Industry Analysis of Commercial Banks Review Period Ashadh 2081 Vs Ashadh 2080
Industry Analysis of Commercial Banks Review Period Ashadh 2081 Vs Ashadh 2080
Published 13 September, 2024
Banking Analytics
Industry Analysis of National Level Development Bank Review Period Ashadh 2081 Vs Ashadh 2080
Published: 10 September, 2024 | By: Tathyanka Admin
Despite some major economic challenges and slowdown in overall economy, quarterly results published by national level development banks as on Ashadh 2081 shows convincing and adequate growth in major performance indicators . In this article we have tried to highlight the major performance indicators of national level development banks as on Ashadh 2081.
Industry and Development Bank Deposit and Credit Status
|
Deposit Growth |
Credit Growth |
|
Year on Year Industry Deposits of overall banks and financial institutions grew by 12.55% i.e. from Rs. 5,771.24 Billion to Rs. 6,495.58 Billion compared to Ashadh 2081 and Ashadh 2080. Overall industrial deposits of Development Banks grew by 6.75% from Rs.571.57 million to Rs.610.17 million during this period. |
Macro-economic scenarios remained at stress due to weak business growth, tightening cash flows amongst public and poor domestic consumption. Despite restrictive credit lending practices credit growth of overall industry remained at 5.97% i.e. from Rs.4,877.41 Billion to Rs.5,168.66 Billion compared. Overall Loans of Development Banks grew by 6.26% from Rs.501.43 million to Rs.471.89 million. |
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Performance Analysis of National Level Development Banks- Ashadh 2081
Analysis -1: Gross Loan
| What does Gross Loans mean to Bank?
Gross Loans mean total value of loans and advances consisting of Loans and Advances, Accrued Interest Receivable (AIR), Staff Loan and Gross LLP. Loans are assets to the Bank and are booked under Bank’s Balance Sheet under assets head. |
In terms of Gross Loan, Muktinath Bikas Bank followed by Garima Bikas Bank and Shine Resunga Development Bank tops the rank amongst all national level development banks, with total gross portfolio size of Rs. 94.65 Billion while its year on year gross loan growth is negative by 2.76%. In terms of best Year on Year growth, Shine Resunga Development Bank achieved the 18.77% gross loan growth. Average industrial growth for 8 national level development banks remains at 5.64% with growth of Rs.3.28 Billion from Rs.54.86 Billion to Rs.58.14 Billion. Muktinath Bikas Bank and Jyoti Bikas Bank were the only Bank’s whose deposit felt below industrial growth average.
In Billions
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs. in Bn) |
Change (%) |
Ranking |
|
Muktinath |
97.34 |
94.65 |
(2.68) |
-2.76% |
1 |
|
Garima |
65.51 |
71.38 |
5.88 |
8.97% |
2 |
|
Shine Resunga |
45.96 |
54.59 |
8.63 |
18.77% |
3 |
|
Jyoti |
54.81 |
53.81 |
(1.00) |
-1.82% |
4 |
|
Kamana Sewa |
46.77 |
50.16 |
3.39 |
7.24% |
5 |
|
Lumbini |
44.57 |
49.48 |
4.91 |
11.03% |
6 |
|
Mahalaxmi |
41.81 |
45.54 |
3.73 |
8.92% |
7 |
|
Shangrila |
42.15 |
45.53 |
3.38 |
8.01% |
8 |
|
Average industry |
54.86 |
58.14 |
3.28 |
5.64% |
|
Analysis -2: Deposits
|
What Does Deposit mean to Banks? Deposits if the total fund collected by the Bank from its customers. Deposit is shown in liability side of Bank’s Balance Sheet which consists of “Due to Bank and Financial Institutions” and “Deposit from Customers”. Banks normally collect deposit in a form of Fixed, Saving, Current, Call, Margin, Recurring accounts. |
Deposit Performance Analysis
Deposit Volume of National Level Development Banks grew by 5.45% on an average from Rs. 66.31 Billion to Rs. 70.13 Billion. Muktinath Bikas Bank has highest portfolio size of Rs.110.53 Billion as on Ashadh 2081 followed by Graima Bikas Bank and Jyoti Bikas Bank. Two Banks were able to achieve double digit growth in Deposits namely Lumbini Bikas Bank with 18.16% growth followed by Shine Resunga Development Bank with 17.56% growth. Muktinath Bikas Bank is the only bank having negative deposit growth of 6.69%.
