Saptakoshi Development Bank Limited announced an 86.18 percent jump in net profit for the last fiscal year’s fourth quarter, reaching Rs. 15.04 crore, with a significant improvement in its financial health partly due to a reduction in bad loans.
Saptakoshi Development Bank Limited recently published its unaudited financial statements for the fourth quarter of the previous fiscal year. According to these reports, the bank’s net profit saw an impressive rise of 86.18 percent, climbing to Rs. 15 crore 4 lakh 73 thousand. In comparison, during the same period of the prior fiscal year, the bank had earned a net profit of Rs. 8 crore 8 lakh 20 thousand.
This significant boost in the bank’s profit came from notable improvements in operating profit and a sharp drop in non-performing loans (NPLs). This development shows that the bank’s ability to operate well and the quality of its assets have both gotten better.
During the review period, the bank’s net interest income saw a slight decrease of 0.47 percent, settling at Rs. 23 crore 34 lakh 25 thousand. However, operating profit surged by an impressive 132.05 percent, reaching Rs. 24 crore 79 lakh 65 thousand. The non-performing loan ratio also improved significantly, dropping by 4.50 percentage points to 6.15 percent. This clearly demonstrate the bank’s better management of credit risk.
In the same period, the bank successfully gathered deposits totaling Rs. 8 arba 88 crore 32 lakh and provided loans amounting to Rs. 5 arba 56 crore 25 lakh. Compared to the previous year, deposits grew by 66.44 percent, while loan disbursements increased by 10.40 percent. The Credit-to-Deposit (CD) ratio also decreased from 79.01 percent to 67.63 percent.
The bank’s reserve fund experienced a growth of 29.74 percent, now standing in Rs. 44 crore 80 lakh 10 thousand.
Saptakoshi Development Bank’s paid-up capital is currently Rs. 83 crore 43 lakh 38 thousand. However, the distributable profit recorded a negative balance of Rs. 55 crore 88 lakh 53 thousand.
For the review period, the bank’s Earnings Per Share (EPS) increased by Rs. 8.35, reaching Rs. 18.04. The Net Worth Per Share was approximately Rs. 86.71. Additionally, the bank’s Base Rate was maintained at 8.85 percent, and the Cost of Funds at 5.70 percent.
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