Kathmandu: Kamana Sewa Development Bank reported a net profit of Rs 588.7 million by the end of the third quarter of the current fiscal year, marking a notable improvement in its financial performance.
According to the bank’s latest financial statement, this represents a 19.37 percent increase compared to the Rs 494.1 million net profit recorded during the same period last fiscal year. The growth has been largely driven by higher net interest income and a decline in impairment charges.
During the review period, the bank’s net interest income rose by 9.26 percent to Rs 1.81 billion, while net fee and commission income increased by 9.60 percent to Rs 246.8 million. Overall operating income grew by 8.44 percent, and operating profit surged by 18.34 percent.
The bank also reduced its provisioning for potential loan losses, setting aside Rs 286.2 million in the current period compared to Rs 317.2 million in the same period last year.
Out of the total net profit of Rs 588.7 million earned in the first nine months, the bank has Rs 384.3 million in distributable profit. Including retained earnings carried forward after last year’s dividend distribution, total distributable profit stands at Rs 417.6 million, indicating the bank has the capacity to distribute up to 14.15 percent dividend.
However, non-performing loans slightly increased from 4.27 percent to 4.4 percent during the period.
Earnings per share also improved, rising by Rs 1.59 to reach Rs 20.32. Including Rs 350 million worth of 9 percent non-redeemable non-cumulative preference shares, the bank’s paid-up capital stands at Rs 4.21 billion.
In terms of balance sheet growth, total deposits increased by Rs 2.11 billion to reach Rs 64.95 billion, while loans and advances expanded by Rs 3.46 billion to Rs 53.53 billion over the nine months.
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