number of commercial bank in nepal 2021

The huge cost of fund results in an increased spread rate. The Balance sheet analysis will give us an overview of the financial position of the companies in the sector. How to Use Candlestick Chart to Buy/Sell Stocks. Likewise, the D class microfinance companies are also undergoing merger/acquisition aggressively. By mid-April 2077 BS, 750 branches have been opened at local level. The table below shows the presence of commercial banks at the local level [ As of Mid-Jan 2022]. A merger and acquisition agreement has been signed to maintain the share swap ratio of 35 shares of Nabil Bank equating to 100 shares of United Finance.

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Net Profit of Commercial Banks in Nepal [With Ranking], List of Banks And Financial Institutions In Nepal. Instant access to full history data in excel. Some Ratios as per the NRB Directives; Ideally, the low cost of funds and high spread rate is favorable for the banks profitability. Nepal Commercial Banks: Total Asset or Liabilities data was reported at 5,824,142.639 NPR mn in May 2022. When viewed relatively the income and interest income generated on the total capital utilized NICA seems to be outperforming the overall banking sector. To view or add a comment, sign in. SCB in the same way has not been able to compete and expand the business and the appetite for its stocks in the market seems to be decreasing. Commercial banks have reached 750 out of 753 local levels formed after the countrys transition to federalism.

The table below presents the number of Deposit and Loan Accounts [As of Mid-Jan, 2022]: Related:E-Banking In Nepal: Every Thing You Need To Know. This can have company-specific both positive and negative aspects. That is why there are more bank accounts than the population. The government's plan to provide financial services and access to all local levels is nearing completion. The merger between them will lead to the formation of the biggest ever bank in Nepal with the paid of the capital of 26.14 Arba. Zero to extremely low slippage. The data reached an all-time high of 5,824,142.639 NPR mn in May 2022 and a record low of 263,767.600 NPR mn in Jul 2003. 80 Commonly Used Banking Acronyms and Their Full Form You Should Know. Your email address will not be published. In 2020, commercial bank branches for Nepal was 21.5 number per 100,000 adults. Changing regulatory landscapes could affect growth and economies of scale.

The B class development banks and C class finance companies are in danger of extinction. Bagmati State has the highest penetration in terms of the number of branches of BFIs. 5.2 Sectoral Ratio Analysis: The Lowest, Highest and the Average, SANIMA and NBB recorded excellent net profits and NBB growth. The cost of fund ranges between 3-6% and the spread rate ranges between 3-4%. Confirmation Bias & Its Impact On Decision Making: How to Overcome It? See the current data (Mid-Jan 2022) related to mobile banking, internet banking, and ATMs in the table below: You May Also Like:Technological Advancements in Banking Industry. Commercial bank branches of Nepal increased from 2.6 number per 100,000 adults in 2006 to 21.5 number per 100,000 adults in 2020 growing at an average annual rate of 17.19%.

However, it is important to note that these valuation ratios take net profit into accounts and doesnt take account of the types of earning and whether the earnings are recurring. 9) Focusing on growth, innovation, digitalization and competition. The number of banks and financial institutions is 140.

