गरिमा विकास बैंकको प्रथम त्रैमासिक अपरिष्कृत वित्तीय विवरणGarima Bikas Bank Q1 Unaudited Financial Results
- वर्ग:Category:
- Financial Analysis
- प्रकाशित मिति:Published:
- Published on November 1, 2026
गरिमा विकास बैंक लि.
Garima Bikas Bank Ltd.
नेपाल राष्ट्र बैंकबाट 'ख' वर्गको इजाजतपत्रप्राप्त संस्था
Unaudited Financial Statement
As on First Quarter (31/06/2083)
Condensed Consolidated Statement of Financial Position
As on Quarter Ended 31st Ashoj 2083
Group
| Particulars | This Quarter Ending | Immediate Previous Year Ending (Audited) |
|---|---|---|
| Assets | ||
| Cash and cash equivalent | 3,026,175,960 | 2,952,082,037 |
| Due from Nepal Rastra Bank | 8,219,063,888 | 4,068,883,377 |
| Placement with Bank and Financial Institutions | - | - |
| Derivative financial instruments | - | - |
| Other trading assets | - | - |
| Loan and Advances to B/FIs | 3,127,332,766 | 3,359,449,873 |
| Loans and advances to customers | 80,229,200,125 | 78,215,661,746 |
| Investment in securities | 17,371,887,583 | 21,201,711,844 |
| Current Tax Assets | - | 2,671,142 |
| Investment in subsidiaries | - | - |
| Investment in Associates | - | - |
| Investment property | 634,718,975 | 630,034,975 |
| Property and equipment | 1,815,501,914 | 1,808,433,931 |
| Goodwill and Intangible Assets | 104,882,208 | 104,009,884 |
| Deferred tax assets | 79,647,977 | 80,800,531 |
| Other assets | 879,916,045 | 868,278,738 |
| Total Assets | 115,488,327,442 | 113,292,018,077 |
| Liabilities | ||
| Due to Bank and Financial Institutions | 899,907,888 | 1,391,929,724 |
| Due to Nepal Rastra Bank | - | - |
| Derivative Financial instruments | - | - |
| Deposit from customers | 101,535,607,523 | 98,469,870,197 |
| Borrowings | 79,858,066 | 81,020,263 |
| Current Tax Liabilities | 43,020,101 | - |
| Provisions | - | - |
| Deferred tax liabilities | 799,449 | - |
| Other liabilities | 1,501,575,289 | 1,554,539,523 |
| Debt securities issued | 996,682,331 | 996,682,331 |
| Subordinated Liabilities | - | - |
| Total liabilities | 105,057,450,647 | 102,494,042,037 |
| Equity | ||
| Share Capital | 6,623,483,204 | 6,021,348,367 |
| Share Premium | - | - |
| Retained Earning | 75,885,073 | 1,196,425,514 |
| Reserves | 3,619,783,242 | 3,471,582,530 |
| Total equity attributable to equity holders | 10,319,151,519 | 10,689,356,411 |
| Non-controlling interests | 111,725,277 | 108,619,629 |
| Total equity | 10,430,876,795 | 10,797,976,040 |
| Total liabilities and equity | 115,488,327,442 | 113,292,018,077 |
Condensed Consolidated Statement of Profit or Loss
For the Quarter Ended 31st Ashoj 2083
Statement of Distributable Profit or Loss
For the Quarter Ended 31st Ashoj 2083 (As per NRB Regulation)
(Amount in NPR)
Particulars Bank
| Current Year upto this Quarter YTD Previous Year Corresponding Quarter YTD | ||
| Net profit or (loss) as per statement of profit or loss | 240,124,250 | 250,575,182 |
| Appropriations: | ||
| a. General reserve | (48,024,850) | (50,115,036) |
| b. Foreign exchange fluctuation fund | - | (778,057) |
| c. Capital redemption reserve | (41,666,667) | (41,666,667) |
| d. Corporate social responsibility fund | (2,401,242) | (2,505,752) |
| e. Employees' training fund | (4,781,562) | (5,398,237) |