In Billions
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change (%) |
Ranking |
|
Muktinath |
118.45 |
110.53 |
(7.92) |
-6.69% |
1 |
|
Garima |
79.07 |
86.04 |
6.97 |
8.81% |
2 |
|
Jyoti |
64.70 |
67.56 |
2.86 |
4.42% |
3 |
|
Shine Resunga |
56.42 |
66.33 |
9.91 |
17.56% |
4 |
|
Kamana Sewa |
55.74 |
59.69 |
3.96 |
7.10% |
5 |
|
Lumbini |
50.10 |
59.19 |
9.10 |
18.16% |
6 |
|
Mahalaxmi |
53.52 |
56.12 |
2.61 |
4.87% |
7 |
|
Shangrila |
52.51 |
55.59 |
3.08 |
5.87% |
8 |
|
Average industry |
66.31 |
70.13 |
3.82 |
5.45% |
|
Analysis -3: Net Interest Income (NII)
|
What Does Net Interest Income (NII) mean to Banks? Interest Income is recognized on interest bearing advances and financial assets whose income is booked to statement of profit or loss under interest income, whereas Interest Expenses is booked on interest bearing deposits or financial liabilities whose expenses is booked in statement of profit or loss under interest expenses. The net difference between these income and expenses is referred as Net Interest Income (NII). |
Net Interest Income (NII) Performance Analysis
Net Interest Income is the difference between Interest Income and Interest Expenses of the Bank. NII is the major source of Bank’s revenue. NII of 5 national level development Banks shows positive growth whereas of 3 Banks shows negative growth as on Ashadh 2081. Leading the NII in terms of volume is Muktinath Bikas Bank with Rs. 4,183.10 Million of NII followed by Garima with Rs.3465.45 Million NII. Highest Year-on-Year growth on NII was achieved by Garima Bikas Bank with 6.17% annual increment followed by Shine Resunga Development Bank with 6.14% annual increment. During the review period, Lumbini Bikas Bank’s NII decreased by Rs.36.14 Million. Industry Average NII growth stands at 2.53%.
In Millions
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Muktinath |
4,104.09 |
4,183.10 |
79.00 |
1.92% |
1 |
|
Garima |
3,263.99 |
3,465.45 |
201.47 |
6.17% |
2 |
|
Jyoti |
2,368.23 |
2,365.51 |
(2.72) |
-0.11% |
3 |
|
Shine Resunga |
2,117.28 |
2,247.23 |
129.95 |
6.14% |
4 |
|
Kamana Sewa |
2,067.66 |
2,125.22 |
57.55 |
2.78% |
5 |
|
Mahalaxmi |
1,946.06 |
1,931.70 |
(14.36) |
-0.74% |
6 |
|
Shangrila |
1,791.62 |
1,882.28 |
90.65 |
5.06% |
7 |
|
Lumbini |
1,843.79 |
1,807.65 |
(36.14) |
-1.96% |
8 |
|
Average industry |
2,437.84 |
2,501.02 |
63.18 |
2.53% |
|
Analysis -4: Net Fee and Commission Income (NFCI)
|
What Does Net Fee and Commission Income (NFCI) mean to Banks? Net Fees and Commission Income is supplementary source of revenue in addition to Net Interest Income of the Bank consisting of charges, fees or commission on products or services offered by the Bank. Bank’s normally collect loan administration fees, renewal fees, digital banking fees, card issuance fees, remittance commission among others. |
Net Fees and Commission Income Performance Analysis
During the review period Muktinath Bikas Bank managed to collect highest value of NFCI of Rs. 462.17 Million though its year on year growth is negative by 63.53 Million. Shangrila Development Bank managed to increase its NFCI by 34.09% during the review period. Overall industrial average growth remained at 8.41% with 6 Banks being able to achieve growth above industrial average except Muktinath Bikas Bank and Jyoti Bikas Bank.
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Muktinath |
525.70 |
462.17 |
(63.53) |
-12.08% |
1 |
|
Garima |
386.41 |
445.94 |
59.54 |
15.41% |
2 |
|
Shine Resunga |
255.46 |
300.27 |
44.80 |
17.54% |
3 |
|
Kamana Sewa |
241.65 |
269.25 |
27.60 |
11.42% |
4 |
|
Mahalaxmi |
181.29 |
207.18 |
25.89 |
14.28% |
5 |
|
Jyoti |
198.43 |
202.68 |
4.25 |
2.14% |
6 |
|
Shangrila |
148.89 |
199.64 |
50.75 |
34.09% |
7 |
|
Lumbini |
154.37 |
197.10 |
42.73 |
27.68% |
8 |
|
Average industry |
261.52 |
285.53 |
24.00 |
8.41% |
|
Analysis -5: Impairment Charges
|
What Does Impairment Charges mean to Banks? Impairment Charges are charges recognized as expenses by Banks when Bank expects that they will not recover full amount of expected cash flows of loans. Impairment Charges are reversed if the expected cash flows are lateral realized. Banks try to minimize their Impairment Charges to increase their profitability through stronger recovery actions. |
Impairment Charges Performance Analysis
Impairment charges of overall industry decreased by 11.36% during the review period. Lumbini Bikas Bank managed to downsize its impairment charges by 68.68% followed by Kaman Sewa Bikas Bank whose impairment charges decreased by 41.83% as compared to Ashadh 2080 due to reversal of impairment charges for loans and advances. Highest volume of impairment charges was booked by Jyoti Bikas Bank of Rs. 951.67 Million. Impairment charges of Garima Bikas Bank and Shine Resunga Development Bank increased drastically by 71.61% and 61.29% respectively.
