Machhapuchchhre Bank has reported a 25.24% year-on-year increase in net profit for the second quarter of FY 2082/83. According to the bank’s unaudited financial statement, net profit reached Rs 1 arba 1 crore 11 lakh, up from Rs 80 crore 73 lakh in the same period last year.
The profit growth was primarily driven by an increase in interest income and fee–commission income, while higher impairment charges put pressure on operating profit. As of the second quarter, the bank’s interest income rose by 4.16% to Rs 2 arba 94 crore 10 lakh, whereas operating profit declined by 10.22% to Rs 1 arba 45 crore 68 lakh. Fee and commission income grew from Rs 67 crore 21 lakh to Rs 82 crore 7 lakh during the same period.
Impairment charges increased sharply from Rs 20 crore 47 lakh to Rs 57 crore 42 lakh, reflecting the bank’s cautious provisioning approach. Despite this, the non-performing loan ratio improved slightly, decreasing by 0.29 percentage points to 4.25%.
During the review period, Machhapuchchhre Bank mobilized Rs 2 arba 4 crore 4 lakh in deposits and extended Rs 1 arba 54 crore in loans. The bank’s distributable profit as of Poush-end stood at Rs 43 crore 63 lakh, providing a dividend capacity of 7.22%, while the base rate declined to 5.48%.
The bank’s paid-up capital is Rs 12 arba 8 crore 62 lakh, with share premium of Rs 3 crore 8 lakh, retained earnings of Rs 43 crore 63 lakh, and reserves totaling Rs 6 arba 98 crore 18 lakh. Earnings per share increased by Rs 3.37 to Rs 16.73, and net worth per share reached Rs 161.60. The bank’s price-to-earnings (P/E) ratio currently stands at 13.61 times.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
