What is the Financial condition of NCC Bank and Kumari Bank, which are in the merger process?
Nepal Credit and Commerce (NCC) Bank and Kumari Bank Limited, which are merging, have made unrefined financial results for the first quarter of the current fiscal year financial results have been made public.
Figures suggest that, compared to the same time in the past fiscal year, Kumari Bank’s profit climbed significantly while NCC Bank’s marginally fell.
Kumari Bank’s (KBL) earnings climbed by 85.07 per cent during the time under consideration. As a result, the bank’s operational profit climbed by 86.01 per cent, operating income by 27.52 per cent, net interest income by 53.25 per cent, net fee and commission income by 9.44 per cent, and total operating income by 27.52 per cent.
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Likewise, throughout the review period, NCC Bank’s (NCCB) net profit fell by 0.24 per cent. In addition, the bank’s operating profit fell by 0.26 per cent due to the rise in impairment charges, despite the bank’s net interest income rising by 20.31 per cent and overall operating income rising by 13.71 per cent. The bank’s net profit has been under some strain as a consequence.
Despite a decline in profit, NCC Bank has a higher distributable profit than Kumari Bank. By the end of Ashoj, Kumari bank had a profit of 260 crores 46 lakh rupees compared to NCC’s 1 Arab 78 lakh rupees.
While Kumari’s earnings per share climbed by Rs 11.63 paisa to Rs 27.23 paisa during the review period, NCC’s earnings per share fell by Rs 1.53 paisa to Rs 18.56 paisa.
While deposits fell by 5.61 per cent and loans rose by 6.19 per cent in the first three months of the current fiscal year, NCC’s reserve fund surged by 9.40 per cent. Similarly, throughout the review period, Kumari’s loan climbed by 2.14 per cent and reserve fund by 15.44 per cent, while deposits fell by 1.58 per cent.