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Lumbini |
545.73 |
170.92 |
(374.81) |
-68.68% |
1 |
|
Kamana Sewa |
522.69 |
304.05 |
(218.65) |
-41.83% |
2 |
|
Mahalaxmi |
506.87 |
370.10 |
(136.76) |
-26.98% |
3 |
|
Shangrila |
533.46 |
377.19 |
(156.27) |
-29.29% |
4 |
|
Shine Resunga |
303.99 |
490.31 |
186.32 |
61.29% |
5 |
|
Muktinath |
698.68 |
648.58 |
(50.10) |
-7.17% |
6 |
|
Garima |
413.27 |
709.23 |
295.96 |
71.61% |
7 |
|
Jyoti |
954.36 |
951.67 |
(2.68) |
-0.28% |
8 |
|
Average industry |
559.88 |
502.76 |
(57.12) |
-11.36% |
|
Analysis -6: Personnel Expenses (Excluding Bonus)
|
What Does Personnel Expenses mean to Banks? Personnel expenses includes expenses related to employees of the Bank. Personnel Expenses mostly include staff’s salary, allowances, pension, gratuity, contribution to provident fund, training expenses, uniform expenses, insurance, staff bonus, finance expense under NFRS etc. Banks are required to create provision for staff bonus which is a mandatory requirement under the requirement of the Bonus Act, 2074. Amount of bonus is not included here under analysis. |
Personnel Expenses (Excluding Bonus) Performance Analysis
Lumbini Bikas Bank seems to have best managed its staff costs with lowest Personnel Expenses of Rs.398.87 as on Ashadh 2081. Highest amount of personnel expenses lies with Muktinath Bikas Bank of Rs.1,343.18 Million. In terms of highest Y-o-Y growth, Personnel Expenses of Garima Bikas Bank increased by 10.32% as compared to previous year. In terms of lowest increment in Personnel Expenses, Jyoti Bikas Bank managed to decrease its costs by 4.57% followed by slight increment of 0.30% by Kamana Sewa Bikas Bank. Overall Industry’s average personnel expenses grew at 4.14% y-o-y.
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Lumbini |
384.20 |
398.87 |
14.67 |
3.82% |
1 |
|
Shine Resunga |
458.90 |
482.64 |
23.74 |
5.17% |
2 |
|
Shangrila |
532.05 |
560.36 |
28.30 |
5.32% |
3 |
|
Mahalaxmi |
617.84 |
631.15 |
13.31 |
2.15% |
4 |
|
Kamana Sewa |
662.65 |
664.63 |
1.98 |
0.30% |
5 |
|
Jyoti |
707.04 |
674.76 |
(32.28) |
-4.57% |
6 |
|
Garima |
709.61 |
782.83 |
73.22 |
10.32% |
7 |
|
Muktinath |
1,237.01 |
1,343.18 |
106.16 |
8.58% |
8 |
|
Average industry |
663.66 |
692.30 |
28.64 |
4.14% |
|
Per branch staff expenses (Excluding bonus) Performance Analysis
Lumbini Bikas Bank seems to have lowest per branch staff costs of Rs.4.48 Million as compared to others followed by Kamana Sewa Bikas Bank with per branch staff cost of Rs.4.92 Million. In terms of highest per branch staff costs Muktinath Bikas Bank had Rs.7.11 Million per branch staff cost. The only Bank whose per branch staff expenses has decreased as compared to earlier year is Jyoti Bikas Bank whose per branch staff cost decreased by 6.87% Y-o-Y. In terms of highest Y-o-Y growth, Garima Bikas Bank’s per branch staff cost grew by 10.32% from Rs.5.77 Million to Rs.6.36 Million. Overall industry’s per branch average staff costs grew at 2.81% Y-o-Y.
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Lumbini |
4.47 |
4.48 |
0.01 |
0.32% |
1 |
|
Kamana Sewa |
4.91 |
4.92 |
0.01 |
0.30% |
2 |
|
Shangrila |
4.79 |
5.00 |
0.21 |
4.38% |
3 |
|
Shine Resunga |
5.40 |
5.42 |
0.02 |
0.45% |
4 |
|
Jyoti |
5.84 |
5.44 |
(0.40) |
-6.87% |
5 |
|
Mahalaxmi |
6.00 |
6.13 |
0.13 |
2.15% |
6 |
|
Garima |
5.77 |
6.36 |
0.60 |
10.32% |
7 |
|
Muktinath |
6.58 |
7.11 |
0.53 |
8.01% |
8 |
|
Average industry |
5.47 |
5.61 |
4.53 |
2.81% |
|
Analysis -7: Operating Expenses
|
What Does Operating Expenses mean to Banks? Operating expenses of the Bank includes day to day operation related expenses and consists of Personnel Expenses, Depreciation and Amortization and other operating expenses of the Bank like Operating Expenses consists of Administration Expenses, Audit Fees, Lease Expenses among others. |
Operating Expenses Performance Analysis
Kamana Sewa Bikas Bank seems to have best managed its operating expenses with lowest Operating Expenses of Rs.264.68 as on Ashadh 2081. Highest amount of operating expenses is incurred by Garima Bikas Bank of Rs.510.70 Million. In terms of highest Y-o-Y growth, Operating Expenses of Lumbini Bikas Bank increased by 40.71% as compared to previous year. Jyoti Bikas Bank and Muktinath Bikas Bank managed to decrease their operating expenses by 7.14% and 4.31% respectively during the review period. Overall Industry’s average operating expenses grew by 5.38% y-o-y.
