Sindhu Bikas Bank (SINDU) has unveiled a net profit of Rs. 11.78 crores in the final quarter of Fiscal Year 2081/82, highlighting a remarkable growth of 287.60% in comparison to Rs. 3.04 crores accumulated in the same quarter from the previous fiscal year.
In spite of this extraordinary profit spike, the bank faced a downturn in core banking revenue. The net interest income dipped by 30.14%, landing at Rs. 13.37 crores, down from Rs. 19.14 crores a year prior. Additionally, deposits fell by 3.58% to Rs. 5.68 arba, while loans and advances slipped by 9.34%, totaling Rs. 3.25 arba.
The remarkable profit increase is mainly linked to a noteworthy reversal of impairment charges for loans and advances, recorded at a positive Rs. 17.90 crores in Q4 2081/82, as opposed to a charge of Rs. 1.08 crores the prior year. This resulted in an operating profit of Rs. 15.35 crores—surging over 417% from Rs. 2.96 crores.
Personnel costs saw a slight reduction of 2.81%, amounting to Rs. 9.88 crores, aiding in cost management. Annualized earnings per share (EPS) also soared to Rs. 21.15 from Rs. 5.46, while net worth per share increased by 36.54% to Rs. 86.70.
The bank’s capital adequacy ratio escalated significantly to 12.80%, up from 6.73%. Furthermore, asset quality improved with the Non-Performing Loan (NPL) ratio plunging to 1.09% from 2.76%. The cost of funds decreased to 5.41% from 6.52%.
At the end of Q4, the bank’s price-to-earnings (PE) ratio stood at 40.99 times, with a closing market price of Rs. 866.70.
