Kumari Bank Limited has released its unaudited financial report for the Q4 of the fiscal year 2081/82, showing a major turnaround in profitability. The bank, which had struggled with low earnings in the previous fiscal year, has posted a strong recovery in key financial indicators. Here’s a detailed look at the bank’s performance, broken down for easier understanding.
Key Financial Highlights (Q4 FY 2081/82)
| Metric | Q4 FY 2081/82 | Q4 FY 2080/81 | Change |
|---|---|---|---|
| Net Profit | Rs. 2.11 Arba | Rs. 46.08 Lakhs | Significant increase |
| Paid-up Capital | Rs. 26.22 Arba | Rs. 26.22 Arba | No change |
| Retained Earnings | -Rs. 2.79 Arba | -Rs. 5.37 Arba | Loss reduced |
| Reserves | Rs. 13.85 Arba | Rs. 13.94 Arba | ↓ 0.62% |
| Customer Deposits | Rs. 3.64 Kharba | Rs. 3.32 Kharba | ↑ 9.46% |
| Borrowings | Rs. 1.38 Arba | Rs. 1.34 Arba | ↑ 2.98% |
| Loans and Advances | Rs. 2.60 Kharba | Rs. 2.68 Kharba | ↓ 2.79% |
| Net Interest Income | Rs. 11.55 Arba | Rs. 10.80 Arba | ↑ 6.95% |
| Impairment Charges | Rs. 2.79 Arba | Rs. 6.84 Arba | ↓ 59.18% |
| Operating Profit | Rs. 6.13 Arba | Rs. 97.39 Crores | ↑ 529% |
| Capital Adequacy Ratio | 12.98% | 11.42% | Improved |
| Non-Performing Loans (NPL) | 6.42% | 5.96% | Slight increase |
| Cost of Funds | 4.74% | 6.74% | ↓ 29.67% |
| Annualized EPS | Rs. 8.07 | Rs. 0.02 | Sharp rise |
| Net Worth per Share | Rs. 142.19 | Rs. 132.71 (approx.) | ↑ 7.14% |
| P/E Ratio | 27.23 times | — | Based on the current price |
| Market Price (End of Q4) | Rs. 219.77 | — | — |
Profitability Rebounds Strongly
Kumari Bank made a significant jump in its net profit, crossing Rs. 2.11 Arba, which is a sharp contrast to the mere Rs. 46.08 Lakhs earned in the same quarter last year. This improvement is largely due to higher interest income and a big drop in impairment charges, which helped boost operating profit massively.
Stable Capital and Deposit Growth
The bank maintained its paid-up capital at Rs. 26.22 Arba. Meanwhile, it saw healthy growth in customer deposits, which rose by over 9%. This shows increased trust from depositors. Borrowings also went up slightly by 2.98%.
Lending and Asset Quality
Despite positive profit and deposit growth, the bank’s loan book shrank by 2.79%. This could indicate cautious lending or reduced credit demand. Additionally, the NPL ratio increased to 6.42%, suggesting a slight rise in loan defaults.
Better Cost Control and Efficiency
A key highlight was the significant reduction in impairment charges, dropping by over 59%. This directly helped improve profitability. The cost of funds also fell by nearly 30%, reaching 4.74%. Lower funding costs mean the bank can earn more from its interest-based business.
Shareholders’ Return Improving
The annualized earnings per share (EPS) rose sharply to Rs. 8.07, from just Rs. 0.02 a year earlier. Similarly, net worth per share climbed to Rs. 142.19. These are strong indicators that the bank is back on a profitable track, making it more attractive to investors. The P/E ratio of Kumari Bank at the quarter-end remained 27.23, with a market price of Rs. 219.77 per share.
Final Thoughts
Kumari Bank’s Q4 report shows a strong financial comeback, mainly driven by improved earnings, better cost control, and stronger capital. While loan growth remains a concern and NPLs slightly increased, the overall picture is positive. Investors should keep an eye on whether this performance continues into the next fiscal year.
