शाइन रेसुङ्गा डेभलपमेन्ट बैंकको पहिलो त्रैमासिक वित्तीय विवरणShine Resunga Development Bank Q1 Unaudited Financial Results

Unaudited Financial Results (Quarterly)

For the Quarter ended 31st Ashwin 2083

Condensed Statement of Financial Position

For the Quarter ended on Ashwin End 2083

Amount in NPR

Particulars	This Quarter Ending Amount in NPR	Immediate Previous year Ending (Audited) Amount in NPR
Assets
Cash and cash equivalent	3,287,797,018	1,644,969,328
Due from Nepal Rastra Bank	3,594,879,649	3,489,669,377
Placement with Bank and Financial Institutions	-	-
Derivative financial instruments	-	-
Other trading assets	-	-
Loan and advances to B/FIs	587,889,259	688,357,731
Loan and advances to Customers	65,311,212,220	63,216,944,620
Investment Securities	14,340,960,219	17,235,625,923
Current Tax Assets	-	-
Investment in Subsidiaries	-	-
Investment in Associates	-	-
Investment Property	206,598,395	206,598,395
Property & equipment	647,247,621	655,698,234
Goodwill and Intangible assets	134,135,534	134,988,728
Deferred tax assets	20,574,197	10,388,371
Other assets	356,276,452	342,703,084
Total Assets	88,487,570,564	87,625,943,791
Liabilities
Due to Bank and Financial Institutions	325,786,906	266,971,920
Due to Nepal Rastra Bank	-	-
Derivative Financial Instruments	-	-
Deposit from customer	79,117,298,009	77,852,662,136
Borrowings	-	-
Current Tax Liabilities	10,230,047	430,767
Provisions	-	-
Deferred Tax Liabilities	-	-
Other Liabilities	405,059,059	548,353,714
Debt Securities Issued	998,094,792	998,094,792
Subordinated Liabilities	-	-
Total Liabilities	80,856,468,813	79,666,513,329
Equity
Share Capital	5,323,291,094	5,021,972,730
Share Premium	-	-
Retained Earnings	55,440,050	814,025,853
Reserves	2,252,370,607	2,123,431,879
Total Equity Attributable to equity holders	7,631,101,751	7,959,430,462
Non-controlling interest	-	-
Total Equity	7,631,101,751	7,959,430,462
Total Liabilities and equity	88,487,570,564	87,625,943,791

Statement of Distributable Profit or Loss

As on Ashwin End 2083 (As per NRB Regulation)

Amount in NPR

Particulars Current year Previous Year Corresponding (Unaudited)
Net profit or (Loss) as per statement of profit or Loss	197,635,488	203,041,914
Appropriations:
a. General reserve	(39,527,098)	(40,608,383)
b. Foreign exchange fluctuation fund	-	-
c. Capital redemption reserve	-	-
d. Corporate social responsibility fund	(1,976,355)	(2,030,419)
e. Employees' training fund	-	-
f. Other	-	-
Profit or (loss) before regulatory adjustment	156,132,035	160,403,112
Regulatory adjustment :
a. Interest Receivable(-)/ previous accured interest received(+)	(111,202,201)	(144,385,175)
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(+)	-	-
e. Deffered tax assets recognized (-)/ reversal(+)	-	-
f. Goodwill recognized (-)/ impairment of Goodwill (+)	-	-
g. Bargain purchase gain recognized(-)/reversal(+)	-	-
h. Actuarial loss recognized (-)/reversal(+)	-	-
i. Other	-	-
Net profit for the quarter end available for distribution	44,929,834	16,017,937
Opening Retained Earnings Shrawan	1,	2083	814,025,853	680,460,819
Distribution
Bonus Share Issued	(301,318,364)	-
ash Dividend Paid	(502,197,273)	-
Total Distributable Profit or (Loss) as on Quater end Ashwin End,	2083	55,440,050	696,478,756
Distributable Profit Per share (Annualized)	3.57	15.27

