Market capitalization of 27 commercial banks of Nepal

  • INVESTOPAPER

Banking stocks account to 52.52 percent of the total market capitalization of the Nepalese stock market.

The market capitalization of a company refers to the total market value of the outstanding shares of that company. So, basically the market capitalization ( also known as market cap) of a company is obtained by multiplying the market price per share to the number of outstanding shares of that company. This calculation will help you to determine the size and the strength of the company in the market.

Market capitalization can be helpful to diversify your portfolio because it is essential to pick different sized companies to minimize the risk associated with your investment. One of the basic features of blue-chip stocks is large market capitalization. On the other hand, the company with small market capitalization can become the most valuable companies in your portfolio if they become successful. But they have a high risk compared to large-cap companies.

Market cap is also a useful metric to determine the changing position of a company in the stock market either it be large, medium or small companies. Likewise, it also reflects the overall market behavior and sentiment too. For instance, when the total market cap of a Nepalese stock market increases on a daily basis for a time period, it is understandable that the market is on an upward trend and vice versa.

In the context of Nepal, the banking sector is one of the most preferred sectors for investment in the stock market. One of the reasons behind it is definitely the size of the company. All 27 banks have now met the minimum paid-up requirement of 8 Arab. The table below shows the list of the 27 commercial banks along with the market capitalization.

MARKET CAPITALIZATION OF 27 COMMERCIAL BANKS  AS OF AUGUST 29, 2019 (RANKING WISE)

Rank BANKS NO. OF LISTED  SHARES MARKET PRICE (Rs.) MARKET CAP (In Arba)
1 Nabil Bank                   90,048,000.00 770 69.34
2 Nepal Investment Bank                 127,697,488.00 464 59.25
3 Everest Bank                   80,268,637.00 644 51.69
4 Standard Chartered Bank                   80,114,306.00 625 50.07
5 Himalayan Bank                   85,202,559.00 542 46.18
6 NIC Asia Bank                   88,342,287.00 439 38.78
7 Agricultural Development Bank                   90,155,288.00 426 38.41
8 Nepal SBI Bank                   84,492,504.00 445 37.60
9 NMB Bank                   96,181,624.00 382 36.74
10 Global IME Bank                 103,105,160.00 295 30.42
11 Siddhartha Bank                   88,876,045.00 314 27.91
12 Sanima Bank                   80,012,554.00 348 27.84
13 Nepal Bank                   80,359,548.00 323 25.96
14 Prime Commercial Bank                   93,186,264.00 275 25.63
15 Prabhu Bank                   88,926,640.00 262 23.30
16 Mega Bank                 105,945,355.00 200 21.19
17 Machhapuchhre Bank                   80,556,715.00 255 20.54
18 Bank of Kathmandu                   80,631,016.00 253 20.40
19 Laxmi Bank                   89,205,088.00 212 18.91
20 Sunrise Bank                   81,525,571.00 230 18.75
21 Citizens Bank                   83,704,853.00 217 18.16
22 Kumari Bank                   86,856,160.00 203 17.63
23 Janata Bank Nepal                   80,007,858.00 214 17.12
24 Nepal Bangladesh Bank                   80,921,476.00 211 17.07
25 NCC Bank                   70,185,873.00 201 14.11
26 Century Commercial Bank                   84,154,720.00 158 13.30
27 Civil Bank                   80,033,896.00 148 11.85

 

To know about the performance of the 27 commercial banks of Nepal in the fiscal year 2075/76, click the link below:

Financial Performance Analysis of Commercial Banks of Nepal [With Ranking]

 

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