| f. Other | - | - |
| Investment Adjustment Reserve | - | - |
| Corporate social responsibility fund utilization | 2,500,000 | 2,910,612 |
| Employees' training fund utilization | 4,680,902 | 3,604,946 |
| Unrealised Gain on Investment in Associates | - | - |
| Other Adjustment/restatement | - | - |
| Profit or (loss) before regulatory adjustment | 150,430,831 | 156,626,992 |
| Regulatory adjustment : | ||
| a. Interest receivable (-)/previous accrued interest received (+) | (67,292,064) | (120,815,877) |
| b. Short loan loss provision in accounts (-)/reversal (+) | - | - |
| c. Short provision for possible losses on investment (-)/reversal (+) | - | - |
| d. Short loan loss provision on Non Banking Assets (-)/reversal (+) | (2,331,227) | (3,342,473) |
| e. Deferred tax assets recognised (-)/ reversal (+) | - | - |
| f. Goodwill recognised (-)/ impairment of Goodwill (+) | - | - |
| g. Bargain purchase gain recognised (-)/resersal (+) | - | - |
| h. Acturial loss recognised (-)/reversal (+) | - | - |
| i. Other (+/-) | 112,045 | 537,398 |
| Lease Payment | - | - |
| Dividend Income from Associates | - | - |
| Income Attributable from Associates | - | - |
| Share Issued Expenses Directly Charged to equity | - | - |
| Share Issued Expenses- Directly Charged to Equity- Tax Impact | - | - |
| Gain on Disposal of Share Classified into OCI | - | - |
| Current Tax on Gain on Disposal of Share Classified into OCI | - | - |
| Distributable profit or (loss) | 80,919,585 | 33,006,040 |
| Opening Retained Earning as on Shrawan | 1,206,628,392 | 599,214,090 |
| Adjustment(+/-) | - | - |
| Distribution | ||
| Bonus Share Issued | (602,134,837) | - |
| Cash Dividend Paid | (602,134,837) | - |
| Total Distributable Profit or (Loss) as on end Date | 83,278,303 | 632,220,130 |
| Annualised Distributable Profit/Loss per Share | 5.03 | 12.87 |
1. The above financial statements have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) in line with NRB Directives. In compliance with NRB's ECL Guidelines, Bank has de-recognized interest income on loans and advances classified as Lifetime ECL under Stage-3. Bank has considered the impairment on credit exposures as the higher of total ECL provision as per NFRS 9 and existing regulatory provision in Unified Directives. Separate reporting of ECL shall be done to NRB by the Bank. Bank has considered the impact of Effective Interest Rate as not significant for the period of 1st quarter of FY 2083-084. Bank will assess its impact on subsequent quarters of FY 2083-084.
2. The unaudited financial figures are subject to change if instructed by external auditors and regulatory authorities.
3. Loans and advances includes staff loans and accrued interest receivables on loans and are presented net off loan impairments.
4. Personnel expenses includes employee bonus calculated as per bonus act.
5. Previous year's corresponding quarter ending figures have been regrouped, rearranged and restated wherever necessary.
6. The detailed interim report has been published in website of the bank.
7. The group financial statement includes the Garima Capital Ltd. (formerly known as KCL Astute Capital Ltd) which is the subsidiary of the bank.