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Kamana Sewa |
253.91 |
264.68 |
10.77 |
4.24% |
1 |
|
Lumbini |
208.10 |
292.82 |
84.72 |
40.71% |
2 |
|
Shangrila |
289.33 |
296.51 |
7.18 |
2.48% |
3 |
|
Shine Resunga |
281.12 |
309.14 |
28.02 |
9.97% |
4 |
|
Jyoti |
385.28 |
357.78 |
(27.50) |
-7.14% |
5 |
|
Mahalaxmi |
352.29 |
364.86 |
12.57 |
3.57% |
6 |
|
Muktinath |
461.04 |
441.17 |
(19.87) |
-4.31% |
7 |
|
Garima |
453.99 |
510.70 |
56.71 |
12.49% |
8 |
|
Average industry |
335.63 |
354.71 |
19.07 |
5.38% |
|
Per Branch Operating Expenses Performance Analysis
In terms of per branch operating expenses also, Kamana Sewa Bikas Bank seems to have lowest per branch operating costs of Rs. 1.96 Million followed by Muktinath Bikas Bank with Rs.2.33 Million. In terms of Year-on-Year variance Muktinath Bikas Bank and Jyoti Bikas Bank were the only two banks whose per branch operating expenses has decreased as compared to earlier year whereas Lumbini Bikas Bank’s per branch operating expenses increased by hefty 35.97% during the review period. Overall Industry’s average per branch operating expenses grew by 5.45% y-o-y.
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Kamana Sewa |
1.88 |
1.96 |
0.08 |
4.24% |
1 |
|
Muktinath |
2.45 |
2.33 |
(0.12) |
-4.82% |
2 |
|
Shangrila |
2.61 |
2.65 |
0.04 |
1.57% |
3 |
|
Jyoti |
3.18 |
2.89 |
(0.30) |
-9.38% |
4 |
|
Lumbini |
2.42 |
3.29 |
0.87 |
35.97% |
5 |
|
Shine Resunga |
3.31 |
3.47 |
0.17 |
5.03% |
6 |
|
Mahalaxmi |
3.42 |
3.54 |
0.12 |
3.57% |
7 |
|
Garima |
3.69 |
4.15 |
0.46 |
12.49% |
8 |
|
Average industry |
2.87 |
3.04 |
0.17 |
5.45% |
|
Analysis -8: Loan Write-offs
|
What Does Loan Write-offs mean to Banks? Loans are written off by the Banks when Bank’s consider loans to be uncollectable even after necessary recovery efforts from the Bank. Written off loans are removed from Bank’s Balance Sheet and are booked as expenses under non-operating expenses of the Bank reducing Bank’s profit. |
Loan Write-offs Performance Analysis
During the review period Jyoti Bikas Bank and Garima Bikas Bank have not written-offs any loans whereas highest value of loan was written-off by Kamana Sewa Bikas Bank of Rs.69.99 Million. In terms of Y-o-Y comparison Shine Resunga Development Bank’s and Muktinath Bikas Bank’s write-off expenses surged by 644.44% and 157.29% respectively. Overall Industry’s average Loan Write-off expenses decreased by 1.37% y-o-y.
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Kamana Sewa |
108.39 |
69.99 |
(38.40) |
-35.43% |
1 |
|
Muktinath |
10.26 |
26.39 |
16.13 |
157.29% |
2 |
|
Lumbini |
18.33 |
22.68 |
4.35 |
23.76% |
3 |
|
Shine Resunga |
2.45 |
18.21 |
15.77 |
644.44% |
4 |
|
Mahalaxmi |
9.67 |
11.37 |
1.70 |
17.60% |
5 |
|
Shangrila |
5.83 |
4.17 |
(1.66) |
-28.43% |
6 |
|
Jyoti |
- |
0.00 |
0.00 |
0.00% |
7 |
|
Garima |
- |
- |
- |
0.00% |
8 |
|
Average industry |
19.36 |
19.10 |
(0.26) |
-1.37% |
|
Analysis -9: Net Profit After Tax (NPAT)
|
What Does Net Profit After Tax (NPAT) mean to Banks? Net Profit After Tax (NPAT) means the final profit after deduction of all the expenses and taxes of the Bank. Net Profit helps to judge the profitability healthiness of the Bank. Higher the NPAT better is the bank’s performance in terms of return to shareholders. |
Net Profit After Tax Performance Analysis
Average Net Profit After Tax of overall national level development banks grew at 8.59% Y-o-Y. Shangrila Development Bank managed to increase its NPAT by 92.47% from Rs. 270.41 Million to Rs. 520.47 Million followed by Kamana Sewa Bikas Bank with 66.93% increment from Rs. 361.36 Million to Rs.603.22 Million. NPAT of Jyoti Bikas Bank decreased by 18.33% and remained at 246.50 Million. Most of the Banks managed to achieve positive NPAT growth except Garima Bikas Bank, Shine Resunga Development Bank and Jyoti Bikas Bank.
