Himalayan News Service

Kathmandu, November 15

Of late, the central bank has been more vigilant in monitoring financial institutions. It has directed them to maintain Capital Adequacy Ratio (CAR) every month, unlike the previous three-month stipulation. Nepal Rastra Bank (NRB) has introduced Prompt Corrective Action (PCA) - a new directive effective from October 17 - if financial institutions do not maintain minimum CAR which is an indicator of financial capital strength.

After a new directives from the NRB that a micro credit institution (Class D financial institution) can also be upgraded to Class A, commercial bank the financial institutions may become more competent. Still the rising number of financial institutions worry experts. Let’s take a look at the books of the remaining commercial banks and other financial institutions by the end of last fiscal year.

• Nepal Bangladesh Bank Ltd (June 6, 1994)

(Management under Nepal Rastra Bank)

CEO: Basudev Ram Joshi

Paid up capital: Rs 744.10 million

Core capital: N/A

Net Profit: Rs 800.4 million

NPA: N/A

Networth: Negative

Earning Per Share: Rs. 107.57

Price Earning Ratio (P/E): 9.31 times

Branches: 17

ATMs: 4

• Lumbini Bank Ltd (July 17, 1998)

Chairman: Prakash Shrestha

CEO: Shovan Dev Pant

Paid up capital: Rs 995.71 million

Core capital: Rs 287.55 million

Net Profit: Rs 327.65 million

NPA: 14.92 per cent

Networth: Rs 293.69 million

Earning Per Share: Rs 32.91

Price earning Ratio (P/E): 19.18

Branches: 5 Branches

(Durbar Marg, Narayanghat, Butwal, Biratnagar, Hetauda)

ATMs: 0

• Agriculture Development Bank Ltd (January 21, 1968)

Chairman: Mukund Prasad Aryal

GM: Yogeshwor Pant

Paid up capital: Rs 207,15,00,000

Core capital: Rs 5,99,42,18,000

Net Profit: Rs 1,61,8180,000

NPA: 10.40 per cent

Networth: Rs 6,14,07,71,000

Earning Per Share: Rs 77.89

Price Earning Ratio (P/E): N/A

Branches: 241

ATMs: 0

• Ace Development Bank Ltd (November 21, 1994)

Chairman: Yogendra Shakya

CEO: Siddhant Raj Pandey

Paid up capital: Rs 416

million

Core capital: Rs 503.19

million

Net profit: Rs 53.90 million

NPA: 0.46 per cent

Networth: Rs 112

Earning Per Share: Rs 12.96

Price earning Ratio (P/E):

96 times

Number of branches: 3

Number of ATMs: 1

• United Finance Ltd

(February 22, 1993)

Chairman: Basant Kumar Chaudhary

AGM: Naresh Singh Bohara

Paid up capital: Rs 149.75 million

Core capital: Rs 1842 million

Net profit: Rs 25.8 million

NPA: 0.81per cent

Networth: Rs 17450 million

Earning Per Share: Rs 34.35

Price Earning Ratio

(P/E): 27.22

Number of branches: 0

Number of ATMs: 0