Quarter (YTD) Quarter (YTD) Quarter (YTD)
NPR NPR NPR NPR NPR NPR
| Interest Income | 1,822,922,547 | 1,822,922,547 | 2,054,573,667 | 2,054,573,667 | 1,821,733,488 | 1,821,733 |
| Interest Expense | 903,041,647 | 903,041,647 | 1,057,284,254 | 1,057,284,254 | 900,919,223 | 900,919 |
| Net interest income | 919,880,899 | 919,880,899 | 997,289,413 | 997,289,413 | 920,814,264 | 920,814 |
| Fees and Commission Income | 168,707,971 | 168,707,971 | 128,958,623 | 128,958,623 | 152,785,062 | 152,785 |
| Fees and Commission Expense | 3,073,048 | 3,073,048 | 3,229,595 | 3,229,595 | 290,987 | 290 |
| Net fee and Commission | 165,634,923 | 165,634,923 | 125,729,028 | 125,729,028 | 152,494,075 | 152,494 |
| Net interest fee and commission income | 1,085,515,822 | 1,085,515,822 | 1,123,018,441 | 1,123,018,441 | 1,073,308,339 | 1,073,308 |
| Net Trading Income | 12,251,795 | 12,251,795 | 6,585,796 | 6,585,796 | 5,885,915 | 5,885 |
Other Operating Income (22,546) (22,546) 41,635,412 41,635,412 (22,820) (22
| Total operating income | 1,097,745,072 | 1,097,745,072 | 1,171,239,649 | 1,171,239,649 | 1,079,171,434 | 1,079,171 |
| Impairment charge/(reversal) for loans and other losses | 254,291,576 | 254,291,576 | 333,193,656 | 333,193,656 | 254,291,576 | 254,291 |
| Net Operating income | 843,453,495 | 843,453,495 | 838,045,992 | 838,045,992 | 824,879,858 | 824,879 |
| Operating expenses - | ||||||
| Personnel Expense | 299,891,177 | 299,891,177 | 302,897,380 | 302,897,380 | 293,188,794 | 293,188 |
| Other Operating Expenses | 162,870,906 | 162,870,906 | 146,325,798 | 146,325,798 | 160,823,177 | 160,823 |
| Depreciation and amortisation | 30,273,263 | 30,273,263 | 29,569,234 | 29,569,234 | 28,765,558 | 28,765 |
| Operating Profit | 350,418,149 | 350,418,149 | 359,253,581 | 359,253,581 | 342,102,329 | 342,102 |
| Non operating income | 932,314 | 932,314 | 340,290 | 340,290 | 932,314 | 932 |
| Non operating expense | - | - | - | - | - | - |
| Profit before income tax | 351,350,463 | 351,350,463 | 359,593,871 | 359,593,871 | 343,034,643 | 343,034 |
| Income tax expense | 104,862,396 | 104,862,396 | 107,894,859 | 107,894,859 | 102,910,393 | 102,910 |
| Current tax | 102,910,393 | 102,910,393 | 107,382,261 | 107,382,261 | 102,910,393 | 102,910 |
| Deferred tax | 1,952,004 | 1,952,004 | 512,598 | 512,598 | - | - |
| Profit for the period | 246,488,066 | 246,488,066 | 251,699,012 | 251,699,012 | 240,124,250 | 240,124 |
Condensed Consolidated Statement of Other Comprehensive Income
Profit for the period 246,488,066 246,488,066 251,699,012 251,699,012 240,124,250 240,124
Total Other comprehensive (11,452,475) (11,452,475) (62,466,636) (62,466,636) (11,452,475) (11,452
| Total Comprehensive income for the period | 235,035,592 | 235,035,592 | 189,232,376 | 189,232,376 | 228,671,775 | 228,671 |
| Profit attributable to: | ||||||
| Equity holders of the bank | 231,929,944 | 231,929,944 | 188,683,928 | 188,683,928 | 228,671,775 | 228,671 |
| Non-controlling interest | 3,105,648 | 3,105,648 | 548,447 | 548,447 | - | - |
| Profit for the period | 235,035,592 | 235,035,592 | 189,232,376 | 189,232,376 | 228,671,775 | 228,671 |
| Earnings per share: | ||||||
| Basic earnings per share | - | 14.89 | - | 17.72 | - | 1 |
| Diluted earnings per Share | - | 14.89 | - | 17.72 | - | 1 |
Ratios as per NRB Directive
Group
Particulars Current Year Previous Year Current Year
This Quarter Up to This Quarter Ending(YTD) This Quarter Up to This Quarter Ending(YTD) This Quarter Up to This Quarter Ending(YTD)
Capital fund to RWA - 12.84% - 13.57% - 12
Tier 1 Capital to RWA - 10.86% - 11.29% - 10
CET 1 Capital to RWA - 10.86% - 11.29% - 10
Non-performing loan (NPL) to total loan - 4.81% - 4.73% - 4
Total loan loss provision to Total NPL - 104.09% - 120.72% - 104
Cost of Funds - 3.46% - 4.42% - 3
Return on Equity - 9.29% - 10.76% - 9
Return on Assets - 0.86% - 0.96% - 0
Credit to Deposit Ratio - 84.18% - 82.43% - 84
Base Rate - 5.18% - 6.39% - 5
Interest Rate Spread - 4.05% - 4.59% - 4
1. Financial Detail
a) NFRS compliant Quarterly statement of financial position and statement of profit or loss of first quarter has been published along with this report. Transactions with related parties are as follows:
Related Party Nature of Transaction Amount (Rs.)