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Muktinath |
1,248.23 |
1,279.13 |
30.91 |
2.48% |
1 |
|
Garima |
1,264.68 |
1,136.18 |
(128.50) |
-10.16% |
2 |
|
Shine Resunga |
758.03 |
697.45 |
(60.58) |
-7.99% |
3 |
|
Lumbini |
497.67 |
603.78 |
106.11 |
21.32% |
4 |
|
Kamana Sewa |
361.36 |
603.22 |
241.85 |
66.93% |
5 |
|
Shangrila |
270.41 |
520.47 |
250.06 |
92.47% |
6 |
|
Mahalaxmi |
377.55 |
470.14 |
92.59 |
24.52% |
7 |
|
Jyoti |
301.82 |
246.50 |
(55.32) |
-18.33% |
8 |
|
Average industry |
634.97 |
694.61 |
59.64 |
8.59% |
|
Analysis -10: Distributable Profit and DPS
|
What Does Distributable Profit and DPS mean to Banks? Distributable Profit (DP) means the final profit which is available for distribution to shareholders. If the same distributable profit is divided by number of available shares with Bank then Dividend Per Share (DPS) is derived which shows how much dividend a share will generate. Higher the distributable profit and DPS better will be the Bank from Shareholders perspective. |
Distributable Profit and DPS Performance Analysis
All national level development banks except Jyoti Bikas Bank have positive distributable profit as on Ashadh 2081.Year-on-Year industrial average distributable profit decreased by 32.60% during Ashadh 2081 as compared to Ashadh 2080. Kamana Sewa Bikas Bank managed to increase its distributable profit by massive 578.36% as compared to previous year. Thanks to its increased net profit and lower apportionment of AIR balance to regulatory reserve as compared to previous year, its distributable profit remained at Rs.305.12 Million with DPS of Rs.10.91 per share. Garima Bikas Bank has the highest Distributable Profit amount of Rs.597.50 Million with DPS of Rs. 10.52 per share. Jyoti Bikas Bank performed worst in terms of distributable profit as its distributable profit decreased by hefty 13,848.46% and remained negative 408.24 Million as on Ashadh 2081.
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Garima |
517.66 |
597.50 |
79.84 |
15.42% |
1 |
|
Shine Resunga |
477.28 |
384.30 |
(92.98) |
-19.48% |
2 |
|
Kamana Sewa |
52.76 |
357.88 |
305.12 |
578.36% |
3 |
|
Muktinath |
673.94 |
331.84 |
(342.09) |
-50.76% |
4 |
|
Lumbini |
300.86 |
260.33 |
(40.53) |
-13.47% |
5 |
|
Shangrila |
202.30 |
177.80 |
(24.50) |
-12.11% |
6 |
|
Mahalaxmi |
267.19 |
177.14 |
(90.05) |
-33.70% |
7 |
|
Jyoti |
2.95 |
(405.29) |
(408.24) |
-13848.46% |
8 |
|
Average industry |
311.87 |
235.19 |
(76.68) |
-32.60% |
|
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change (%) |
Rank |
|
Kamana Sewa |
1.61 |
10.91 |
9.30 |
578.36% |
1 |
|
Mahalaxmi |
6.41 |
4.25 |
(2.16) |
-33.70% |
7 |
|
Muktinath |
10.50 |
4.71 |
(5.79) |
-55.14% |
6 |
|
Garima |
9.98 |
10.52 |
0.54 |
5.41% |
2 |
|
Shine Resunga |
11.14 |
8.12 |
(3.02) |
-27.11% |
3 |
|
Lumbini |
8.89 |
7.40 |
(1.49) |
-16.76% |
4 |
|
Jyoti |
0.07 |
(9.22) |
(9.29) |
-13861.19% |
8 |
|
Shangrila |
6.19 |
5.18 |
(1.01) |
-16.32% |
5 |
|
Average industry |
6.85 |
5.23 |
(1.61) |
-30.85% |
|
Analysis -11: Non-Banking Assets (NBA)
|
What Does Non-Banking Assets (NBA) mean to Banks? If a loan provided is defaulted, then Bank may sell the collateral held and recover the dues of borrower from such collateral sales. However, sometimes the collateral may not be sold and Bank may have to itself take such assets. Such assets are Non-Banking Assets to the Bank, which are shown under Investment Property under Balance Sheets. |
Non-Banking Assets Performance Analysis
Highest amount of NBA was booked by Jyoti Bikas Bank of Rs. 510.06 Million in a year up by 279.64% as compared to earlier year. However, lowest volume of Non-Banking Assets lies in the Books of Shine Resunga Development Bank at Rs.130.02 Million followed by Graima Bikas Bank of Rs. 198.25 Million. Kamana Sewa Bikas Bank seems to have effectively managed its NBA by being able to sell NBA equivalent to Rs.22.16 million reducing erstwhile NBA by 5.92%. Overall Industry’s NBA increased by 31.90% during the review period.
In Million
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change (%) |
Ranking |
|
Shine Resunga |
90.33 |
130.02 |
39.69 |
43.94% |
1 |
|
Garima |
187.27 |
198.25 |
10.98 |
5.86% |
2 |
|
Lumbini |
169.42 |
203.96 |
34.55 |
20.39% |
3 |
|
Shangrila |
124.32 |
288.16 |
163.85 |
131.80% |
4 |
|
Kamana Sewa |
374.30 |
352.14 |
(22.16) |
-5.92% |
5 |
|
Muktinath |
256.08 |
432.50 |
176.42 |
68.89% |
6 |
|
Mahalaxmi |
543.04 |
532.45 |
(10.59) |
-1.95% |
7 |
|
Jyoti |
182.40 |
692.46 |
510.06 |
279.64% |
8 |
|
Average industry |
240.89 |
353.74 |
112.85 |
31.90% |
|
Analysis -12: Base Rate
|
What Does Base Rate mean to Banks? Base Rate is the floor rate upon which premium is charged by Banks to derive lending rate. Base rate consists of Cost of Fund, Cost of CRR, Cost of SLR and Operating Costs of the Bank. Higher base rate means Banks are obtaining funds at higher rate and lower base rate means banks are obtaining funds at lower rates. Higher Base rate also means expensive lending rates and lower base rate means cheaper lending rates. |
Base Rate Performance Analysis
During the review period Industry average base rate remained at 9.07%. As compared to earlier year, Base rate of all the national level development banks have decreased due to falling cost of deposits. Shine Resunga Development Bank has lowest Base Rate of 8.32% whereas Jyoti Bikas Bank’s base rate of 9.41% is the highest amongst peer.
