Siddhartha Bank profit declines despite growth in business


Siddhartha Bank has reported a slight decline in net profit in the second quarter of the fiscal year 2076/77. The company has earned a profit of Rs. 1.03 Arba in the first 6 months which is a fall of almost 4% from the corresponding quarter of the previous year.

The decline in profit is mainly due to the huge increment in personnel and other operating expenses. The bank has spent Rs. 1.04 Arba in the personnel expenses which stood at Rs. 71.50 crores in the 6 months of the previous year. Likewise, the other operating expenses have grown from Rs. 31.86 crores to Rs. 44.33 crores.

The current capital of Siddhartha Bank is Rs. 9.79 Arba. Likewise, the total reserve is Rs. 4.96 crores which have declined by 17.74 percent due to the distribution of dividends.

Siddhartha Bank has collected the deposits of Rs. 126.55 Arba and floated the loans of Rs. 118.36 Arba until the second quarter.

The base rate and NPL of the bank have declined which is encouraging. Likewise, per-share earnings (EPS) and per share net worth stand at Rs. 21.57 and Rs. 150.72 respectively.

The second-quarter report of Siddhartha Bank is summarized in the table below:

Siddhartha Bank Second Quarter Report, FY 2076/77

HEADINGS 2nd QTR, 2076/77 4th QTR, 2075/76 PERCENT CHANGE
PAID-UP CAPITAL (Rs. In Arba) 9.79 8.89 10.12
RESERVE & SURPLUS (Rs. In Arba) 4.96 6.03 -17.74
DEPOSITS from the customer (Rs. In Arba) 126.55 114.92 10.12
LOANS  (Rs. In Arba) 118.36 104.88 12.85

HEADINGS 2nd QTR, 2076/77 2nd QTR, 2076/77 PERCENT CHANGE
NET INTEREST INCOME (Rs. In Arba) 2.77 2.29 20.96
PROFIT (Rs. In Arba) 1.03 1.07 -3.74
NON PERFORMING LOANS, NPL (%) 1.55 1.64 -5.49
BASE RATE(%) 10.04 10.59 -5.19
MARKET PRICE PER SHARE (Rs.) [Poush end, 2076] 316
P/E RATIO 14.65

Note: The above figures are based on the unaudited second-quarter report published by Siddhartha Bank. 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. 


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