Garima Capital Ltd. Deposit with Bank 85,784.13
Garima Capital Ltd. Interest paid by Bank on deposit 2,269.78
b) Major Financial Indicators
| Earnings per Share (Rs.) | 14.50 | 25.91 |
| Price Earnings ratio (Times) | 28.62 | 9.15 |
| Net Worth per Share (Rs.) | 155.68 | 1,740.07 |
| Return on Total Asset (%) | 0.84 | 12.84 |
2. Management Analysis:
Bank reported a net profit of Rs. 240,124,250 for the first quarter of FY 2083/84, representing a decline of 4.17% compared to the corresponding period of the previous fiscal year. Despite the challenging economic environment, the Bank continues to maintain a sound capital adequacy position and adequate liquidity. However, difficulties in loan recovery have resulted in a marginal increase in the Non-Performing Assets (NPA) ratio to 4.81%, compared to 4.77% as of Ashad end 2083. Bank remains focused on strengthening its financial performance, achieving its business objectives, enhancing shareholder returns, and delivering quality services to its customers.
3. Details Relating to Legal Action
a) Case filed by or against the Bank in this year: No such cases have been filed except those arising the normal course of the business.
b) Case relating to disobedience of prevailing law or commission criminal offence filed by or against the Promoter or Director of the Bank: No such information has been received.
c) Case relating to financial crime filed against any Promoter or Director: No such information has been received.
4. Analysis of Stock Performance of the Bank
The Bank's share price and transaction are determined according to the demand and supply of shares in the market. Maximum, minimum and last share price of the Bank including total share transaction number, volume and days of transaction during the quarter are:
| Price History Transaction History | ||
| Maximum Price (Rs.) | 460.00 | 49,06,672 |
| Minimum Price (Rs.) | 398.00 | 16,417 |
Closing Prince (Rs.) 415.00 Transaction Days 61
5. Problems and Challenges
a) Internal Challenges:
• Challenges in the recovery of problematic loans.
• Increasing trend of operating costs.
• Challenges in increasing non-interest income.
• Challenges in retaining skilled manpower and high value clients.
• Increase in credit risk and operational risk.
• Assets Quality Management.
b) External Challenges:
• Stiff competition among Banks & Financial Institutions.
• Changes in regulatory provisions.
• Risk of cyber security.
• Increasing trend of non-performing loans.
• Excess liquidity in the market.
c) Strategy:
• Optimal utilization of assets and resources of the bank.
• Developing quality human resources through robust training and development.
• Adopting proactive loan recovery management.
• Identification of new possibilities for the business development.
• Prioritization of digitization in banking services to enhance efficiency.
• Implication of effective cost management practices.
• Diversifying product and service portfolio of the bank.
• Strengthening internal control and governance mechanisms.
• Enhancing AML/CFT compliance and risk monitoring in alignment with FATF standards.
6. Corporate Governance
The Bank is committed towards high standard of corporate governance, professionalism, ethical standard and compliance with superior standard in business practice. In order to maintain the superior standard of corporate governance, various committees have been constituted to oversee banking operation and these committees are actively involved in major policies/plan related decisions. The Bank is committed to fully comply with all directives and guidelines issued by regulatory bodies.
