February 11, 2020 | Investopaper
Civil Bank is an ‘A’ class commercial bank with a capital of Rs. 8 Arba. On the other hand, Muktinath Bikas Bank is a ‘B’ class national level development bank. Generally, we see the commercial bank vastly surpassing the ‘B’ class financial institutions in terms of core business and profit. However, between the two, we find a neck to neck competition. Muktinath Bikas Bank has overtaken Civil Bank in some indicators while the later excels in others.
Here we will try to make a financial comparison between these two ‘A’ class and ‘B’ class banks. The comparison will be based on the following indicators as per the unaudited second-quarter report of the fiscal year 2076/77.
Paid-Up Capital & Reserve & Surplus
Being an ‘A’ class commercial bank, Civil Bank has a higher paid-up capital of Rs. 8 Arba. On the other hand, Muktinath Bikas Bank has a current capital of Rs. 4.33 Arba.
Likewise, Civil also exceed Muktinath in terms of reserve and surplus. Civil has a higher total reserve & surplus of Rs. 1.94 Arba while Muktinath has Rs. 1.23 Arba in reserve.
Deposits & Loans
Muktinath Bikas Bank has a higher deposit collection from customers of Rs. 48.24 Arba. On the other hand, the Civil Bank has Rs. 47.75 Arba as deposits from the customers.
Similarly, Civil Bank has floated slightly higher loans to customers of Rs. 47.76 Arba while such loans of Muktinath Bikas Bank stand at Rs. 45.20 Arba.
(Note: The deposits and loans to other BFIs is not included)
Net Interest Income & Net Profit
In the first six months, Civil Bank has earned Rs. 119.29 crores as net interest income, more than Muktinath’s Rs. 109.87 crores. However, Muktinath Bikas Bank excels in net profit with Rs. 47.25 crores in six months. Civil Bank’s net profit stood at Rs. 31.62 crores.
Similarly, Muktinath Bikas Bank has a higher distributable profit of Rs. 34.30 crores as compared to Civil Bank’s Rs. 13.12 crores.
NPL & Base Rate
Muktinath Bikas Bank vastly surpasses the Civil Bank in terms of NPL. Muktinath has a lower Non-Performing Loans (NPL) of 0.11 percent only, while Civil Bank has an NPL of 2.69 percent.
Civil Bank is operating with a slightly lower base rate of Rs. 10.98 percent. Muktinath Bikas Bank, on the other hand, has a base rate of 11.18 percent.
Earnings Per Share & Net worth Per Share
Looking into per-share indicators, Muktinath Bikas Bank is ahead in Earnings Per Share (EPS) as well as Net worth Per Share. Muktinath has an EPS of Rs. 22.13 while the EPS of Civil Bank is only Rs. 7.90.
Also, the per-share net worth of Muktinath Bikas Bank stands at Rs. 128.47. Civil Bank has net worth per share of Rs. 124.22.
The financial comparison is also summarized in the table below:
Face To Face: Muktinath Bikas Bank Vs Civil Bank
|HEADINGS||Civil bank||Muktinath Bikas Bank|
|PAID-UP CAPITAL (Rs. In Arba)||8||4.33|
|RESERVE & SURPLUS(Rs. In Arba)||1.94||1.23|
|DEPOSITS From Customers (Rs. In Arba)||47.75||48.24|
|LOANS To Customers (Rs. In Arba)||47.76||45.2|
|NET INTEREST INCOME (Rs. In crores)||119.29||109.87|
|PROFIT (Rs. In crores)||31.62||47.25|
|DISTRIBUTABLE PROFIT (Rs. In crores)||13.12||34.3|
|NON PERFORMING LOANS, NPL (%)||2.69||0.11|
|EARNINGS PER SHARE, EPS (Rs.)||7.9||22.13|
|NETWORTH PER SHARE (Rs.)||124.22||128.47|
|MARKET PRICE PER SHARE (Rs.) [Poush end, 2076]||140||308|
The above figures are based on the unaudited second-quarter report published by the respective company. Investors are advised to take other things into consideration along with this report while making investment decisions. The numbers may vary after the final audit.
Note: The share price, as well as the P/E ratio, is based on the data of Poush end, 2076. At current, the numbers may vary.