Kathmandu. The financial condition of Sindhu Bikas Bank has deteriorated in the first six months of the current fiscal year. According to the details published by the bank, the bank has a loss of Rs 1,54,68,000.

The bank had posted a net profit of Rs 4.87 crore in the same quarter last year. During this period, the bank’s profit has declined significantly. During this period, the net interest income of the bank has increased modestly. Similarly, the operating profit of the bank is also negative.

The bank’s profit has increased due to negative profit and increase in impairment charges. In the first six months of the current FY, the bank’s net interest income has increased from Rs 5.66 crore to Rs 5.88 crore.

The bank’s operating profit stood at Rs 6,95,77,000 in the same period last year. In the same period of the current fiscal year, it has incurred a loss of Rs 1.55 crore.

The bank’s impairment charge has been revised to Rs 8,62,31,000 as of mid-January last year. In the same period of the current fiscal year, it was Rs 17.88 lakh. The distributable profit of the bank is negative at Rs 22.85 crore.

As of mid-January, the bank’s earnings per share stood at negative Rs 5.50 and net worth per share stood at Rs 94.19. The bank with a paid-up capital of Rs 55.74 crore has negative reserve fund of Rs 1,96,18,000.

The bank collected deposit of Rs 5.66 billion and extended loan of Rs 3.25 billion. According to the bank, the overall banking business has been affected due to the challenges caused by the economic and political uncertainty caused by the impact of the Genji agitation on September 23 and 24, as well as the decline in demand for credit due to the slowdown in the country’s economy.

According to the bank, the margin rate has been affected due to the intense competition in loan flow due to low capital cost of large banks and financial institutions, long-term impact on the country’s economy due to lack of investment in the productive sector and priority sectors, operating risks including the lack of skilled and competitive employees, increase in the cost of operation and risk mitigation, increasing competition in the banking sector, etc.