Both the banks NBB and NCC have made exceptional turn around in the
past of couple of years. I have a feeling that the traders have always
been attracted towards the scripts of the banks for years and with the
turn around in the financial performance of the banks the investors have
also shown interest towards the scripts, however, with caution.
Lets look at the financials of the banks. NCC has already published its 4th quarter reports while NBB is yet to publish its reports so I have taken 3rd quarter reports of NBB.
Nepal Bangladesh Bank/Nepal Credit and Commerce
Paid up Capital(Rs.):.2,009,396,000/1,470,000,000
Reserve(Rs.):1,225,426,000/823,599,000
Provisioning(Rs.):167,290,000/182,127,000
Net Profit(Rs.):310,855,000/370,896,000
NPL(%):3.50/2.60
EPS(Rs.):20.63/25.23
P/E Ratio:15.76/8.84
NWPS(Rs.):162.48/156.03
NCC offered its shareholders 5% bonus shares from the profit of last fiscal year, however, the shareholders can expect returns in double digits this year. NCC Bank's paid up capital is still short of Rs.2 billion as directed by NRB to the commercial banks to raise their paid up capital by the end of Ashadh 2070. So, the chances of bonus share is high from NCC while NBB might opt for a mix of bonus share and cash dividend or just go for cash dividend. I think the financials of both are satisfactory if not the best considering the fact the problems of mismanagement and fraud in both the banks. The only problem is association of NB Group with the banks as the group has controlling stakes in the banks. However, I think that the group will out of the banks sooner or later.If you are planning to invest then I would advice you to invest but with caution there is chance of manipulation in the share price. Buy in small units, don't go for the bulk. Happy Investing!
SRC : Freak Money, Jamb Forum
Lets look at the financials of the banks. NCC has already published its 4th quarter reports while NBB is yet to publish its reports so I have taken 3rd quarter reports of NBB.
Nepal Bangladesh Bank/Nepal Credit and Commerce
Paid up Capital(Rs.):.2,009,396,000/1,470,000,000
Reserve(Rs.):1,225,426,000/823,599,000
Provisioning(Rs.):167,290,000/182,127,000
Net Profit(Rs.):310,855,000/370,896,000
NPL(%):3.50/2.60
EPS(Rs.):20.63/25.23
P/E Ratio:15.76/8.84
NWPS(Rs.):162.48/156.03
NCC offered its shareholders 5% bonus shares from the profit of last fiscal year, however, the shareholders can expect returns in double digits this year. NCC Bank's paid up capital is still short of Rs.2 billion as directed by NRB to the commercial banks to raise their paid up capital by the end of Ashadh 2070. So, the chances of bonus share is high from NCC while NBB might opt for a mix of bonus share and cash dividend or just go for cash dividend. I think the financials of both are satisfactory if not the best considering the fact the problems of mismanagement and fraud in both the banks. The only problem is association of NB Group with the banks as the group has controlling stakes in the banks. However, I think that the group will out of the banks sooner or later.If you are planning to invest then I would advice you to invest but with caution there is chance of manipulation in the share price. Buy in small units, don't go for the bulk. Happy Investing!
SRC : Freak Money, Jamb Forum