7. Declaration by Chief Executive Officer on the truthfulness and accuracy of information
I hereby declare that all the information provided in this document is true, complete and factual and that I take personal responsibility for any deviation thereof. I also declare that no information or data of the Bank that may assist investors in making investment decisions have been concealed in any manner.
Garima Bikas Bank Ltd.
Garima Bikas Bank Ltd.
Licensed as 'B' Class Financial Institution by Nepal Rastra Bank
Unaudited Financial Statement
As on First Quarter (31/06/2083)
Condensed Consolidated Statement of Financial Position
As on Quarter Ended 31st Ashoj 2083
Group
| Particulars | This Quarter Ending | Immediate Previous Year Ending (Audited) |
|---|---|---|
| Assets | ||
| Cash and cash equivalent | 3,026,175,960 | 2,952,082,037 |
| Due from Nepal Rastra Bank | 8,219,063,888 | 4,068,883,377 |
| Placement with Bank and Financial Institutions | - | - |
| Derivative financial instruments | - | - |
| Other trading assets | - | - |
| Loan and Advances to B/FIs | 3,127,332,766 | 3,359,449,873 |
| Loans and advances to customers | 80,229,200,125 | 78,215,661,746 |
| Investment in securities | 17,371,887,583 | 21,201,711,844 |
| Current Tax Assets | - | 2,671,142 |
| Investment in subsidiaries | - | - |
| Investment in Associates | - | - |
| Investment property | 634,718,975 | 630,034,975 |
| Property and equipment | 1,815,501,914 | 1,808,433,931 |
| Goodwill and Intangible Assets | 104,882,208 | 104,009,884 |
| Deferred tax assets | 79,647,977 | 80,800,531 |
| Other assets | 879,916,045 | 868,278,738 |
| Total Assets | 115,488,327,442 | 113,292,018,077 |
| Liabilities | ||
| Due to Bank and Financial Institutions | 899,907,888 | 1,391,929,724 |
| Due to Nepal Rastra Bank | - | - |
| Derivative Financial instruments | - | - |
| Deposit from customers | 101,535,607,523 | 98,469,870,197 |
| Borrowings | 79,858,066 | 81,020,263 |
| Current Tax Liabilities | 43,020,101 | - |
| Provisions | - | - |
| Deferred tax liabilities | 799,449 | - |
| Other liabilities | 1,501,575,289 | 1,554,539,523 |
| Debt securities issued | 996,682,331 | 996,682,331 |
| Subordinated Liabilities | - | - |
| Total liabilities | 105,057,450,647 | 102,494,042,037 |
| Equity | ||
| Share Capital | 6,623,483,204 | 6,021,348,367 |
| Share Premium | - | - |
| Retained Earning | 75,885,073 | 1,196,425,514 |
| Reserves | 3,619,783,242 | 3,471,582,530 |
| Total equity attributable to equity holders | 10,319,151,519 | 10,689,356,411 |
| Non-controlling interests | 111,725,277 | 108,619,629 |
| Total equity | 10,430,876,795 | 10,797,976,040 |
| Total liabilities and equity | 115,488,327,442 | 113,292,018,077 |
Condensed Consolidated Statement of Profit or Loss
For the Quarter Ended 31st Ashoj 2083
Statement of Distributable Profit or Loss
For the Quarter Ended 31st Ashoj 2083 (As per NRB Regulation)
(Amount in NPR)
Particulars Bank
| Current Year upto this Quarter YTD Previous Year Corresponding Quarter YTD | ||
| Net profit or (loss) as per statement of profit or loss | 240,124,250 | 250,575,182 |
| Appropriations: | ||
| a. General reserve | (48,024,850) | (50,115,036) |
| b. Foreign exchange fluctuation fund | - | (778,057) |
| c. Capital redemption reserve | (41,666,667) | (41,666,667) |
