Shine Resunga Development Bank profit climbs by hefty 51%
February 6, 2020 | Investopaper
Shine Resunga Development Bank has reported a massive surge in profit by 51 percent in the second quarter of the fiscal year 2076/77. After the successful acquisition of Purnima Bikas Bank and Bhargav Bikas Bank, Shine Resunga Development Bank has posted a net profit of Rs. 30.08 crores in the six months period. In the previous year, such profit stood at Rs. 19.90 crores.
As the net interest income inclined by 71 percent to Rs. 68.67 crores, the net profit also soared.
The bank’s deposits (from customers) and loans (to customers) expanded by 42 percent and 50 percent respectively during this period. With the completion of acquisition, the paid-up capital has increased by 61 percent to Rs. 2.62 Arba.
The NPL and base rate are at a decent 0.61 percent and 10.23 percent respectively.
Despite increase in capital by 61 percent, the Earnings Per Share (EPS) is at a satisfactory Rs. 22.94. Likewise, the per-share networth is Rs. 153.01.
See the summarized version of second quarter report of Shine Resunga Development Bank in the table below:
Shine Resunga Development Bank Second Quarter Report Summary, FY 2076/77
| HEADINGS | 2nd QTR, 2076/77 | 4th QTR, 2075/76 | Percent Change |
| PAID UP CAPITAL (Rs. In crores) | 262.29 | 162.27 | 61.64 |
| RESERVE & SURPLUS(Rs. In crores) | 140.88 | 77.30 | 82.25 |
| DEPOSITS From Customers(Rs. In Arba) | 26.78 | 18.85 | 42.07 |
| LOANS To Customers (Rs. In Arba) | 23.90 | 15.90 | 50.31 |
| HEADINGS | 2nd QTR, 2076/77 | 2nd QTR, 2075/76 | Percent Change |
| NET INTEREST INCOME (Rs. In crores) | 68.67 | 40.10 | 71.25 |
| PROFIT (Rs. In crores) | 30.08 | 19.90 | 51.16 |
| DISTRIBUTABLE PROFIT (Rs. In crores) | 25.37 | – | |
| NON PERFORMING LOANS, NPL (%) | 0.61 | 0.17 | 258.82 |
| BASE RATE(%) | 10.23 | 10.23 | 0.00 |
| EARNINGS PER SHARE, EPS (Rs.) | 22.94 | ||
| NETWORTH PER SHARE (Rs.) | 153.01 | ||
| MARKET PRICE PER SHARE (Rs.) [Poush end] | 256 | ||
| P/E RATIO | 11.16 |
Note:
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.
Where is costs of fund?
Cost of funds is incorporated in the base rate. The higher cost of the fund will lead to a higher base rate. The base rate represents the overall cost of banking.