Nepal-SBI bank’s profit rises by 24.83 per cent

Himalayan News Service

Kathmandu, April 1:

Nepal-SBI Bank Ltd held its eleventh annual general meeting on March 30 under the chairmanship of Bala Krishna Shrestha, who is the chairman of the Board of Directors.

According to the bank’s annual report, the bank registered a net profit of Rs 60.8 million in the financial year 2003-04, thereby recording a growth of 24.83 per cent compared to last year.

At the meeting, Shrestha mentioned that the bank had been able to register an operating profit of Rs 191.9 million in the year 2003-04 compared to Rs 118.7 million in the last year. Shrestha said that it was an impressive growth of 61.68 per cent for this year. The bank’s report stated that it had been able to increase its operating profit despite an overall reduction in interest rate on advances by mobilising fresh business, laying emphasis on recovery of interest and increasing other incomes.

The loan portfolio of the bank also increased to Rs 5531.8 million at the end of the same financial year, which was only Rs 4795.8 million in the previous year, says the annual report.

Bank’s exposure in the priority and deprived sectors of the economy has been in line with the benchmark laid down by the Nepal Rastra Bank (NRB). The level of investments increased substantially by 58 per cent from Rs 1,207.3 million to 1,907.5 million in 2003-04.

The bank has stated that due to security reasons, bank’s branches in Rampur and Shishuwa have been shifted to Shreepur and Pokhara, respectively with the approval of the central bank. A new branch is scheduled to be opened at Butwal followed by a branch in Kathmandu, said the annual report. Nepal-SBI is also focusing on retail banking and increasing its investment. The bank’s non-performing assets have come down to 6.25 per cent at the end of the financial year 2003-04 from an earlier nine per cent last year.

The bank has already entered into an agency arrangement with five exchange companies in Qatar, Dubai, Oman, Baharain and Saudia Arabia in the past year for mobilising foreign inward remittances and also is in the process of tying up with other international money transfer agents in Nepal.