Kathmandu. Shangri-La Development Bank Limited has published its financial statements for the first quarter of the current fiscal year 2083/84.

The bank’s net profit declined in the first quarter of the current fiscal year. According to the bank’s net profit for the end of the current fiscal year, the bank’s net profit declined by 62.07 percent to Rs 3.34 crore. The bank had earned a net profit of Rs 8.82 crore in the same period of the last fiscal year 2082/83.

The bank’s profit has decreased due to the decrease in the bank’s net interest income and other operating income. Similarly, the bank’s profit has also been affected due to the high impairment charge of the bank.

In the first quarter of the current financial year, the bank’s impairment charge decreased by 6.11 percent to Rs 21.56 crore. In the same period of the previous financial year, such arrangements were Rs 22.96 crore.

The bank’s operating profit fell by 57.62 per cent to Rs 5.31 crore due to a decline in total operating income. The bank’s operating profit was Rs 12.53 crore in the previous year.

In the first quarter of the current financial year, the bank’s net interest income, which is the main basis of income, has declined by 7.15 percent. The net interest income has come down to Rs 50.98 crore from Rs 54.91 crore in the first quarter of the last financial year.

During the period, the bank’s interest income declined from Rs 1.21 billion to Rs 1,02.66 billion, while interest expense declined to Rs 51.67 crore from Rs 66.76 crore. On the non-interest income, net fee and commission income increased by 4.78 per cent to Rs 6,33,37,000 from Rs 6.34 crore in the same period last year.

The bank’s other operating income was Rs 92 crore compared to Rs 4.20 crore in the previous fiscal. It declined by 74 per cent to Rs 30.50 lakh.

In terms of business expansion, there has been a slight improvement in both deposits and loan flow of banks in the first three months. Customer deposits increased by 1.82 percent to Rs 57.95 billion from Rs 56.92 billion in the first three months of the current fiscal year as compared to the previous fiscal year. Customer credit flow also increased by 2.97 percent to Rs 47.09 billion from Rs 45.73 billion in the same period.

During this period, the total non-performing loans (NPL) of the bank increased from 6.86 percent in the first quarter of the last fiscal year to 7.64 percent in the same period of the current financial year. Due to the increase in bad loans, the coverage of loss management in total non-performing loans has come down to 68.73 percent from 76.21 percent in the previous year.

The bank’s annualized earnings per share (EPS) declined from 9.92 paise to 3.45 paise. The bank’s price-to-earnings ratio (PE) stood at 122.46 times while the final share price stood at Rs 422.50. Shangrila Development Bank, which currently has a paid-up capital of Rs 3.88 billion, has a net worth of Rs 154.71 per share.