Top Blue Chip Commercial Banks - Best Buy by Rating Wise Analysis !

BLUE CHIP BANKS

Nepal Stock Exchange (NEPSE) has been continuously tanking points for quite some time. In such bearish trend, there are some analyst asserting it to be the prime time to invest in the secondary market, while some feel their cash safe at bank. Whatever the speculation, there are still some scrips who are in better position than the other.

Out of 28 listed commercial banks, scripts of 26 banks are tradable. The shares of Rastriya Banijya Bank (RBB) isn’t traded and the shares of Mega Bank is on hold since last one year because of the ongoing merger. Similarly even among the 26, only 6 banks’ prices are above Rs. 500. To list them down in descending order of market price per share (LTP on Chaitra 8, 2074) are Nabil Bank Limited (NABIL), Standard Chartered Bank Limited (SCB), Everest Bank Limited (EBL), Nepal Investment Bank Limited (NIB), Himalayan Bank Limited (HBL) and Nepal SBI Bank Limited (SBI).

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Commercial Banks Prospective Earning per Share (EPS) After Paid Up Capitalization !

COMMERCIAL BANKS

The current banking industry’s scenario is no different from a battlefield. While one side of the warriors is focused to retain their weapons (customers), the other side is trying to build a competitive advantage utilizing the opponent’s weakness (lower deposit rate). The general public has seen the current context of banking industry as a fight for survival. However, seeing things from different perspective, it actually resembles that all commercial banks will finally come to the same level given the similar range of paid up capital. The dominant market players in banking industry will be identified in the near future on the basis of net profit, deposit collection and loan portfolio.

The investors in secondary market are inquisitive on “which commercial banks will lead in the secondary market?” The precise answer to the stated question might not be pictured by all the investors instantly because nine of the commercial banks are yet to meet the paid up capital requirement. However, these nine commercial banks have already provided clues regarding their capital plan. Those banks that were sort of paid up capital have either used merger and acquisition approach or have utilized reserve fund to meet the paid up capital requirement. With the approaching deadline, banks are left with the alternatives of bonus share and right share to set the mark of Rs 8 arba in the first row of their balance sheets.

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Siddhartha Investment Growth Scheme-1 (SIGS1) Auction Shares and The Latest Auction Trend

With the expiry of the mutual fund dated 24th December 2017, Siddhartha Investment Growth Scheme-1 (SIGS1) has to clear all his stocks. Recently, they came up with an auction of 24 companies starting from 10th January 2018 to 16th January 2018.

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Siddhartha Investment Growth Scheme-1 (SIGS1) Auction Shares and The Latest Auction Trend

First Microfinance Again First to Publish First Quarterly Report of FY 2074/075; Earnings Surge by 60.44% to Rs. 24.13 Million !

First Microfinance Development Bank Ltd. (FMDBL) is again the first among the publishing companies to publish its provisional financial statement from the (Q1) of the fiscal year (FY) 2074/075, with an impressive profit growth of 60.44%.

According to the unaudited financial report for Q1 published yesterday, the microfinance has stated that its net profit surged to Rs. 24.13 million in Q1 as compared to Rs. 15 million in the corresponding Q1 of the last FY 2073/074.

The borrowing of the microfinance has increased from Rs 32.2 billion in the corresponding Q1 of the previous year to Rs. 35.2 billion in the Q1 of the current FY 2074/075.

Its net interest income has also increased to Rs. 40.8 million in the Q1 up from Rs. 26.5 million compared to the corresponding Q1 of the last fiscal year. The microfinance company has an operating profit of Rs. 37.9 million in Q1 of the ongoing FY.

The paid up capital of the company stands at Rs. 456.2 million in Q1 of FY 2074/075. Its reserve and surplus surges to Rs. 96 million in Q1 from Rs. 56.9 million in the corresponding Q1 of last FY.

Read more: First Microfinance Again First to Publish First Quarterly Report of FY 2074/075 !