Causes for Concern in the Banking Sector, 9.1 Minimum Fundamental Criteria for Investing in Banking Stocks. Therefore, to analyze the banking stocks it is vital to analyze the key parameters: Loans and Deposits. The number of bank accounts is more than the total population of Nepal. Available via annual subscription to one or more of CEICs global and premium databases. Watch out for companies with good fundamentals, consistent core revenue, profits and ratios above peers and industry average for good returns. Likewise, 18.01 lakh borrowers have taken loan facilities from these BFIs. Nepal Investment Bank and Himalayan Bank Ltd have concluded their MOU for the merger. 10) Competitive Advantage: Low Cost of Fund, low cost of deposits, strong CASA proportion. Currently, the market gave a handsome return of over 120% in less than a year with no major correction meaning the significant correction is still overdue which could be time or price correction. CD ratio helps in assessing a bank's liquidity and indicates its health - if the ratio is too low, banks may not be earning as much as they could be. Explore resources provided by the Research Division at the Federal Reserve Bank of St. Louis. Live data and insights on Coronavirus around the world, including detailed statistics for the US, EU, and China confirmed and recovered cases, deaths, alternative data on economic activities, customer behavior, supply chains, and more. The once blue-chip companies have not been able to improve their performances recently and the same was observed from the recent quarters as these companies were outperformed by the peers which were way behind some time back. Therefore, it is important to analyze from various standpoints to find the best scripts. According to the Central Statistics Office, the total population of Nepal is almost 3 crores. Similarly, regular dividends can be expected from the banks. It is important to note that such earnings could be non-recurring. business, finance and economics. Altogether 27 commercial banks, 17 development banks, 17 finance companies, and 67 microfinance are currently operating (as of Mid-Jan 2022) in Nepal. 2021 CEIC Data, an ISI Emerging Markets Group Company. The various key financials and ratios have been presented, compared and analyzed. The stock market return from the majority of the banking stocks has underperformed the returns from other sectors leading to a decreased interest/confidence of investors in the sector. The banking sector is trading at 1778.71 as of 6th May 2021. A saturated market and cut-throat competition in the BFIs limiting the business growth. They are regulated by Nepal Rastra Bank and have to comply with all the regulations and requirements on Bank and Financial Institution Act, 2073 (2017). This number will be higher if the accounts opened in the MFI are also included. There are currently 262,325 branchless banking customers in Nepal.

Technical Analysis of BANKING (chart from Smart Wealth PRO), Sectoral Analysis of Commercial Banking Sector (As of March 08, 2021). EBL has not been able to expand the loans at the same pace as its closest peers. Suitable for enterprise usage. According to Nepal Rastra Bank, branches of the commercial bank are yet to be opened only in Ruby Valley Municipality of Dhading, Junichande Municipality of Jajarkot and Kanda Municipality of Bajhang. Payable monthly by credit card. Knoema, an Eldridge business, is the premier data platform and the most comprehensive source of global decision-making data in the world. Nabil Bank Limited to Acquire United Finance Limited. Therefore, the number of BFIs is expected to decline. The companies earnings were resulted from impairment reversals and other operating income respectively rather than the increase in the core revenue (net interest) as the companys core revenue has not increased significantly. Corporate crises/failures and Financial Reporting Standards in the Subsequent Period, Role of Capital Markets in Rapid Development of Country (award-winning article), To view or add a comment, sign in All rights reserved, Unlimited access tailored to your data needs, Nepal Commercial Banks: Total Asset or Liabilities. If the ratio is too high, it means that banks might not have enough liquidity to cover any unforeseen fund requirements, which may affect capital adequacy and asset-liability mismatch. Our revolutionary technology changes the way individuals and organizations discover, visualize, model, and present their data and the world's data to facilitate better decisions and better outcomes. Likewise, the regulatory body is pushing the banks into mergers.

As of Poushs end, 2078 BS (Mid-Jan, 2022), 4.118 crores deposit accounts have been opened in banks and financial institutions. Hope to learn more from you. They were placed on your computer when you launched this website. Following this, the minimum paid-up capital requirement is 8 Arba which has been compiled by all the commercial Banks. The central bank has stated that out of the total 753 local levels, 750 branches of (a) class commercial banks have been expanded at the local level. Explore the most complete set of 6.6 million time series covering more than 200 economies, 20 industries and 18 macroeconomic sectors. These factors are reflected in their stock price.