| d. Corporate social responsibility fund | (2,401,242) | (2,505,752) |
| e. Employees' training fund | (4,781,562) | (5,398,237) |
| f. Other | - | - |
| Investment Adjustment Reserve | - | - |
| Corporate social responsibility fund utilization | 2,500,000 | 2,910,612 |
| Employees' training fund utilization | 4,680,902 | 3,604,946 |
| Unrealised Gain on Investment in Associates | - | - |
| Other Adjustment/restatement | - | - |
| Profit or (loss) before regulatory adjustment | 150,430,831 | 156,626,992 |
| Regulatory adjustment : | ||
| a. Interest receivable (-)/previous accrued interest received (+) | (67,292,064) | (120,815,877) |
| b. Short loan loss provision in accounts (-)/reversal (+) | - | - |
| c. Short provision for possible losses on investment (-)/reversal (+) | - | - |
| d. Short loan loss provision on Non Banking Assets (-)/reversal (+) | (2,331,227) | (3,342,473) |
| e. Deferred tax assets recognised (-)/ reversal (+) | - | - |
| f. Goodwill recognised (-)/ impairment of Goodwill (+) | - | - |
| g. Bargain purchase gain recognised (-)/resersal (+) | - | - |
| h. Acturial loss recognised (-)/reversal (+) | - | - |
| i. Other (+/-) | 112,045 | 537,398 |
| Lease Payment | - | - |
| Dividend Income from Associates | - | - |
| Income Attributable from Associates | - | - |
| Share Issued Expenses Directly Charged to equity | - | - |
| Share Issued Expenses- Directly Charged to Equity- Tax Impact | - | - |
| Gain on Disposal of Share Classified into OCI | - | - |
| Current Tax on Gain on Disposal of Share Classified into OCI | - | - |
| Distributable profit or (loss) | 80,919,585 | 33,006,040 |
| Opening Retained Earning as on Shrawan | 1,206,628,392 | 599,214,090 |
| Adjustment(+/-) | - | - |
| Distribution | ||
| Bonus Share Issued | (602,134,837) | - |
| Cash Dividend Paid | (602,134,837) | - |
| Total Distributable Profit or (Loss) as on end Date | 83,278,303 | 632,220,130 |
| Annualised Distributable Profit/Loss per Share | 5.03 | 12.87 |
1. The above financial statements have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) in line with NRB Directives. In compliance with NRB's ECL Guidelines, Bank has de-recognized interest income on loans and advances classified as Lifetime ECL under Stage-3. Bank has considered the impairment on credit exposures as the higher of total ECL provision as per NFRS 9 and existing regulatory provision in Unified Directives. Separate reporting of ECL shall be done to NRB by the Bank. Bank has considered the impact of Effective Interest Rate as not significant for the period of 1st quarter of FY 2083-084. Bank will assess its impact on subsequent quarters of FY 2083-084.
2. The unaudited financial figures are subject to change if instructed by external auditors and regulatory authorities.
3. Loans and advances includes staff loans and accrued interest receivables on loans and are presented net off loan impairments.
4. Personnel expenses includes employee bonus calculated as per bonus act.
5. Previous year's corresponding quarter ending figures have been regrouped, rearranged and restated wherever necessary.
6. The detailed interim report has been published in website of the bank.
7. The group financial statement includes the Garima Capital Ltd. (formerly known as KCL Astute Capital Ltd) which is the subsidiary of the bank.
