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Thanks once again Rajesh & Dilbert sir for ur illustrations.

Net Write back = Provision for possible Loss (PPL), - Write Back of provision for possible Loss (WBPPL).

Company PPL WBPPL Net Write Back
EBL 98807000 - 88000 = 98719000
BOK 112274000 - 117422000 = - 15148000
NIB 836015000 - 930004000 = - 93989000.

The WBPPL of EBL is much smaller than their Provision for possible loss (PPL). It says that EBL was recovering its loan in the past regularly, where as BOK and NIB did good job this year in bad loan recovery. Therefore, their provision for possible loan loss is less than what they recovered. However, this factor alone may not tell us about the financial health of any company. We should interpret data in relation with other key indicators.

Hopefully it will help. If I am wrong, please friends, correct me.

Sharma ji, what he means is that there are some "net write back" with negative values. If you use sharesansar.com's financial statement page and try looking up 4th QTR 2069-070 of commercial banks net write back, you can see negative value of 6 commercial banks.

http://www.sharesansar.com/financialStatement.php

Neophyte ji,

There is no provision like "Negative net write back" in the balance sheet. The amount you are referring to could be "Provisioning for possible loss".

Thanx.

Again, Rajesh Sir, what does the "negative net write back" figure means as in the case of Kist bank?

it's just opposite of write off is write back

Let's assume Kist had made provision for possible loss in FY 2068/69. The amount was 2 million. This was provisioned for bad loan (or Bhaka Nagheko rin). But, Kist recovered Rs. 1.6 million in 2069/70 from the borrowers of this bad loan. This 1.6 million is posted as "net write back" in the balance sheet. This will make Kist financially healthy and the percentage of divided for FY 2069/70 could be higher.

I come across the term "Net Write Back" while going thru an analysis of commercial banks. But could not undertstood much about it. For example, in the 4th quarter study of comm. banks there is RBB of Rs. 362,841,000 and KIST of Rs. (703,913,000).

Hoping to get clear on this tool. Please share ur views.