Explore resources provided by the Research Division at the Federal Reserve Bank of St. Louis, Federal Reserve Bank of St. Louis, GBIME has the highest paid-up capital with 21.63 Arba which is likely to change as the NIB and HBL have now started the process of merger to form a bank with a paid-up of 26.14 Arba; the biggest in number. Until Mid-Jan, 2022, Commercial Banks have the highest number of branches of 4,856 while development banks and finance have 1,065 and 248 branches respectively. 2003 - 2022 | Monthly | NPR mn | Nepal Rastra Bank. Traders are advised to strictly adhere to their risk profile while setting stop-losses. Related:Importance of Banking in Developing Countries like Nepal. In other words, banks give loans, earn interest (revenue). A, B, and C Class BFIs have opened in a total of 4,417 ATMs out of which commercial banks occupy 4,065 ATMs. 6) NPL below industry average; in decreasing trend. The Banking sector, along with other sectors in Nepal, mimics the NEPSE and no company escapes the fall in NEPSE's fall. Altogether 2,866 branches of BFIs are operating in Bagmati State. The central banks initiative to induce a big merger (merger of commercial banks) is likely to bring the number of financial institutions further down. Our website uses cookies to improve your online experience. Until the end of Poush, 2078 BS, the number of Banks and Financial Institutions has declined to 129. The total number of BFIs (A, B & C) stood at 61. There are 26 listed commercial banks in Nepal. From the investment perspective, while some banking stocks can yield promising returns, the sector could also be used to optimize and diversify the portfolio as the banking sectors are relatively low risks as evident from the majority of the stocks with weekly BETA below 1. 300-500. After the launch of a program called Bank Account for All Nepalis, the number of bank accounts has increased due to increased financial literacy. 7) Year on Year steady and consistent growth on Loans, Deposits, net interest income, reserve and net profit. Most of the data analyzed and presented below are extracted from Smart Wealth Pro. Out of which, 217 branches are of microfinance companies. The high reserve is the indication of a strong financial position and the company can withstand times of crisis as well as of the dividend stocks like NABIL the good reserve is the signal that the company could keep up the momentum in terms of its dividend distribution. The industry average loans to customers and deposits to customers based on Q3 in 1.25 Kharba and 1.38 Kharba respectively. With the introduction of the merger by-laws, the number of banks and financial institutions (BFIs) has gradually declined in Nepal. Altogether 1.62 crores customers are currently taking banking services through the use of mobile banking. An individual can also open an account in more than one bank and financial institution.

If the company are unable to generate returns in line with their capital, it could be viewed in a negative light by the investors. To find out more about the cookies we use, see our Cookies Policy. (Department of Information): 1223/075-76, Copyright 2021-2022 | Designed by Manish Thapa With Investopaper, Current Status of Banking in Nepal [Updated]. The article attempts to analyze the commercial banking sector listed in NEPSE primarily based on the 3rd Quarter reports. Out of this, commercial banks have the largest deposit accounts of 3.57 crores. 5) Good Dividend History & Distributable Profit per Share above the industry average. The table below shows the number of BFIs including the D class microfinance and their branches. Kathmandu. This is the number of accounts opened only in commercial banks, development banks, and finance companies. Accept deposits, pay interest (cost). There is no data available for your selected dates. Nepal Commercial Banks: Total Asset or Liabilities data remains active status in CEIC and is reported by Nepal Rastra Bank. It is highly advisable to perform due diligence and research for a safe and sound investment. Okay to continue The number of branches of banks and financial institutions across the country has reached 10,546. Related:Merger/Acquisition By Commercial Banks In Nepal. Required fields are marked *. As of Poushs end 2078 BS [Mid Jan 2022], a total of 98.55 lakh customers are users of debit cards while 2.15 lakh bank customers use credit cards. The majority of the banking stocks are trading between Rs.

