Sanima, Citizens or Prabhu Bank: Which is the best of all?
July 28, 2019 | Investopaper
Among the 28 commercial banks of Nepal, only 3 have published the fourth quarter report of the fiscal year 2075/76. They are:
Here, we will look into the comparative performance of these 3 banks. It is based on the unaudited fourth-quarter report of the fiscal year 2075/76.
The comparative performance is shown in the table below:
Comparative Performance: Sanima Bank Vs Citizens Bank Vs Prabhu Bank
| HEADINGS | Sanima Bank | Citizens Bank | Prabhu Bank |
| PAID-UP CAPITAL (Rs. In Arba) | 8 | 8.37 | 8.89 |
| RESERVE & SURPLUS (Rs. In Arba) | 3.9 | 4.09 | 5.67 |
| DEPOSITS (Rs. In Arba) | 89.37 | 70.51 | 112.39 |
| LOANS (Rs. In Arba) | 81.25 | 62.91 | 86.42 |
| NET INTEREST INCOME (Rs. In Arba) | 4.1 | 2.82 | 4.57 |
| PROFIT (Rs. In Arba) | 2.24 | 1.49 | 2.05 |
| DISTRIBUTABLE PROFIT (Rs. In Arba) | 1.63 | 1.12 | 1.73 |
| NON PERFORMING LOANS, NPL (%) | 0.08 | 1.19 | 2.31 |
| BASE RATE(%) | 9.45 | 10.52 | 9.36 |
| EARNINGS PER SHARE, EPS (Rs.) | 28.04 | 17.79 | 24.18 |
| NETWORTH PER SHARE (Rs.) | 148.73 | 139.57 | 163.8 |
| MARKET PRICE PER SHARE (Rs.) [Ashad 31, 2076] | 348 | 224 | 266 |
| P/E RATIO (based on the price of Ashad 31, 2076) | 12.41 | 12.59 | 11 |
Conclusion
Prabhu Bank leads in 8 financial indicators. Prabhu bank is ahead in paid-up capital, reserve & surplus, deposits, loans, net interest income, distributable profit, base rate, net worth per share and the p/e ratio. Likewise, Sanima Bank leads in 4 indicators. This includes net profit, non-performing loans (NPL), Earnings Per Share (EPS) and Market price per share (MPS). Citizens Bank is lagging behind among the three banks.
In your view, which bank is more financially sound and profitable? Among the three, which bank do you prefer? Feel free to share your views in the comment section.
I mark, Prabhu Bank because it’s gradually rising from minus to plus.
Three bank have neck to neck competition. Sanima Bank is best in present situation. Prabhu Bank also doing well, acquiring the financially weak bank. This bank may lead in future.
Pravu bank has greater future