Shine Resunga Development Bank Limited has published its unaudited fourth-quarter financial report, showing an outstanding 82.97 percent growth in net profit.
Shine Resunga Development Bank Limited has posted its unaudited financial report for the fourth quarter of the last fiscal year. According to report, bank’s net profit has increased by 82.97 percent, reaching Rs 1.18 arba. In the previous year’s same period, the company had earned a net profit of Rs 65 crore.
Why Did the Profit Increase?
This massive jump in net profit is mainly because of the growth in the bank’s net interest income and a huge decrease in the impairment charge, which is the money kept aside for bad loans.
By the end of the fourth quarter, Shine Resunga Development Bank’s net interest income grew by 6.90 percent to Rs 2.83 arba. Similarly, the total operating income went up by 6.39 percent to Rs 3.17 arba. Even better, the impairment charge set aside for loan risks decreased by 78.12 percent, dropping to Rs 21 crore from Rs 95 crore in the previous year. Because of this drop in impairment charge, the bank’s operating profit saw a big rise of 90.74 percent to Rs 1.74 arba.
Rise in Bad Loans
However, the bank’s Non-Performing Loan (NPL) ratio has increased by 0.66 percentage points to reach 4.93 percent. Since the bad loans are now very close to 5 percent, it shows that the bank need to be more strict in recovering its loans.
Deposits and Loan Growth
During the review period, the bank collected Rs 77.85 arba in deposits from customers and floated Rs 63.27 arba in loans. Compared to last year, the bank’s deposit collection increased by 8.48 percent and loan disbursement rose by 11.18 percent. The bank’s credit-to-deposit (CD) ratio stands at 84.18 percent, which means the bank still has comfortable capacity to give out more loans.
Key Financial Indicators
Currently, the bank has a paid-up capital of Rs 5.02 arba. The distributable profit available for distributing dividends to shareholders is Rs 85 crore. The bank also has Rs 2.14 arba in its reserve fund.
With the rise in net profit, the bank’s Earnings Per Share (EPS) also went up by Rs 10.28 to reach Rs 23.52. The distributable EPS, which shows the actual dividend capacity for investors, is Rs 16.86. Additionally, the net worth per share of the bank is Rs 159.48, and the price-to-earnings (P/E) ratio is 17.64 times.
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