Mahalaxmi Bikas Bank reports strong financial growth in FY 2081/82
According to the report, the bank’s net profit reached Rs 500.3 million, while its earnings per share rose notably, with the dividend distribution capacity increasing to 11.51 percent.
KATHMANDU: Mahalaxmi Bikas Bank has posted significant improvement in its overall financial indicators, publishing its unaudited financial statement for the fourth quarter of the fiscal year 2081/82.
According to the report, the bank’s net profit reached Rs 500.3 million, while its earnings per share rose notably, with the dividend distribution capacity increasing to 11.51 percent.
By the end of the fiscal year, the bank had successfully collected Rs 56.22 billion in deposits and mobilized Rs 45.85 billion in loans, marking a 5.05 percent growth in credit mobilization compared to the previous fiscal year.
The bank recorded a Return on Equity (ROE) of 11.79 percent, while the Credit-to-Deposit Ratio (CD Ratio) stood at 83.98 percent.
Its Non-Performing Loan (NPL) ratio was just 4.86 percent, well within Nepal Rastra Bank’s regulatory threshold.
The bank also maintained a sound Capital Adequacy Ratio, ensuring no immediate capital pressure for future business expansion.
Furthermore, the cost of funds decreased to 4.56 percent by the end of Ashad 2082, down by 2.47 percentage points from the previous year.
This decline positively impacted the bank’s base rate, which stood at 6.54 percent as of Shrawan 2082.
A lower base rate translates into reduced lending rates, directly benefiting borrowers.
