Machhapuchchhre Bank Limited (MBL) has reported a net profit of Rs. 41.79 crore in the first quarter of FY 2082/83, reflecting a 16.95% decline compared to Rs. 50.32 crore earned in the same period of the previous fiscal year. The decline in profitability was mainly due to a sharp rise in impairment charges and a significant drop in operating profit.
The bank’s net interest income stood at Rs. 145.89 crore, slightly lower by 1.60% from Rs. 148.27 crore last year. Operating profit declined by 40.15% to Rs. 59.84 crore, while impairment charges surged to Rs. 46.08 crore compared to a reversal of Rs. 4.34 crore in the same quarter of FY 2081/82. Personnel expenses increased moderately by 3.20% to Rs. 70.31 crore.
Deposits reached Rs. 1.93 kharba, up by 5.08%, while loans and advances grew by 5.10% to Rs. 1.48 kharba. The bank’s reserves increased by 5.78% to Rs. 6.68 arba. However, retained earnings turned negative at Rs. -11.42 crore compared to Rs. 93.63 crore in the previous year. As a result, distributable profit after regulatory adjustments stood at a loss of Rs. 11.42 crore.
The capital adequacy ratio decreased to 8.73% from 9.38%, while the cost of funds improved significantly, dropping by 26.33% to 4.03%. Earnings per share (EPS) stood at Rs. 13.83, down from Rs. 17.32, and net worth per share decreased to Rs. 154.61. The bank’s shares were priced at Rs. 209.40 at the end of the quarter, with a price-to-earnings (P/E) ratio of 15.14 times.
Key Financial Indicators:
| Particulars | Q1 2082/83 | Q1 2081/82 | Change (%) |
|---|---|---|---|
| Paid-up Capital | Rs. 12.09 Arba | Rs. 11.62 Arba | 4.00 |
| Reserves | Rs. 6.68 Arba | Rs. 6.32 Arba | 5.78 |
| Retained Earnings | Rs. -11.42 Crore | Rs. 93.63 Crore | Negative Turn |
| Deposits | Rs. 1.93 Kharba | Rs. 1.84 Kharba | 5.08 |
| Loans & Advances | Rs. 1.48 Kharba | Rs. 1.41 Kharba | 5.10 |
| Net Interest Income | Rs. 145.89 Crore | Rs. 148.27 Crore | -1.60 |
| Operating Profit | Rs. 59.84 Crore | Rs. 99.98 Crore | -40.15 |
| Net Profit | Rs. 41.79 Crore | Rs. 50.32 Crore | -16.95 |
| Personnel Expenses | Rs. 70.31 Crore | Rs. 68.13 Crore | 3.20 |
| Impairment Charges | Rs. 46.08 Crore | Rs. -4.34 Crore | Significant Rise |
| Capital Adequacy Ratio (CAR) | 8.73% | 9.38% | -6.93 |
| Cost of Funds | 4.03% | 5.47% | -26.33 |
| EPS (Annualized) | Rs. 13.83 | Rs. 17.32 | -20.14 |
| Net Worth per Share | Rs. 154.61 | Rs. 162.70 | -4.97 |
| P/E Ratio | 15.14x | — | — |
| Market Price (Qtr End) | Rs. 209.40 | — | — |
Machhapuchchhre Bank’s overall performance in Q1 FY 2082/83 was impacted by higher provisioning and reduced income, resulting in weaker profitability. Despite stable growth in deposits and loans, the bank’s capital adequacy and earnings ratios declined, leading to negative distributable profit for the quarter.