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Shine Resunga |
11.36% |
8.32% |
-3.04% |
-26.76% |
1 |
|
Garima |
11.78% |
8.67% |
-3.11% |
-26.40% |
2 |
|
Muktinath |
11.86% |
9.09% |
-2.77% |
-23.36% |
3 |
|
Shangrila |
12.15% |
9.20% |
-2.95% |
-24.28% |
4 |
|
Kamana Sewa |
11.93% |
9.20% |
-2.73% |
-22.88% |
4 |
|
Mahalaxmi |
11.44% |
9.25% |
-2.19% |
-19.14% |
5 |
|
Lumbini |
12.02% |
9.40% |
-2.62% |
-21.80% |
6 |
|
Jyoti |
12.15% |
9.41% |
-2.74% |
-22.55% |
7 |
|
Average industry |
11.84% |
9.07% |
-2.77% |
|
|
Analysis -13: Earning Per Share (EPS)
|
What Does Earning Per Share mean to Banks? Earnings Per Share (EPS) is the amount of profit earned by the Bank equivalent to each of its share. Higher the EPS, better it is and vice versa. It is computed by dividing Net Profit by total number of shares of the Bank. |
Earnings Per Share Performance Analysis
Garima Bikas Bank has the highest EPS of Rs.20 per share followed by Kamana Sewa Bikas Bank with Rs.18.38 per share. Five banks have their EPS above industrial average of 15.06 whereas 3 banks have their EPS below industrial average. Jyoti Bikas Bank has the lowest EPS of Rs. 5.61 per share as on Ashadh 2081.
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change (Rs.) |
Change% |
Ranking |
|
Garima |
22.26 |
20.00 |
(2.26) |
-10.15% |
1 |
|
Kamana Sewa |
11.01 |
18.38 |
7.37 |
66.94% |
2 |
|
Muktinath |
17.71 |
18.15 |
0.44 |
2.48% |
3 |
|
Lumbini |
14.71 |
17.16 |
2.45 |
16.66% |
4 |
|
Shangrila |
8.28 |
15.17 |
6.89 |
83.21% |
5 |
|
Shine Resunga |
17.69 |
14.73 |
(2.96) |
-16.73% |
6 |
|
Mahalaxmi |
9.05 |
11.27 |
2.22 |
24.53% |
7 |
|
Jyoti |
6.87 |
5.61 |
(1.26) |
-18.38% |
8 |
|
Average industry |
13.45 |
15.06 |
1.61 |
10.70% |
|
Analysis -14: Non-Performing Loan (NPL)
|
What Does Non-Performing Loan mean to Banks? Non-Performing Loans (NPL) are those loans which are classified under Doubtful, Substandard and Bad as per the NRB provisions. Higher Non-Performing Loans ratio means higher probability of loan defaults, so Banks try to maintain NPL as low as possible. |
Non-Performing Loans (NPL) Performance Analysis
Industry Average non-performing loan (NPL) of overall industry remained at 3.59% as on Ashadh 2081. Higher NPL triggers increased risk of credit defaults and lower changes of credit recovery, so bank’s try to restrict their NPL as low as possible. During the review period, Muktinath Bikas Bank managed to keep its NPL at 2.26% which is lowest amongst peers, followed by Garima Bikas Bank with 2.89% NPL. Highest NPL was reported by Jyoti Bikas Bank of 4.95% as on Ashadh 2081. Considering Y-o-Y growth, NPL of Shine Resunga Development Bank’s growth of 1.62% was highest amongst the peer.
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
YOY Change |
Ranking |
|
Muktinath |
0.98% |
2.26% |
1.28% |
1 |
|
Garima |
1.70% |
2.89% |
1.19% |
2 |
|
Kamana Sewa |
3.09% |
3.21% |
0.12% |
3 |
|
Lumbini |
3.01% |
3.29% |
0.28% |
4 |
|
Shine Resunga |
1.81% |
3.43% |
1.62% |
5 |
|
Shangrila |
3.16% |
4.08% |
0.92% |
6 |
|
Mahalaxmi |
3.51% |
4.58% |
1.07% |
7 |
|
Jyoti |
3.43% |
4.95% |
1.52% |
8 |
|
Average industry |
2.59% |
3.59% |
1.00% |
|
Analysis -15: Cost of Fund
|
What Does Cost of Fund mean to Banks? Cost of Fund means the cost incurred by the Bank to obtain funds in a form of deposit or borrowings. It includes cost of local currency deposit and borrowings obtained by the Bank. |
Cost of Fund Performance Analysis
During the review period lowest cost of fund was of Muktinath Bikas Bank at 6.54% followed by 6.56%. This means these banks are soliciting funds at lower costs than peers. However, cost of fund of Lumbini Bikas Bank remained highest amongst peer at 7.59% as on Ashadh 2081. Industry average cost of fund remained at 6.87% as on Ashadh 2081.
