Kathmandu. Top Development banks that have made their unaudited financial statements for the first quarter of the fiscal year 2083/84 public, the total distributable profit of 4 has decreased compared to the same period of the previous fiscal year. The remaining 4 have increased. The total distributable profit of Shangri-La Development Bank is negative.

The total distributable profit of Shine Resunga Development Bank and Garima Development Bank has decreased by 92.04 percent and 86.83 percent, respectively. This is due to the impact on retained earnings after both banks distributed bonus shares and cash dividends. Shangri-La and Kamana Sewa Development Bank have also distributed dividends.

The total distributable profit of the 8 development banks has increased from Rs 369.65 crore in the first quarter of the previous year to Rs 370.39 crore in the current fiscal year. This is a growth of only 0.20 percent, that is, almost stable. However, since this figure contains a mix of positive and negative figures, it is more meaningful to look at the bank-specific situation.

Development Banks dividend capacity, reduced retained earnings
Shine Resunga Development Bank's total distributable profit has fallen from Rs 69.65 crore to Rs 5.54 crore, which is a decrease of 92.04%. The bank has reduced its retained earnings from Rs 81.40 crore to Rs 80.35 crore through bonus shares and cash dividends. The distributable profit for the current quarter has increased from Rs 1.60 crore to Rs 4.49 crore.

Garima Bikas Bank's total distributable profit has decreased from Rs 63.22 crore to Rs 8.33 crore, which is a decrease of 86.83%. The bank has distributed Rs 120.43 crore through bonus shares and cash dividends from its retained earnings of Rs 120.66 crore. This is almost five times the current quarter's net profit of Rs 24.01 crore. The distributable profit for the current quarter has increased from Rs 3.30 crore to Rs 8.09 crore.

Muktinath Bikas Bank's total distributable profit, excluding dividend, has decreased from Rs 122.49 crore to Rs 61.56 crore, a decrease of 49.74%. The main reason for this is the decline in the opening retained profit from Rs 135.41 crore to Rs 67.58 crore. The reason for this is not disclosed in the report. Although the net profit increased by 43.44 percent to Rs 32.24 crore, the current quarter's distributable profit is negative at Rs 6.02 crore due to the provision of Rs 21.55 crore for non-banking assets and Rs 6.25 crore for capital repayment. This is a smaller loss than the previous year's negative Rs 12.92 crore.

Shangri-La Development Bank's total distributable profit has decreased from Rs 35.15 crore to Rs 1.33 crore. The bank has distributed Rs 39.31 crore as bonus shares and cash dividend from the opening retained profit. Although the net profit is 3.35 crores, the distributable profit for the current quarter is negative 3.98 crores due to the reduction of 2.68 crores in the bond redemption reserve, 6.7 lakhs in the general reserve and 3.95 crores in the interest receivable.

Development Banks Distributable profit

The total distributable profit of Kamana Sewa Bikas Bank has increased from 135.22 crores to 160.04 crores, which is an increase of 18.36%. This increase has also occurred after distributing a cash dividend of 59.34 crores. Last year, the bank distributed 55.43 crores, including 35.11 crores bonus shares and 20.33 crores in cash dividend. There are no bonus shares this year. Cash dividend is about 97 percent of the initial 61.27 crores of accumulated profit (our calculation).

The bank's net profit has increased by 16.99 percent to 23.12 crores from 19.76 crores. Distributable profit for the current quarter has increased by 37.97 percent from Rs 10.20 crore to Rs 14.07 crore. About 63 percent of this increase came from the reduction in interest receivable from Rs 4.48 crore to Rs 2.03 crore. After the bank allocated Rs 78.75 lakh as dividend for preference shares, the distributable profit remains at Rs 152.17 crore. Annualized distributable profit per share has increased from Rs 14.01 to Rs 15.76.

Lumbini Bikas Bank's total distributable profit has increased from a negative of Rs 17.35 crore to a positive of Rs 66.52 crore. Distributable profit for the current quarter has also increased from a negative of Rs 47.05 crore to a positive of Rs 22.63 crore. The main reason for this is that the bank has returned to a net profit of Rs 32.71 crore from a net loss of Rs 34.86 crore. Distributable profit per share has increased from a negative of Rs 4.79 to a positive of Rs 37.09.

Jyoti Bikas Bank's total distributable profit has increased from a negative of Rs 77.85 crore to a positive of Rs 22.10 crore. During this period, the initial accumulated profit has also increased from a negative of Rs 78.05 crore to a positive of Rs 14.44 crore. The reason for this is not disclosed in the financial statements. The distributable profit of the current quarter has increased from Rs 1.9 million to Rs 7.66 crore, which is about 39.5 times more in our calculation.

Mahalaxmi Bikas Bank's total distributable profit has increased from Rs 39.12 crore to Rs 47.63 crore, which is an increase of 21.75%. The distributable profit of the current quarter has also increased from a negative of Rs 2.70 crore to a positive of Rs 1.11 crore. After allocating money to various reserve funds from the net profit of Rs 11.85 crore, the amount before regulatory adjustment has been limited to Rs 2.98 crore. Distributable profit per share has increased from Rs 7.22 to Rs 11.29. The bank has not distributed dividend in this quarter.