1. The above financial statements have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) and in compliance with NRB directives. In line with the Expected Credit Loss (ECL) Guideline and the Guidance note on Interest Income Recognition, 2025, the Bank has de-recognized interest income accrued on loans and advances classified under Stage 3. For impairment of credit exposures, the Bank has applied the higher of the total ECL provision as per NFRS 9 and the existing regulatory provision as per the Unified Directives. Bank has consider the effective Interest rate as not significant for the period of 1st quarter of FY 2083/84. Bank will assess its impact on subsequent quarter of FY 2083/84.

2. Previous year figures have been regrouped, rearranged and restated wherever necessary.

3. If the Statutory and Supervisory authority notify any remarks to change, the unaudited statement of financial position and statement of profit or loss could be changed accordingly.

4. Detail Interim Financial Reports are published in www.srdb.com.np.

Ending Quarter (YTD) Ending Quarter (YTD)

Interest Income	1,392,847,819	1,392,847,819	1,511,270,543	1,511,270,543
Interest Expense	730,286,766	730,286,766	866,069,045	866,069,045
Net Interest income	662,561,053	662,561,053	645,201,499	645,201,499
Fees and commission income	94,639,815	94,639,815	76,713,364	76,713,364
Fees and commission expense	6,825,202	6,825,202	5,528,429	5,528,429
Net Fees and commission income	87,814,613	87,814,613	71,184,935	71,184,935
Net Interest, fee and commission income	750,375,666	750,375,666	716,386,434	716,386,434
Net trading income	-	-	-	-
Other operating income	6,831,419	6,831,419	24,054,108	24,054,108
Total operating income	757,207,085	757,207,085	740,440,542	740,440,542
Impairment charge/(reversal) for loans and other losses	122,012,772	122,012,772	155,382,961	155,382,961
Net operating income	635,194,313	635,194,313	585,057,581	585,057,581
Operating expense
Personnel expenses	235,924,949	235,924,949	197,122,672	197,122,672
Other operating expenses	99,528,356	99,528,356	68,658,753	68,658,753
Depreciation & Amortisation	17,419,596	17,419,596	29,216,279	29,216,279
Operating profit	282,321,412	282,321,412	290,059,877	290,059,877
Non operating income	-	-	-	-
Non operating expense	-	-	-	-
Profit before income tax	282,321,412	282,321,412	290,059,877	290,059,877
Income Tax Expense
Current Tax	84,685,924	84,685,924	87,017,963	87,017,963
Deferred Tax	-	-	-	-
Profit/(loss) for the period	197,635,488	197,635,488	203,041,914	203,041,914
Statement of Other Comprehensive Income
Profit/(loss) for the period	197,635,488	197,635,488	203,041,914	203,041,914
Other Comprehensive Income	(23,766,927)	(23,766,927)	(45,627,690)	(45,627,690)
Total Comprehensive Income	173,868,561	173,868,561	157,414,224	157,414,224
Basic earnings per share (Annualized)	14.85	16.66
Diluted earnings per share (Annualized)	14.85	16.66
Profit attributable to:
Equity holders of the Bank	173,868,561	173,868,561	157,414,224	157,414,224
Non-controlling interest	-	-	-	-
Total	173,868,561	173,868,561	157,414,224	157,414,224

Ratios as per NRB Directive

Current Year Previous Year Corresponding (Unaudited)

Particulars This Quarter Ending Upto This Quarter This Quarter Ending Upto This Quarter

