Face to Face: Prime Commercial Bank Vs Laxmi Bank

November 14, 2019 | Investopaper

Here, we look into the financial performance of two commercial banks of Nepal- Laxmi Bank and Prime Commercial Bank. Both the banks have already published the first-quarter report of the fiscal year 2076/77. Based on the unaudited report, we will try to make a financial comparison of these two banks.

Paid-Up Capital & Reserve

Prime Commercial Bank has higher paid-up capital and reserve & surplus than Laxmi Bank. Prime’s capital stands at Rs. 9.69 Arba while Laxmi Bank has a capital of Rs. 8.92 Arba. Likewise, Prime Bank has reserve and surplus of Rs. 5.14 Arba against Laxmi Bank’s Rs. 4.10 Arba.

Deposits & Loans

Laxmi Bank leads in deposit collection from customers with Rs. 82.21 Arba. Prime Bank has collected a deposit of Rs. 78.59 Arba until the first quarter. On the other hand, Prime Commercial Bank has floated loans of Rs. 79.14 Arba which is slightly higher than Laxmi Bank’s 78.20 Arba.

Net Interest Income, Net Profit & Distributable Profit

Prime Bank overtakes Laxmi in terms of net interest income, net profit, and distributable profit. In the first quarter of this fiscal year, Prime Bank has earned a net interest income of Rs. 1.06 Arba and translated into net profit and distributable profit of Rs. 65.98 crores and Rs. 22.88 crores. Likewise, Laxmi Bank’s net interest income, net profit, and distributable profit stand at Rs. 86.60 crores, Rs. 40.19 crores and Rs. 19.91 crores respectively.

Non-Performing Loans (NPL) & Base Rate

Laxmi Bank has a lower NPL of 1.04 percent while Prime Commercial Bank has a lower base rate of 9.67 percent.

Earnings Per Share (EPS) and Net worth per Share

Prime Commercial Bank leads in Earnings Per Share and Net worth per share with Rs. 27.24 and Rs. 153.08 respectively.

The financial comparison of Prime Commercial Bank and Laxmi Bank is also summarized in the table below:

Financial Comparision: Prime Commercial Bank Vs Laxmi Bank

HEADINGS Prime Bank Laxmi Bank
PAID-UP CAPITAL (Rs. In Arba) 9.69 8.92
RESERVE & SURPLUS (Rs. In Arba) 5.14 4.1
DEPOSITS (Rs. In Arba) 78.59 82.21
LOANS  (Rs. In Arba) 79.14 78.2
NET INTEREST INCOME (Rs. In Arba) 1.06 0.866
PROFIT (Rs. In crores) 65.98 40.19
DISTRIBUTABLE PROFIT (Rs. In crores) 22.88 19.91
BASE RATE(%) 9.67 10.24
EARNINGS PER SHARE, EPS (Rs.) 27.24 18.02
NETWORTH PER SHARE (Rs.) 153.08 145.94
MARKET PRICE PER SHARE (Rs.) [Ashwin 30, 2076] 262 215
P/E RATIO 9.62 11.93


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