The commercial banks with a CD ratio above 80% are: (ranked) NICA, MEGA, SANIMA, PCBL, KBL, BOKL, NMB, NABIL, MBL, CBL. One Federal Reserve Bank Plaza, The minimum criteria that could be set for picking the banking stock for the long run could be: 1) PE and PB lower than the industry average. NIC Asia Bank Posts Rs 4.52 Arba In Net Profit In FY 2078/79, 728 MW Electricity Added To National Grid In Last Fiscal Year, Kumari Bank To Sell 30 Lakh Units Of KBL Debenture 2089, Trade Tower Limited To Sell 11,58,960 Shares In IPO, Sagarmatha Jalbidhyut Company To Float 54,88,000 In IPO | Appoints CIT As Underwriter, Tax Rate In Nepal For Fiscal Year 2079/80 [FY 2022-23], Budget Of Rs.17.93 Kharba Presented For Fiscal Year 2079/80, Important Skills Required to Become a Successful Investor/Trader. 2022 All right Reversed.Banks Nepal Pvt Ltd, Big Merger, Banks are : Himalayan & Investment, NIC & NMB, Nepal Bangladesh & NCC, Sunrise & Siddhartha, Rastriya Banijya Bank has changed the All customer Account Number, Nepal Investment Bank and Himalayan Bank's Final preparations for Big Merger, Big Merger Himalayan and Nepal Investment Bank, Swap Ratio 1: 1, Digital ICT Media PVT LTD (A Women Group). Fig: Income Statement Items based on Q3 reports, 2077/78, GBIME, NICA and NABIL record the highest core revenue as well as highest net profits for the commercial banks. Based on PE and PB ratio, the most undervalued stocks are SANIMA, NBB and NBL. Based on the latest market data, the LTP ranges between Rs 1265 and Rs 236. Fig: Balance Sheet Items based on Q3 reports, 2077/78. However, Karnali Province has the lowest banking exposure with only 444 banking branches available. Investopaper.com is a financial website which provides news, articles, data and reports related to However, the break below the support line could signal the opposite and the consolidation can extend for quite some time. Likewise, the PE of bank and NEPSE are in some of the highest ever levels and therefore, caution and adequate entry-exit strategy especially for fresh buy positions have to be in place. Lesser confidence corresponds to decreased demands, especially in the short runs. Out of the total 753 local level branches across the country, only three branches of commercial banks are yet to be opened at the local level. A very high ratio could have implications at the systemic level. The investment perspective has also been provided based on the analysis. The data is categorized under Global Databases Nepal Table NP.KB007: Condensed Asset and Liabilities: Commercial Banks. Thank you so much for providing updated information related to BFIs. Entry level access to the CEIC platform for individual users. NABIL is the most expensive banking stock followed by NICA whereas CBL is the cheapest Banking stock followed by CCBL. Banks with reserve above the industry average (ranked): The average CD ratio for the banks is 78.74. These cookies are used to collect information about how you interact with our website and allow us to remember you. Also Read:Current Status Of Insurance In Nepal. Likewise, GBIME, PRVU, SBL, NBL, KBL, PCBL are outperforming the others in major key ratios and metrics. We use this information in order to improve and customize your browsing experience and for analytics and metrics about our visitors both on this website and other media. Commercial bank branches are retail locations of resident commercial banks and other resident banks that function as commercial banks that provide financial services to customers and are physically separated from the main office but not organized as legally separated subsidiaries. This website stores cookies on your computer. Earned interest minus paid interest is profit. If you decline, your information wont be tracked when you visit this website. Several development banks and finance companies have entered into a merger/acquisition agreement with commercial banks. To conclude, the banks performance improved since the last few quarters that was deteriorated because of the COVID pandemic. The 75% CD ratio which is way below the industry average suggests the bank is not earning as much as it could be. You can change your personal cookie settings through your internet browser settings. The Balance Sheet Analysis based on Q3, 2077/78, Fig: Balance Sheet Items as of Q3 reports, 2077/78, 2.1 Commercial Banks: Capital and Reserve. 