Century Commercial Bank shows a decent growth of 45% in net profit ; Reserve almost doubles

Century Commercial Bank has published its 2nd quarter report for the FY 2074/75. The company has earned a net profit of Rs 32.51 crores as of 2nd quarter. 

Century Commercial Bank had earned a net profit of Rs 22.39 crores in the 2nd quarter of last fiscal year. This shows a growth of 45%. A growth of 20% is seen in the operating profit. The net interest income has also shown a growth of 47%, with this rising to Rs 76 crores. The interest income and expense has surged by 114% and 163% in the review period. 

A balanced growth is seen in the deposit collection and loan extension. Company has collected a deposit of Rs 52.17 arba by the second quarter, this stood at Rs 32.67 arba at the same time in the last fiscal year. Thus accounting a growth of 59%. A rise of 62% is seen in the loan extension . 

Century Commercial bank now has a paid-up capital of Rs 7.68 arba and a reserve of Rs 1.76 arba. The company's reserve has almost doubled in the review period. 

Key Ratios:

• Earning per Share :     Rs 8.47
• Networth                :     Rs 122.93
• P/E ratio                 :     23.49 times
• P/B ratio                 :     1.62 times
• NPL                        :     0.99%
• CCD                       :     76.06%

Positive side:

• Balanced growth in deposit collection and lending. 
• 110% rise in reserve.
• Decent growth in net interest income and net profit. 
•  Low NPL
• Adequate Capital 

Negative Side:

• Huge interest expense.
• Rising cost of fund. 
• Fall in EPS 
• Tight CCD ratio. 

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