November 18, 2020 | Investopaper
Muktinath Bikas Bank (MNBBL) and Garima Bikas Bank (GBBL) are the two leading national level development banks of Nepal. Here we will try to make the financial comparison between these two development banks. The comparison will be based on following indicators.
Note: The comparative study is based on the unaudited first quarterly report of the fiscal year 2077/78.
Paid up capital and Reserve and Surplus
Muktinath Bikas Bank has a higher capital of Rs 4.32 Arba while Garima Bikas Bank has a paid-up capital of Rs 3.24 Arba. Similalry, Muktinath excels in reserve and surplus with Rs 1.77 Arba. GBBL has a reserve of Rs 1.09 Arba.
Deposits And Loans & Advances
Muktinath is ahead of Garima in terms of both deposits and loans. Until the first quarter of the fiscal year 2077/78, Muktinath Bikas Bank has collected Rs 63.85 Arba as deposits from customers. Likewise, it has floated the loans and advances of Rs 51.99 Arba to the customers. On the other hand, Garima Bikas Bank has deposits and loans of Rs 48.62 Arba and Rs 38.77 Arba.
Net Interest Income, Operating Profit, Net Profit And Distributable Profit
In the first three months of the fiscal year 2077/78, MNBBL has earned Rs 59.09 crores as net interest income while such income of GBBL stood at Rs 37.22 crores. Similalry, Muktinath Bikas Bank greatly excels in operating profit, net profit and distributable profit with Rs 42.02 crores, Rs 29.42 crores and Rs 15.22 crores respectively. Garima Bikas Bank, on the other hand, has earned Rs 11.6 crores, Rs 8.12 crores Rs 42 lakhs as operating profit, net profit and distributable profit respectively.
Non Performing Loans And Base Rate
Muktinath Bikas Bank has lower non-performing loans (NPL) of 0.12 percent as compared to Garima Bikas Bank (0.71 percent). However, Garima has lower base rate of Rs 9.12 percent. The base rate of MNBBL stood at Rs 9.16 percent.
Earnings Per Share And Net-worth Per Share
Looking into the per-share ratios, Muktinath Bikas Bank has an annualized earnings per share (EPS) and net-worth per share of Rs 27.21 and Rs 140.83 percent. Likewise, Garima Bikas Bank has an annualized EPS of Rs 10.03 while the per share networth is Rs 133.72.
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The financial comparison is also summarized in the table below:
Face To Face: Muktinath Bikas Bank Vs Garima Bikas Bank
|Financial Indicators||Muktinath Bikas Bank||Garima Bikas Bank|
|Paid up capital(Rs.’Arba’)||4.32||3.24|
|Reserve and Surplus(Rs.’Arba’)||1.77||1.09|
|Deposits From Customers (Rs.’Arba’)||63.85||48.62|
|Loans & Advances To Customers (Rs.’Arba’)||51.99||38.77|
|Net Interest Income(Rs.’crores’)||59.06||37.22|
|Operating Profit (Rs.’crores’)||42.02||11.6|
|Net Profit (Rs.’crores’)||29.42||8.12|
|Distributable Profit (Rs.’crores’)||15.22||0.42|
|Non Performing Loans, NPL(%)||0.12||0.71|
|Earnings Per Share, EPS(Rs.)||27.21||10.03|
|Networth Per Share ( Rs.)||140.83||133.72|
|Market Price Per Share (Rs.) [Ashwin end, 2077]||354||265|
The above figures are based on the un-audited quarterly 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.
The share price, as well as the P/E ratio, is based on the data of Ashwin end, 2077. At current, the numbers may vary.