:                Rs 53.89
Networth:         Rs 192.18
Cost of Fund:   8.98%
NPL:                0.65%

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