Profitability Comparison of 11 national level development banks (Part 2)
August 18, 2019 | Investopaper
We have already covered the Comparison of 11 national level development bank (Part 1) based on paid-up capital, reserve, deposits and loans. In this part we will make profitability comparison of the development banks on the basis of following 4 financial indicators.
- Net Interest Income
- Net Profit
- Distributable Profit
- Dividend Paying Capacity (%)
This part will analyze the profitability of these development banks.
Note:
- The ranking will be based on the un-audited fourth quarter report of the fiscal year 2075/76. The audited report may vary.
- The reports based on NFRS is taken as the source for the data.
- The distributable profit of Mahalaxmi, Shangrila and Kamana Sewa Bikas Bank is not provided in their respective quarterly reports. So, we have made our assumptions which may vary with the company’s audited reports.
- The dividend paying capacity doesn’t include the remaining distributable reserve from the previous fiscal years. It is based on the this years’ profit only.
See the rankings in the table below and make the profitability comparison of the development banks. In you view, which development banks are more profitable than their competitors?
National Level Development Banks Net Interest Income (RANKING)
RANK | DEVELOPMENT BANKS | NET INTEREST INCOME (Rs. In crores) |
1 | Muktinath | 191.89 |
2 | Mahalaxmi | 154.5 |
3 | Garima | 140.53 |
4 | Kailash | 140.36 |
5 | Gandaki | 131.78 |
6 | Jyoti | 129.51 |
7 | Om | 122.52 |
8 | Lumbini Bikas | 113.38 |
9 | Shangrila | 109.39 |
10 | Deva | 92.87 |
11 | Kamana Sewa | 88.77 |
National Level Development Banks Net Profit (RANKING)
RANK | DEVELOPMENT BANKS | NET PROFIT (Rs. In crores) |
1 | Muktinath | 85.32 |
2 | Mahalaxmi | 80.76 |
3 | Gandaki | 60.38 |
4 | Kailash | 60.06 |
5 | Om | 59.95 |
6 | Garima | 59.23 |
7 | Lumbini Bikas | 55.74 |
8 | Jyoti | 50.82 |
9 | Deva | 38.92 |
10 | Shangrila | 35.27 |
11 | Kamana Sewa | 32.54 |
National Level Development Banks Distributable Profit (RANKING)
RANK | DEVELOPMENT BANKS | DISTRIBUTABLE PROFIT (Rs. In crores) |
1 | Muktinath | 58.7 |
2 | Mahalaxmi *** | 56.53 |
3 | Gandaki | 47.63 |
4 | Kailash | 46 |
5 | Om | 45.75 |
6 | Garima | 45.31 |
7 | Jyoti | 41.85 |
8 | Deva | 37.38 |
9 | Lumbini Bikas | 28.51 |
10 | Shangrila *** | 24.69 |
11 | Kamana Sewa *** | 22.78 |
***Distributable profit is not shown in the report. So, we have assumed 70 percent of the net profit as the distributable profit for the ease in comparison.
National Level Development Banks Dividend Paying Capacity (RANKING)
RANK | DEVELOPMENT BANKS | DIVIDEND PAYING CAPACITY (%) |
1 | Mahalaxmi *** | 19.87 |
2 | Muktinath | 19.15 |
3 | Kailash | 18.25 |
4 | Om | 18.19 |
5 | Gandaki | 17.32 |
6 | Garima | 16.25 |
7 | Jyoti | 13.50 |
8 | Lumbini Bikas | 12.90 |
9 | Deva | 11.77 |
10 | Shangrila *** | 9.47 |
11 | Kamana Sewa *** | 8.97 |
***Based on the assumption of distributable profit.