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.

  1. Net Interest Income
  2. Net Profit
  3. Distributable Profit
  4. 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.

 

 

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