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
YOY Change |
Ranking |
|
Muktinath |
9.52% |
6.54% |
-2.98% |
1 |
|
Shine Resunga |
9.36% |
6.56% |
-2.80% |
2 |
|
Garima |
9.61% |
6.64% |
-2.97% |
3 |
|
Shangrila |
9.71% |
6.78% |
-2.93% |
4 |
|
Jyoti |
9.47% |
6.90% |
-2.57% |
5 |
|
Kamana Sewa |
9.37% |
6.94% |
-2.43% |
6 |
|
Mahalaxmi |
9.18% |
7.03% |
-2.15% |
7 |
|
Lumbini |
9.87% |
7.59% |
-2.28% |
8 |
|
Average industry |
9.51% |
6.87% |
-2.64% |
|
Analysis -16: Capital Adequacy Ratio (CAR)
|
What Does Capital Adequacy Ratio mean to Banks? Capital Adequacy Ratio (CAR) measures the sufficiency of Bank’s capital in terms of its credit, operation and market or liquidity risk weighted exposures. It indicates the sufficiency of Bank’s capital commensurate to risk pertaining to business growth, gross income and open position. NRB has mandated banks to maintain CAR of at least 11% in line with Capital Adequacy Framework, 2015. |
Capital Adequacy Ratio (CAR) Performance Analysis
Industrial average CAR remained at 13.21% as on Ashadh 2081. Mahalaxmi Bikas Bank managed to remain at top with CAR of 15.01% whose Y-o-Y CAR increased by 1.58% as compared to earlier year followed by Garima Bikas Bank with CAR of 14.29% a fall of 0.57% from earlier year. Lowest CAR was reported by Jyoti Bikas Bank of 12.39%.
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
YOY Change |
Ranking |
|
Mahalaxmi |
13.43% |
15.01% |
1.58% |
1 |
|
Garima |
13.69% |
14.29% |
0.60% |
2 |
|
Lumbini |
13.29% |
13.30% |
0.01% |
3 |
|
Shangrila |
12.41% |
12.89% |
0.48% |
4 |
|
Kamana Sewa |
12.24% |
12.73% |
0.49% |
5 |
|
Shine Resunga |
13.29% |
12.64% |
-0.65% |
6 |
|
Muktinath |
11.77% |
12.43% |
0.66% |
7 |
|
Jyoti |
12.96% |
12.39% |
-0.57% |
8 |
|
Average industry |
12.89% |
13.21% |
0.33% |
|
Analysis -17: Credit to Deposit (CD) Ratio
|
What Does CD Ratio mean to Banks? Credit to Deposit (CD) ratio is the measure which shows proportion of credit and deposit mix of the Bank. Till Ashadh 2081 Banks were allowed to include 50% of their debenture as part of deposit. NRB has set maximum limit of CD ratio at 90%. Higher CD ratio means higher portion of lending as compared to Bank’s deposit volume and lower CD ration means lower portion of lending as compared to Bank’s deposit volume. Banks try to maintain optimum CD ratio by balancing between credit and deposit mix. |
Credit to Deposit (CD) ratio Performance Analysis
During the review period industrial average CD ratio remained at 82.17%. Muktinath Bikas Bank had the highest CD ratio of 85.83% followed by Kamana Sewa Bikas Bank of 83.28%. Lowest CD ratio was reported by Jyoti Bikas Bank of 78.69% a fall by 8.21% as compared to earlier year.
|
Bank |
Ashadh 2080 |
Ashadh 2081 |
Change |
Ranking |
|
Muktinath |
81.89% |
85.83% |
3.94% |
1 |
|
Kamana Sewa |
82.62% |
83.28% |
0.66% |
2 |
|
Garima |
82.96% |
82.72% |
-0.24% |
3 |
|
Lumbini |
88.71% |
82.36% |
-6.35% |
4 |
|
Shine Resunga |
81.47% |
82.05% |
0.58% |
5 |
|
Shangrila |
79.03% |
81.62% |
2.59% |
6 |
|
Mahalaxmi |
78.12% |
80.83% |
2.71% |
7 |
|
Jyoti |
86.90% |
78.69% |
-8.21% |
8 |
|
Average industry |
82.71% |
82.17% |
-0.54% |
|
Summary of Key Performance Indicators
Balance Sheet Key Indicators
|
Bank |
Loans |
Ranking |
Deposit |
Ranking |
Non-Banking Assets |
Ranking |
|
Muktinath |
94.65 |
1 |
110.53 |
1 |
432.50 |
6 |
|
Garima |
71.38 |
2 |
86.04 |
2 |
198.25 |
2 |
|
Shine Resunga |
54.59 |
3 |
66.33 |
4 |
130.02 |
1 |
|
Jyoti |