Capital fund to RWA 12.55% 14.22%

Tier 1 Capital to RWA 9.74% 11.15%

CET 1 Capital to RWA 9.74% 11.15%

Non-performing loan (NPL) to Total Loan 4.71% 4.61%

Total Loan loss provision to Total NPL 92.25% 95.25%

Cost of Funds 3.52% 4.55%

Credit to Deposit Ratio 85.14% 84.31%

Base Rate 5.39% 6.44%

Interest Rate Spread 3.87% 4.01%

Return on Equity as per NRB Directives (Annualized) 10.14% 10.89%

Return on Assets as per NRB Directives (Annualized) 0.90% 1.00%

Disclosure as per Securities Registration and Issuance Regulation, 2073 Related to Rule 26(1) of Annexure 14

For 1st Quarter of F/Y 2083/084

1. Financial Statement:

Statement of Financial Position and Statement of Profit or Loss as per Nepal Financial Reporting Standard (NFRS) including key financial indicators and ratios along with this report. There has been no any related party transaction during the period.

Key Financial Indicators and Ratios:
Earnings per share NPR	14.85	28.15
Net Worth per share NPR	143.35	1,662.27

Liquidity Ratio 25.57% Capital Adequacy Ratio 12.55%

2. Management Analysis:

a. Financial indicators during the period were at satisfactory level.

b. Major areas of focus;

- Maintaining quality of credit portfolio and managing non-performing loans

- Soliciting sustainable credit customers across the branches

- Identification of further investment opportunities

- Non funded business for fee based income

- Operational efficiency for customer centric services

- Skill enhancement of human resources

- Promotion of digital service

- Mitigating cyber security risks

- Mitigating ML/TF risks

c. As per the current statement, there is no situation which might have material effect on financial position.

3. Details relating to Legal Action:

a. Except for the lawsuit in the normal course of business there are no material cases filed by or against the institution.

b. No cases have been reported regarding filing by or filed against the promoter or director of institution for non-compliance of prevailing laws or commission of criminal offence during the period.

c. No cases have been filed against any promoter or director for financial crime.

4. Analysis of Stock Performance of Development Bank:

a. Share price and transaction are determined as per open market competition.

b. Maximum, minimum and closing share price including total share transaction number and days of transaction during the period were;

Max. Share Price : NPR 433.00 Min. Share Price : NPR 393.90

Closing price of the Share : NPR 418.00 Number of days traded : 61 days

Total volume of trading of share : 18,33,347 share

(source: website of Nepal Stock Exchange Limited)

5. Problems and Challenges:

a. Internal

- Operational efficiency

- Quality of Risk Assets

- Gradual decrease in interest spread due to competition for existing good borrowers

- Maintaining spread rate

- Limited avenues for fee-based income

b. External

- Slow demand of credit even when borrowing rate is historically low

- Keeping performing borrowers with bank due to cut throat competition

- Credit recovery

- Cyber security and digital risks

c. Strategy

- Maintaining operational and digital service efficiency

- Regular investment on skill enhancement of the HR and educate customer about financial literacy and digital risk

- Process automation of services internally as well as externally

- Improving comprehensive risk management system for adequate mitigation of risks including ML/TF.

- Efficient management of NPL and NBA

6. Corporate Governance:

To meet the provision regarding Corporate Governance, Development Bank has strictly followed all the rules & regulation issued to BFIs through Unified Directives, Circulars, BAFIA, Companies Act, SEBON Rules & Regulation and all other rules/regulations issued to BFIs. Development Bank has setup different committees like Audit Committee, Risk Management Committee, Employee Services & Facilities Committee, and Money Laundering Prevention Committee which are active in their respective field and chaired by non-executive member of Board of Directors. Similarly, Recruitment Committee, Assets Liability Management Committee and Corporate Governance Cell and other relevant committees are formed at staff level and are active in their respective field. Issues raised & recommendations made by NRB, internal & external auditor have been followed up strictly & in effective manner for better performance of Development Bank.

7. Declaration by CEO:

I, as at the date, hereby individually accept responsibility for the accuracy of the information and details contained in this report. Also hereby declare that to the best of my knowledge and belief, the information contained in this report are true, accurate and complete. No material information for the investors has been concealed.