Sangrila Development Bank has reported an increase in its net profit for the fiscal year 2081/82. As per the unaudited fourth-quarter financial report, the bank recorded a 6.5% growth in net profit compared to the previous year.
During the review period, the bank earned Rs. 53.70 crores in net profit, up from Rs. 50.42 crores in the previous fiscal year.
Core Earnings Slightly Decreased
The bank’s net interest income saw a slight decline. It decreased from Rs. 1.90 Arba in FY 2080/81 to Rs. 1.88 Arba in FY 2081/82. Despite this drop, the growth in fees, commissions, and other operating income helped boost overall profitability.
Key Financial Highlights
- Earnings Per Share (EPS): Rs. 15.10
- Return on Equity (ROE): 9.77%
- Net Worth Per Share: Rs. 156.71
- Distributable Profit: Rs. 41.38 crores
- Potential Dividend Capacity: Up to 11.64%
Rise in Non-Performing Loans (NPL)
The bank’s Non-Performing Loans (NPL) increased during the year.
- Previous Fiscal Year NPL: 3.93%
- Current Fiscal Year NPL: 5.64%
This indicates a need for more focus on credit risk management in the coming periods.
Market Valuation
As of now, Sangrila Development Bank’s shares are trading at Rs. 484 per unit in the secondary market. The current financial performance supports the potential for dividend distribution, which could attract investor interest.
Conclusion
Sangrila Development Bank has shown stable profit growth despite a minor decline in net interest income. Strong fee-based income and operational efficiency helped offset pressure from rising non-performing loans. With a healthy EPS, decent ROE, and sufficient distributable profit, the bank stands in a position to offer moderate returns to its investors.
