Which development bank performed best in the Q4 of the FY 2073/74? In-depth analysis under one table
Development banks are considered as safe and low risk sector for investment as compared to commercial banks, microfinance and insurance companies. They have stable growth in their performance and stable dividend distribution record and comparatively trading at lower price.
In the fourth quarter of the FY 2073/74, average performance from most of the development banks signals low risk for the investment.
National level, NIDC Development Bank Limited (NIDC) and Muktinath Bikas Bank Limited (MNBBL) stood at the top with earning per share (EPS) of Rs. 51.46 and Rs 32.11, net worth per share of Rs 885.46 and 150.21 respectively.
Though spread in 1 to 3 district development bank, Excel Development Bank Limited (EDBL) with EPS of 39.70 and Miteri Development Bank Limited (MDB) with EPS of Rs. 31.86 shows the performance as of the national level bank.
Green Development Bank Limited (GRDBL) seems to be weakest among the development bank with low EPS of Rs 3.06 and net worth per share below Rs 100.
Below table shows the major fundamental indicators as well as working areas, as per the unaudited report published by development banks of the FY 2073/74:
- The data above are trace out from the Q4 report as published by the respective banks and EPS doesn’t reflect real EPS, i.e. ongoing right issue, right and bonus shares yet to be listed are not included in capital. Thus, investors must be cautious with these adjustments before making adjustments.
- Most of the development banks have gone into merger or acquisitions with other Bank and Financial Institutions. Following are the development banks that have merged or undergone into mergers and acquisitions:
- NIDC with Rastriya Banijya Bank Limited
- GDBL and FEWA
- TDBL and MEGA
- ALDBL and CCBL
- KDBL and KBL
- DBBL and SHBL and SAJHA
- WDBL and NBSL
- JBBL and RBBBL