Rastriya Banijya Bank Reports 175.52% Growth in Q1 Net Profit
Rastriya Banijya Bank Limited has reported a remarkable 175.52% year-on-year growth in net profit, earning Rs. 1.64 billion in the first quarter of FY 2083/84, compared to Rs. 598.73 million in the corresponding period of the previous fiscal year. The significant growth was driven by a sharp increase in net interest income and a substantial decline in impairment charges.
According to the bank's unaudited financial statements, Rastriya Banijya Bank recorded a net profit of Rs. 1.64 billion during the review period, up from Rs. 598.73 million in the same quarter last fiscal year. The bank's operating profit surged by 175.91% to Rs. 2.35 billion, compared to Rs. 852.41 million in the corresponding quarter last year. Similarly, net interest income increased by 37.46% to Rs. 4.01 billion from Rs. 2.92 billion. Meanwhile, impairment charges declined significantly by 63.51% to Rs. 355.71 million from Rs. 974.93 million. Personnel expenses, however, increased by 5.56% to Rs. 1.51 billion during the review period. On the balance sheet front, the bank's paid-up capital remained unchanged at Rs. 15.64 billion. Retained earnings increased by 27.43% to Rs. 1.37 billion, while reserves grew by 3.44% to Rs. 40.73 billion. The bank's total deposits increased by 4.16% to Rs. 714.67 billion, while loans and advances grew by 2.51% to Rs. 340.43 billion. Its distributable profit after profit/loss appropriation and regulatory adjustments stood at Rs. 1.37 billion, compared to Rs. 214.73 million in the corresponding quarter last year. Regarding financial indicators, the bank's capital adequacy ratio stood at 11.53%, compared to 11.64% last year. Its non-performing loan (NPL) ratio increased slightly to 3.89% from 3.83%, while the cost of funds declined to 2.81% from 3.16%. The bank's annualized earnings per share (EPS) surged to Rs. 42.20 from Rs. 15.32, marking a 175.52% increase. Similarly, net worth per share increased by 2.94% to Rs. 369.23 from Rs. 358.68 in the corresponding period.