Quarter (YTD) Quarter (YTD) Quarter (YTD)
NPR NPR NPR NPR NPR NPR
| Interest Income | 1,822,922,547 | 1,822,922,547 | 2,054,573,667 | 2,054,573,667 | 1,821,733,488 | 1,821,733 |
| Interest Expense | 903,041,647 | 903,041,647 | 1,057,284,254 | 1,057,284,254 | 900,919,223 | 900,919 |
| Net interest income | 919,880,899 | 919,880,899 | 997,289,413 | 997,289,413 | 920,814,264 | 920,814 |
| Fees and Commission Income | 168,707,971 | 168,707,971 | 128,958,623 | 128,958,623 | 152,785,062 | 152,785 |
| Fees and Commission Expense | 3,073,048 | 3,073,048 | 3,229,595 | 3,229,595 | 290,987 | 290 |
| Net fee and Commission | 165,634,923 | 165,634,923 | 125,729,028 | 125,729,028 | 152,494,075 | 152,494 |
| Net interest fee and commission income | 1,085,515,822 | 1,085,515,822 | 1,123,018,441 | 1,123,018,441 | 1,073,308,339 | 1,073,308 |
| Net Trading Income | 12,251,795 | 12,251,795 | 6,585,796 | 6,585,796 | 5,885,915 | 5,885 |
Other Operating Income (22,546) (22,546) 41,635,412 41,635,412 (22,820) (22
| Total operating income | 1,097,745,072 | 1,097,745,072 | 1,171,239,649 | 1,171,239,649 | 1,079,171,434 | 1,079,171 |
| Impairment charge/(reversal) for loans and other losses | 254,291,576 | 254,291,576 | 333,193,656 | 333,193,656 | 254,291,576 | 254,291 |
| Net Operating income | 843,453,495 | 843,453,495 | 838,045,992 | 838,045,992 | 824,879,858 | 824,879 |
| Operating expenses - | ||||||
| Personnel Expense | 299,891,177 | 299,891,177 | 302,897,380 | 302,897,380 | 293,188,794 | 293,188 |
| Other Operating Expenses | 162,870,906 | 162,870,906 | 146,325,798 | 146,325,798 | 160,823,177 | 160,823 |
| Depreciation and amortisation | 30,273,263 | 30,273,263 | 29,569,234 | 29,569,234 | 28,765,558 | 28,765 |
| Operating Profit | 350,418,149 | 350,418,149 | 359,253,581 | 359,253,581 | 342,102,329 | 342,102 |
| Non operating income | 932,314 | 932,314 | 340,290 | 340,290 | 932,314 | 932 |
| Non operating expense | - | - | - | - | - | - |
| Profit before income tax | 351,350,463 | 351,350,463 | 359,593,871 | 359,593,871 | 343,034,643 | 343,034 |
| Income tax expense | 104,862,396 | 104,862,396 | 107,894,859 | 107,894,859 | 102,910,393 | 102,910 |
| Current tax | 102,910,393 | 102,910,393 | 107,382,261 | 107,382,261 | 102,910,393 | 102,910 |
| Deferred tax | 1,952,004 | 1,952,004 | 512,598 | 512,598 | - | - |
| Profit for the period | 246,488,066 | 246,488,066 | 251,699,012 | 251,699,012 | 240,124,250 | 240,124 |
Condensed Consolidated Statement of Other Comprehensive Income
Profit for the period 246,488,066 246,488,066 251,699,012 251,699,012 240,124,250 240,124
Total Other comprehensive (11,452,475) (11,452,475) (62,466,636) (62,466,636) (11,452,475) (11,452
| Total Comprehensive income for the period | 235,035,592 | 235,035,592 | 189,232,376 | 189,232,376 | 228,671,775 | 228,671 |
| Profit attributable to: | ||||||
| Equity holders of the bank | 231,929,944 | 231,929,944 | 188,683,928 | 188,683,928 | 228,671,775 | 228,671 |
| Non-controlling interest | 3,105,648 | 3,105,648 | 548,447 | 548,447 | - | - |
| Profit for the period | 235,035,592 | 235,035,592 | 189,232,376 | 189,232,376 | 228,671,775 | 228,671 |
| Earnings per share: | ||||||
| Basic earnings per share | - | 14.89 | - | 17.72 | - | 1 |
| Diluted earnings per Share | - | 14.89 | - | 17.72 | - | 1 |
Ratios as per NRB Directive
Group
Particulars Current Year Previous Year Current Year
This Quarter Up to This Quarter Ending(YTD) This Quarter Up to This Quarter Ending(YTD) This Quarter Up to This Quarter Ending(YTD)
Capital fund to RWA - 12.84% - 13.57% - 12
Tier 1 Capital to RWA - 10.86% - 11.29% - 10
CET 1 Capital to RWA - 10.86% - 11.29% - 10
Non-performing loan (NPL) to total loan - 4.81% - 4.73% - 4
Total loan loss provision to Total NPL - 104.09% - 120.72% - 104
Cost of Funds - 3.46% - 4.42% - 3
Return on Equity - 9.29% - 10.76% - 9
Return on Assets - 0.86% - 0.96% - 0
Credit to Deposit Ratio - 84.18% - 82.43% - 84
Base Rate - 5.18% - 6.39% - 5
Interest Rate Spread - 4.05% - 4.59% - 4
1. Financial Detail
a) NFRS compliant Quarterly statement of financial position and statement of profit or loss of first quarter has been published along with this report. Transactions with related parties are as follows:
Related Party Nature of Transaction Amount (Rs.)
