KATHMANDU: The ninth annual general meeting (AGM) of Laxmi Bank Ltd has approved an increase in authorized capital to Rs 2 billion and increase in issued and paid-up capital to Rs 1.613 billion with five per cent bonus shares on the capital after the recently concluded rights share issue.

The AGM discussed the directors' report and approved the financial statements for the year 2008-09. According to the bank, it achieved sound growth during the year and was successful in increasing its profitability. Net profit for the year stood at Rs 188.99 million, a 57.46 per cent growth over the preceding fiscal year. Furthermore, the bank's deposit, lending and investment volumes grew by 47.03 per cent, 37.46 per cent and 92.89 per cent, respectively.

The AGM approved revisions in the MOA to incorporate the above changes along with provisions for further public issue, investment in merchant banking and micro credit subsidiary.

The AGM has appointed Shashi Satyal & Co as the statutory auditor for the financial year 2009-10. The bank has reported earnings Rs 137.5 million in the first quarter of this financial year, an increase of 67 per cent compared to same period the previous fiscal year. It has 0.14 per cent non-performing loans (NPA).

As on January 8, 2009 the bank had deposit Rs 16,590 million, loan and advances Rs 15,205 million, investment Rs 3,191 million and operating profit Rs 277 million. Laxmi Bank has 21 branches -- eight within Kathmandu Valley. The 21st branch at Sukedhara, Kathmandu, iswill open soon.