Shine Resunga Interest expense inflates by 129.76%; net profit drops by 8.76%

Shine Resunga Development Bank has published its 2nd quarter report for the fy 2074/75. This regional level development bank has shown a plunge of 8.76% in its net profit. 

As of the published report, SHINE has earned a net profit of Rs 15.14 crores. The profit was Rs 16.59 crores in the corresponding quarter of last fiscal year. A decline of 13.58% is noticed in company's operational profit. It has fallen to Rs 21.97 crores, down from Rs 25.43 crores in the corresponding quarter of last fiscal year. 

The development bank's net interest income has plummeted to Rs 30.31 crores, down from Rs 31.26  crores. This shows a fall of 3.06%. A significantly high increase of 129.76% is seen in the company's Interest expense that has declined the overall profit in the review period.   

On the positive side, the company has significantly reduced it non-performing loan to 0.17% from 0.35% last year. The Capital has an adequate capital with CAR at 15.33%. CCD ratio being 76.34% shows company still has room for lending. Comany's reserve has increased in this period, with Networth per share at Rs 130.51.

On the negative side, a sharp rise is seen in the company's interest expense, resulting a decline in net profit. The annualized EPS has fallen to Rs 21.97 currently. 

Being 4-10 district development bank, SHINE needs to have a paid-up capital of Rs 1.20 arba. The paid-up capital stands a Rs 1.37 arba as of 2nd quarter report. The company has recently distributed a bonus share of 25% .