8. Also Read:Contribution of Banking sector to the GDP of Nepal. 4. The table below shows the branches of BFIs in the different provinces (As of Mid Jan 2022). Of them, 27 commercial banks, 18 development banks, 20 finance companies, 74 microfinance financial institutions and one infrastructure development bank are in operation. As of mid-April 2076 BS, a total of 746 branches of commercial banks were opened at the local level only. St. Louis, MO 63102, Number per 100,000 adults, Annual, Not Seasonally Adjusted, Percent of GDP, Annual, Not Seasonally Adjusted, Number per 1,000 adults, Annual, Not Seasonally Adjusted, National Currency, Annual, Not Seasonally Adjusted, Use of Financial Services, Mobile Banking: Active Number of Mobile Money Accounts for Nepal, Deposit Money Bank Assets to GDP for Nepal, Percentage of Foreign Banks Among Total Banks for Nepal, Bank's Non-Interest Income to Total Income for Nepal, Use of Financial Services: Key Indicators, Outstanding Deposits with Commercial Banks for Nepal, Boone Indicator in Banking Market for Nepal, Geographical Outreach: Number of Automated Teller Machines (ATMs), Country Wide for Nepal, Bank's Overhead Costs to Total Assets for Nepal, Use of Financial Services: Key Indicators, Depositors with Commercial Banks Per 1000 Adults for Nepal, Use of Financial Services: Key Indicators, Loan Accounts with Commercial Banks Per 1,000 Adults for Nepal, Loans from Non-Resident Banks, Amounts Outstanding, to GDP for Nepal, Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for Nepal, Private Credit by Deposit Money Banks to GDP for Nepal, Use of Financial Services: Number of Depositors at Commercial Banks for Nepal, Geographical Outreach: Number of Commercial Banks for Nepal, Consolidated Foreign Claims of BIS-Reporting Banks to GDP for Nepal, Geographical Outreach: Key Indicators Commercial Bank Branches Per 100,000 Adults for Nepal, Geographical Outreach: Key Indicators, Mobile Banking, Registered Agent Outlets Per 100,000 Adults for Nepal, Geographical Outreach, Mobile Banking: Active Number of Agent Outlets for Nepal, Geographical Outreach: Number of Institutions, Other Depository Corporations, Other Deposit Takers for Nepal, Use of Financial Services: Key Indicators, Outstanding Loans from Commercial Banks for Nepal, Geographical Outreach: Number of Branches, Excluding Headquarters, for Commercial Banks for Nepal, Geographical Outreach, Mobile Banking: Registered Number of Agent Outlets for Nepal, Use of Financial Services: Key Indicators, Deposit Accounts with Commercial Banks Per 1000 Adults for Nepal, Use of Financial Services: Key Indicators, Borrowers from Commercial Banks Per 1000 Adults for Nepal, Percentage of Foreign Bank Assets Among Total Bank Assets for Nepal, Use of Financial Services, Assets: Outstanding Loans at Commercial Banks for Nepal, Use of Financial Services Deposit Accounts: Accounts at Commercial Banks for Nepal, Geographical Outreach: Number of Branches in 3 Largest Cities, Excluding Headquarters, for Commercial Banks for Nepal, Use of Financial Services: Number of Loan Accounts at Commercial Banks for Nepal, Deposit Money Bank Assets to Deposit Money Bank Assets and Central Bank Assets for Nepal, Geographical Outreach: Key Indicators Commercial Bank Branches Per 1000 Km2 for Nepal, Geographical Outreach: Key Indicators ATMs Per 1000 Km2 for Nepal, Use of Financial Services, Liabilities: Outstanding Deposits at Commercial Banks for Nepal, Geographical Outreach: Key Indicators, Mobile Banking, Registered Agent Outlets Per 1000 Km2 for Nepal, Use of Financial Services Borrowers: Persons Borrowing from Commercial Banks for Nepal. Registration No. This article was originally published in NEPSEWATCH; the weekly newsletter from Smart Wealth Pro. You can detailly analyze the companies using Smart Wealth Pros ratio analysis, stock screener and key financial section. Likewise, 15.56 lakh users are involved in the internet banking service. Nepal Bank Limited (NBL) has the highest reserve with a reserve of 21.51 Arba followed by NABIL and ADBL. Altogether, 4.18 crores deposit account exists in the A, B, or C class banks. The description