Sanima Bank Reports Over 30% Growth in Profit and Dividend Capacity for FY 2082/83

Kathmandu. Sanima Bank Limited's financial statement for the fourth quarter of the fiscal year 2082/83 has been published. The bank has published its statement by improving both its net profit and dividend capacity by more than 30 percent during this period.

The bank has earned a net profit of 3 billion 55 crore rupees by the end of Ashadh. This profit is about 38 percent more than in the same period of the previous fiscal year. In the fiscal year 2082/83, the bank had earned a net profit of 2 billion 57 crore rupees.

The reasons for earning such profit include a mixed situation of net interest income, non-interest income, and improvement in non-performing loans.

The bank's net interest income has increased from 6 billion 36 crore rupees in the previous fiscal year to 6 billion 99 crore rupees.

During the review period, the bank earned 1 billion 32 crore rupees from net fees and commissions. Which was 1 billion 19 crore rupees in the previous year. Even though the profit has shown a significant improvement compared to the previous year, with only 1 billion 7 crore rupees set aside for impairment charge this year compared to 1 billion 88 crore rupees set aside last year.

During the review period, the bank's distributable profit has also improved significantly. After regulatory adjustments, the bank's distributable profit stood at 2 billion 83 crore rupees as of the end of Ashadh. In the previous fiscal year, such profit was only 2 billion 10 crore rupees.

The bank currently has a paid-up capital of 13 billion 58 crore rupees. By this calculation, the bank's distributable profit per share stands at 20 rupees 85 paisa, and this capacity may further increase as interest collected until Shrawan 15 will be calculated in this unadjusted statement.

Currently, the bank has issued 2 billion rupees worth of non-redeemable cumulative preference shares at an interest rate of 8.25 percent. With this, the bank's total paid-up capital is 15 billion 58 crore 15 lakh rupees.

The bank's total deposits have increased from 223 billion rupees to 249 billion rupees. Similarly, the loans disbursed to customers have increased from 176 billion rupees to 195 billion rupees. The bank's total asset size has reached 291 billion rupees.

During the review period, the bank's non-performing loans have decreased to 2.87 percent. Last year, it was 3.01 percent. The bank's earnings per share is 25 rupees 15 paisa, and the base rate has decreased from 8.12 percent to 6.12 percent.