Kamana Sewa Bikas Bank has reported a 22.34% year-on-year increase in net profit based on its unaudited financial results for the second quarter of the ongoing fiscal year 2082/83. According to the published statement, the bank earned a net profit of Rs 39 crore 45 lakh during the review period, compared to Rs 32 crore 24 lakh in the same period of the previous fiscal year.
The bank’s profit growth was mainly supported by an increase in net interest income and a decline in impairment charges. Net interest income rose by 11.19% to Rs 1 arba 21 crore 14 lakh, while total operating income increased by 10.82% to Rs 56 crore 72 lakh as of the second quarter. During the same period, impairment charges declined to Rs 18 crore 71 lakh from Rs 19 crore 64 lakh a year earlier.
Asset quality also improved during the review period, with the bank’s non-performing loan ratio declining by 0.25 percentage points to 4.10%. This indicates a moderate improvement in loan recovery and credit risk management compared to the previous year.
As of the second quarter, Kamana Sewa Bikas Bank had mobilized deposits amounting to Rs 63 arba 62 crore 43 lakh and extended loans totaling Rs 52 arba 10 crore 82 lakh. These figures reflect continued expansion in both deposit collection and credit disbursement activities.
Despite the rise in overall profitability, the bank’s distributable profit declined by 21.25%. As of Poush-end, distributable profit stood at Rs 29 crore 57 lakh, based on which the bank’s dividend capacity has been calculated at 15.32%.
The bank’s paid-up capital stands at Rs 3 arba 86 crore 19 lakh, while retained earnings amount to Rs 29 crore 57 lakh and reserves total Rs 2 arba 24 crore 25 lakh. Earnings per share increased by Rs 2.06 to Rs 20.43, and net worth per share reached Rs 158.07 during the review period. The bank’s price-to-earnings ratio currently stands at 22.17 times.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
