Shangri-la Development Bank Limited has released its unaudited financial report for the fourth quarter of the last fiscal year, showing a big jump in net profit and improved capacity to distribute dividends.
Shangri-la Development Bank Limited has posted its fourth-quarter financial report for the last fiscal year. According to report, the net profit of the bank increased by 46.69 percent to reach Rs 88 crore 99 lakh. In the previous fiscal year, the bank had earned Rs 60 crore 66 lakh in net profit.
The main reasons behind this profit growth are decrease in impairment charges, higher net interest income, and better operating income. The impairment charge, which is the money set aside for bad loans, decreased significantly from Rs 34 crore 54 lakh to just Rs 9 crore 13 lakh. This shows that the bank did a good job in managing bad loans and recovering old debts.
Operating Income and Key Figures
During this period, the net interest income of the bank went up by 16.83 percent to reach Rs 2 arba 42 crore. Similarly, the total operating income increased by 19.98 percent to Rs 2 arba 95 crore. The operating profit also grew by 52.98 percent to Rs 1 arba 35 crore, which show that bank is earning well from its main business.
However, the non-performing loan ratio, which means bad loans, increased from 5.52 percent to 6.87 percent. Even though bad loans went up, the drop in impairment charges helped the bank to maintain a very positive profit growth.
Deposits, Cost of Funds, and Dividend Capacity
During the review period, the bank have collected Rs 56 arba 92 crore in deposits and gave out Rs 45 arba 87 crore in loans. The credit-to-deposit ratio of the bank is 83.37 percent. Also, the cost of funds decreased from 5.01 percent to 3.54 percent, and the base rate dropped from 7.08 percent to 5.57 percent, meaning that the bank had to spend less money to get its funds.
The paid-up capital of the bank stands at Rs 3 arba 73 crore. It has a distributable profit of Rs 49 crore 23 lakh and has accumulated Rs 2 arba 10 crore in its reserve fund.
The earnings per share of the bank increased from Rs 17.06 to Rs 23.83. Since the distributable earnings per share reached Rs 13.19, the capacity of the bank to distribute dividend has improved compared to last year. Meanwhile, the net worth per share of the bank is Rs 169.50.
You can also read: Miteri Development Bank Profit Increases Moderately With Big Improvement in Interest Income
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