Know Your bank-IV

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.

8. 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

12. 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

18. 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

Development Bank
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

Finance Companies
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

Lord Buddha Financial Institutions Ltd (November 19, 2006)
Chairman: Bharat Kumar Shrestha
CEO: Prakash Kumar Shrestha
Paid up capital: Rs 7,50,00,000
Core capital: over Rs 3 million
Net Profit: Rs 3.6 million
NPA: N/A
Networth: Rs 105
Earning Per Share: Rs 5
Price Earning Ratio (P/E): 5
Branches: 0
ATMs: 0

Kuber Merchant Bittiya Sanstha Ltd (March 24, 2006)
Chairman: Siddhi Man Basnet
GM: Gopal Ghimire
Paid up capital: Rs 50 million
Core capital: Rs 54.8 million
Net profit (2007-08): Rs 5.2 million
NPA: N/A
Networth: Rs 179
Earning Per Share: Rs 19
Price Earning Ratio (P/E): N/A
Number of branches: 0
Number of ATMs: 0