Shangrila Development Bank reports stable profit despite decent business growth, NPL declines

February 11, 2020 | Investopaper

Shangrila Development Bank has published the unaudited second-quarter report of the current fiscal year i.e. 2076/77. The bank has delivered a decent growth in the core business. However, the profit has remained stable at Rs. 19 crores in the first six months despite the increment in net interest income by 15 percent. This is mainly due to the rise in expenses from the expansion of the bank’s networks and services.

Shangrila Development Bank earned Rs. 54.59 crores as the net interest income, up from Rs. 47.49 crores in the corresponding quarter of the previous year. However, profit has slightly increased to Rs. 19.14 crores. In the first six months period, the distributable profit stands at Rs. 13.15 crores.

However, the major improvement is seen in the core banking business. The bank has collected Rs. 23.53 Arba as deposits from the customers. This is a growth of 21 percent in a 6 months period. (This deposit doesn’t include the transactions with other BFIs. Hence, the total deposit will be higher.)

Likewise, Shangrila Development Bank has floated Rs. 21.27 Arba as loans to the customers, up from Rs. 19.01 crores six months ago. (Note: This doesn’t include the loans provided to other BFIs)

The development bank has a current paid-up capital of Rs. 260.66 crores with total reserve and surplus of Rs. 68.21 crores.

Another good thing to look into the performance of the Shangrila Development Bank is the reduction of Non-Performing Loans (NPL). The bank has been able to limit the NPL to 0.68 percent, down from 1.45 percent in the same period last year.

Similarly, the base rate has slightly declined to 11.30 percent.

Looking into the per share ratios, Shangrila Development Bank has an Earnings Per Share (EPS) of Rs. 14.68 and per share net-worth of Rs. 126.17.

The second-quarter report is also summarized in the table below:

Shangrila Development Bank Second Quarter Financial Highlights, FY 2076/77

HEADINGS 2nd QTR, 2076/77 4th QTR, 2075/76 PERCENT CHANGE
PAID-UP CAPITAL (Rs. In crores) 260.66 260.66 0.00
RESERVE & SURPLUS(Rs. In crores) 68.21 72.85 -6.37
DEPOSITS From Customers (Rs. In Arba) 23.53 19.42 21.16
LOANS To Customers (Rs. In Arba) 21.27 19.01 11.89


HEADINGS 2nd QTR, 2076/77 2nd QTR, 2075/76 PERCENT CHANGE
NET INTEREST INCOME (Rs. In crores) 54.59 47.49 14.95
PROFIT (Rs. In crores) 19.14 19.11 0.16
DISTRIBUTABLE PROFIT (Rs. In crores) 13.15
NON PERFORMING LOANS, NPL (%) 0.68 1.24 -45.16
BASE RATE(%) 11.3 11.6 -2.59
MARKET PRICE PER SHARE (Rs.) [Poush end, 2076] 144
P/E RATIO 9.81


The above figures are based on the unaudited second-quarter report published by the respective company. Investors are advised to take other things into consideration along with this report while making investment decisions. The numbers may vary after the final audit.

Note: The share price, as well as the P/E ratio, is based on the data of Poush end, 2076. At current, the numbers may vary. 


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