53.81 |
4 |
67.56 |
3 |
692.46 |
8 |
|
Kamana Sewa |
50.16 |
5 |
59.69 |
5 |
352.14 |
5 |
|
Lumbini |
49.48 |
6 |
59.19 |
6 |
203.96 |
3 |
|
Mahalaxmi |
45.54 |
7 |
56.12 |
7 |
532.45 |
7 |
|
Shangrila |
45.53 |
8 |
55.59 |
8 |
288.16 |
4 |
|
Average industry |
58.14 |
|
70.13 |
|
353.74 |
|
Profitability, Income and Expenses Indicators
|
Bank |
Net Interest Income |
Rank |
Net Fee and Commission Income |
Rank |
Impairment Charge |
Rank |
Personnel Expenses(Excluding. Bonus) |
Rank |
Per branch staff expenses (excl bonus) |
Rank |
||||||||
|
Muktinath |
4,183.10 |
1 |
462.17 |
1 |
648.58 |
6 |
1,343.18 |
8 |
7.11 |
8 |
||||||||
|
Garima |
3,465.45 |
2 |
445.94 |
2 |
709.23 |
7 |
782.83 |
7 |
6.36 |
7 |
||||||||
|
Shine Resunga |
2,247.23 |
4 |
300.27 |
3 |
490.31 |
5 |
482.64 |
2 |
5.42 |
4 |
||||||||
|
Jyoti |
2,365.51 |
3 |
202.68 |
6 |
951.67 |
8 |
674.76 |
6 |
5.44 |
5 |
||||||||
|
Kamana Sewa |
2,125.22 |
5 |
269.25 |
4 |
304.05 |
2 |
664.63 |
5 |
4.92 |
2 |
||||||||
|
Lumbini |
1,807.65 |
8 |
197.10 |
8 |
170.92 |
1 |
398.87 |
1 |
4.48 |
1 |
||||||||
|
Mahalaxmi |
1,931.70 |
6 |
207.18 |
5 |
370.10 |
3 |
631.15 |
4 |
6.13 |
6 |
||||||||
|
Shangrila |
1,882.28 |
7 |
199.64 |
7 |
377.19 |
4 |
560.36 |
3 |
5.00 |
3 |
||||||||
|
Average industry |
2,501.02 |
|
285.53 |
|
502.76 |
|
692.30 |
|
5.61 |
|
||||||||
|
Bank |
Operating Expenses |
Rank |
Operating expenses per branch |
Rank |
Write-off |
Rank |
Net Profit After Tax |
Rank |
Distributable Profit |
Rank |
||||||
|
Muktinath |
441.17 |
7 |
2.33 |
2 |
26.39 |
2 |
1279.13 |
1 |
331.84 |
4 |
||||||
|
Garima |
510.70 |
8 |
4.15 |
8 |
- |
8 |
1136.18 |
2 |
597.50 |
1 |
||||||
|
Shine Resunga |
309.14 |
4 |
3.47 |
6 |
18.21 |
4 |
697.45 |
3 |
384.30 |
2 |
||||||
|
Jyoti |
357.78 |
5 |
2.89 |
4 |
0.00 |
7 |
246.50 |
8 |
(405.29) |
8 |
||||||
|
Kamana Sewa |
264.68 |
1 |
1.96 |
1 |
69.99 |
1 |
603.22 |
5 |
357.88 |
3 |
||||||
|
Lumbini |
292.82 |
2 |
3.29 |
5 |
22.68 |
3 |
603.78 |
4 |
260.33 |
5 |
||||||
|
Mahalaxmi |
364.86 |
6 |
3.54 |
7 |
11.37 |
5 |
470.14 |
7 |
177.14 |
7 |
||||||
|
Shangrila |
296.51 |
3 |
2.65 |
3 |
4.17 |
6 |
520.47 |
6 |
177.80 |
6 |
||||||
|
Average industry |
354.71 |
|
3.04 |
|
19.10 |
|
694.61 |
|
235.19 |
|
||||||
Ratios
|
Bank |
DPS |
Rank |
Base Rate |
Rank |
EPS |
Rank |
NPL |
Rank |
Cost of Fund |
Rank |
CAR |
Rank |
CD ratio |
Rank |
||||||||||||||||||
|
Muktinath |
4.71 |
6 |
9.09% |
3 |
18.15 |
3 |
2.26% |
1 |
6.54% |
1 |
12.43% |
7 |
85.83% |
1 |
||||||||||||||||||
|
Garima |
10.52 |
2 |
8.67% |
2 |
20.00 |
1 |
2.89% |
2 |
6.64% |
3 |
14.29% |
2 |
82.72% |
3 |
||||||||||||||||||
|
Shine Resunga |
8.12 |
3 |
8.32% |
1 |
14.73 |
6 |
3.43% |
5 |
6.56% |
2 |
12.64% |
6 |
82.05% |
5 |
||||||||||||||||||
|
Jyoti |
(9.22) |
8 |
9.41% |
8 |
5.61 |
8 |
4.95% |
8 |
6.90% |
5 |
12.39% |
8 |
78.69% |
8 |
||||||||||||||||||
|
Kamana Sewa |
10.91 |
1 |
9.20% |
4 |
18.38 |
2 |
3.21% |
3 |
6.94% |
6 |
12.73% |
5 |
83.28% |
2 |
||||||||||||||||||
|
Lumbini |
7.40 |
4 |
9.40% |
7 |
17.16 |
4 |
3.29% |
4 |
7.59% |
8 |
13.30% |
3 |
82.36% |
4 |
||||||||||||||||||
|
Mahalaxmi |
4.25 |
7 |
9.25% |
6 |
11.27 |
7 |
4.58% |
7 |
7.03% |
7 |
15.01% |
1 |
80.83% |
7 |
||||||||||||||||||
|
Shangrila |
5.18 |
5 |
9.20% |
4 |
15.17 |
5 |
4.08% |
6 |
6.78% |
4 |
12.89% |
4 |
81.62% |
6 |
||||||||||||||||||
|
Average industry |
5.23 |
|
9.07% |
|
15.06 |
|
3.59% |
|
6.87% |
|
13.21% |
|
82.17% |
|
||||||||||||||||||
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