NCC Bank shows a tremendous rise in Operating Profit; Comparatively less provisioning seen as the main reason

NCC Bank has published the report for 3rd quarter of the fiscal year 2074/75.

The company has earned a net profit of Rs 54.31 crores till the end of 3rd quarter. The net profit was merely Rs 16.73 crores in the corresponding quarter of the previous fiscal year. This accounts for an astounding growth of 224.53%. NCCB now has an eps of Rs 15.48.

A decent increment is seen both in the interest income and interest expense of the company. The interest income has surged to Rs 4.79 arba, from Rs 3.80 arba last year. Interest expense too has inflated to Rs 3.78 arba. The net interest income has slipped by 34.67% in the review period to Rs 1.01 arba. 

Staff expense has increased to Rs 47.98 crores, from Rs 37.23 crores last year. The operating expense is decreased by decent 10% to Rs 34.29 crores.

Company’s operating profit has increased tremendously by 300% to Rs 34.63 crores. The operating profit was low last year due to high provisioning. The company has provisioned Rs 23.34 crores for possible losses this year, the same was Rs 1 arba last year.  

Both deposit collection and lending has shown a decent growth. Deposit collection has surged to Rs 59.01 arba, up from 55.26 arba last year. Company's lending has increased to Rs 52.12 arba from Rs 48.70 arba.  NCCB has a NPL of 3.97%

Positive Sides:

• Above average growth in Net Profit. 
• Growth in deposit and lending. 
• Earning per share of Rs 15.48 
• Hefty Reserves of 3.12 arba
• Tremendous growth in operating profit

Negative Sides:

• High NPL of 3.97%
• Paid-up Capital still at Rs 4.67 

Key Ratios:

EPS                : 15.48
Networth        : Rs 166.85
NPL                : 3.97%

P/E Ratio       : Rs 21.06