is composed by our digital data assistant. It has broken the strong/historic resistance of 1779 as seen in the chart and has retested twice as seen in the weekly chart with the decline in volume indicating the sellers are less interested in selling at lower prices. Fig: Stock-Wise Price & Market Cap (as of Baisakh end), 2. The surge in volume with bullish price action should push the index higher and the buy decision could be executed accordingly. Condensed Asset and Liabilities: Commercial Banks, Nepal Commercial Banks: Total Asset or Liabilities (NPR mn), Forecast: GDP PPP Per Capita (PPP Intl $), Total Trade of Goods & Services: % of Nominal GDP (%), Consolidated Fiscal Balance: % of GDP (%), Forecast: Government Expenditure (NPR bn), Motor Vehicle Sales: Commercial Cars (Unit), Motor Vehicle Sales: Passenger Cars (Unit), Nepal NP: Exports: fob: Advanced Economies: Belgium (USD mn), Nepal NP: Exports: fob: Advanced Economies: Denmark (USD mn), Nepal NP: Exports: fob: Advanced Economies: France (USD mn), Nepal NP: Exports: fob: Advanced Economies: Germany (USD mn), Nepal NP: Exports: fob: Advanced Economies: Italy (USD mn), Nepal NP: Exports: fob: Advanced Economies: Luxembourg (USD mn), Nepal NP: Exports: fob: Advanced Economies: Netherlands (USD mn), Nepal NP: Exports: fob: Advanced Economies: Norway (USD mn), Nepal NP: Exports: fob: Advanced Economies: Sweden (USD mn), Nepal NP: Exports: fob: Advanced Economies: Switzerland (USD mn), Nepal NP: Exports: fob: Advanced Economies: Canada (USD mn), Nepal NP: Exports: fob: Advanced Economies: Japan (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Europe (USD mn), Nepal NP: Exports: fob: Advanced Economies: Finland (USD mn), Nepal NP: Exports: fob: Advanced Economies: Greece (USD mn), Nepal NP: Exports: fob: Advanced Economies: Iceland (USD mn), Nepal NP: Exports: fob: Advanced Economies: Ireland (USD mn), Nepal NP: Exports: fob: Advanced Economies: Malta (USD mn), Nepal NP: Exports: fob: Advanced Economies: Portugal (USD mn), Nepal NP: Exports: fob: Advanced Economies: Spain (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Europe: Emerging and (USD mn), Nepal NP: Exports: fob: Advanced Economies: Australia (USD mn), Nepal NP: Exports: fob: Advanced Economies: New Zealand (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Sub-Saharan Africa: S (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: A (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: B (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: C (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: D (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: E (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: M (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: P (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: U (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: V (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: G (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Western Hemisphere: T (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Middle East, North Af (USD mn), Nepal NP: Exports: fob: Advanced Economies: Cyprus (USD mn), Nepal NP: Exports: fob: Advanced Economies: Israel (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Emerging and Developi (USD mn), Nepal NP: Exports: fob: Advanced Economies: China, People Republic: Hong Kong (USD mn), Nepal NP: Exports: fob: Advanced Economies: Korea (USD mn), Nepal NP: Exports: fob: Advanced Economies: Singapore (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Sub-Saharan Africa: B (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Sub-Saharan Africa: C (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Sub-Saharan Africa: E (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Sub-Saharan Africa: G (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Sub-Saharan Africa: M (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Sub-Saharan Africa: N (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Sub-Saharan Africa: Z (USD mn), Nepal NP: Exports: fob: Emerging and Developing Economies: Sub-Saharan Africa: T (USD mn), Nepal NP: Exports: fob: Countries or Area Not Specified (USD mn).

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number of commercial bank in nepal 2021