Garima Capital Ltd. Deposit with Bank 85,784.13
Garima Capital Ltd. Interest paid by Bank on deposit 2,269.78
b) Major Financial Indicators
| Earnings per Share (Rs.) | 14.50 | 25.91 |
| Price Earnings ratio (Times) | 28.62 | 9.15 |
| Net Worth per Share (Rs.) | 155.68 | 1,740.07 |
| Return on Total Asset (%) | 0.84 | 12.84 |
2. Management Analysis:
Bank reported a net profit of Rs. 240,124,250 for the first quarter of FY 2083/84, representing a decline of 4.17% compared to the corresponding period of the previous fiscal year. Despite the challenging economic environment, the Bank continues to maintain a sound capital adequacy position and adequate liquidity. However, difficulties in loan recovery have resulted in a marginal increase in the Non-Performing Assets (NPA) ratio to 4.81%, compared to 4.77% as of Ashad end 2083. Bank remains focused on strengthening its financial performance, achieving its business objectives, enhancing shareholder returns, and delivering quality services to its customers.
3. Details Relating to Legal Action
a) Case filed by or against the Bank in this year: No such cases have been filed except those arising the normal course of the business.
b) Case relating to disobedience of prevailing law or commission criminal offence filed by or against the Promoter or Director of the Bank: No such information has been received.
c) Case relating to financial crime filed against any Promoter or Director: No such information has been received.
4. Analysis of Stock Performance of the Bank
The Bank's share price and transaction are determined according to the demand and supply of shares in the market. Maximum, minimum and last share price of the Bank including total share transaction number, volume and days of transaction during the quarter are:
| Price History Transaction History | ||
| Maximum Price (Rs.) | 460.00 | 49,06,672 |
| Minimum Price (Rs.) | 398.00 | 16,417 |
Closing Prince (Rs.) 415.00 Transaction Days 61
5. Problems and Challenges
a) Internal Challenges:
• Challenges in the recovery of problematic loans.
• Increasing trend of operating costs.
• Challenges in increasing non-interest income.
• Challenges in retaining skilled manpower and high value clients.
• Increase in credit risk and operational risk.
• Assets Quality Management.
b) External Challenges:
• Stiff competition among Banks & Financial Institutions.
• Changes in regulatory provisions.
• Risk of cyber security.
• Increasing trend of non-performing loans.
• Excess liquidity in the market.
c) Strategy:
• Optimal utilization of assets and resources of the bank.
• Developing quality human resources through robust training and development.
• Adopting proactive loan recovery management.
• Identification of new possibilities for the business development.
• Prioritization of digitization in banking services to enhance efficiency.
• Implication of effective cost management practices.
• Diversifying product and service portfolio of the bank.
• Strengthening internal control and governance mechanisms.
• Enhancing AML/CFT compliance and risk monitoring in alignment with FATF standards.
6. Corporate Governance
The Bank is committed towards high standard of corporate governance, professionalism, ethical standard and compliance with superior standard in business practice. In order to maintain the superior standard of corporate governance, various committees have been constituted to oversee banking operation and these committees are actively involved in major policies/plan related decisions. The Bank is committed to fully comply with all directives and guidelines issued by regulatory bodies.
7. Declaration by Chief Executive Officer on the truthfulness and accuracy of information
I hereby declare that all the information provided in this document is true, complete and factual and that I take personal responsibility for any deviation thereof. I also declare that no information or data of the Bank that may assist investors in making investment decisions have been concealed in any manner.