Choosing the best bank can have a big impact on returns, dependability, and convenience while investing in the Nepalese stock market. As such, investors often wonder which bank is best for share market investments in Nepal.
As more and more Nepalese investors look to get involved, the Nepal Stock Exchange (NEPSE), also known as the nation's stock market, has experienced a steady expansion in recent years.
In order to assist investors in making wise selections, it
is vital to select a bank that can offer trustworthy and accurate research and
advising services. Additionally, investors who wish to effortlessly monitor and
manage their investments might benefit from a bank that provides a
user-friendly and effective trading platform.
The charges and fees levied by the bank can also have a big
effect on how profitable an investment is. Therefore, it is essential to choose
a bank with reasonable costs and competitive rates while choosing the best
bank.
For successful share market investing in Nepal, picking the
correct bank is essential. When choosing a bank for share market investments in
Nepal, it's important to take into account the bank's reputation, level of
research and advisory services, trading platform and technology, costs and
commissions, accessibility and convenience, and fees and commissions.
Importance of Selecting the Best Bank for Share Market Investments in Nepal
Making the appropriate bank choice is essential for
profitable share market investments in Nepal. Your investment returns,
reliability, and convenience may all be impacted by the bank you choose. A
competent bank can offer trustworthy research and consulting services that can
aid investors in making knowledgeable decisions. This is particularly crucial
for the Nepalese stock market, which is underdeveloped and less liquid than
other markets in the area and is relatively tiny in comparison.
A reputable bank should offer a user-friendly and effective
trading platform in addition to research and consulting services. In a volatile
market, this makes it easy for investors to manage and keep an eye on their
money.
For investors who wish to manage their investments on the
go, a bank that offers quick and accessible services, such as mobile or
internet banking, can be advantageous.
The commissions and fees charged by the bank can also have a
significant impact on how profitable an investment is.
Therefore, it is essential to choose a bank with reasonable
costs and competitive rates. Investors may also gain access to IPOs, secondary
market offers, and other investment opportunities through the right bank that
may not be available elsewhere.
In conclusion, choosing the appropriate bank for Nepal's
stock market investing is crucial for accomplishing investment objectives. When
choosing a bank for share market investing in Nepal, investors should take into
account the bank's reputation, level of research and advisory services, trading
platform and technology, fees and commissions, accessibility and convenience,
and other criteria as well.
A Brief Overview of the Nepalese Share Market and its Growth Potential
A rising market, the Nepal Stock Exchange (NEPSE), also
known as the market for Nepalese shares, offers investors opportunities for
long-term capital growth. With more than 260 listed firms and a market value of
over NPR 3.3 trillion, the NEPSE was founded in 1993.
The government's emphasis on infrastructure improvement and
legislative changes designed to improve the business climate have led to
significant recent growth in the Nepalese economy.
Foreign direct investment has increased as a result, and
economic growth is seen in the rise of the Nepalese stock market. The market
capitalization of the NEPSE has grown significantly over the previous ten
years.
Despite the expansion, the Nepal stock market remains small
in comparison to other ones in the region, less developed, and less liquid.
However, the Nepalese government has implemented policies to encourage
investment and improve market liquidity, including cutting transaction costs
and removing restrictions on foreign investment.
Overall, the Nepalese stock market has a lot of room to grow
as it continues to improve its business environment and attract foreign
investments.
With the selection of the best bank and investment strategy,
investors can take advantage of the opportunities provided by the Nepalese
share market and achieve their long-term investment goals.
Factors to Consider While Choosing the Best Bank for Share Market Investments in Nepal
Choosing the appropriate bank is essential for reaching your
objectives when it comes to investing in the Nepalese stock market. When
choosing a bank for share market investments in Nepal, it's important to take
into account the bank's reputation, level of services and technology use, costs
and commissions, accessibility and convenience, and fees and commissions.
Investors who wish to effortlessly monitor and manage their
investments might benefit from a bank that provides a user-friendly and
effective trading platform. The charges and fees levied by the bank can also
have a big effect on how profitable an investment is.
Selecting the appropriate bank for Nepal's stock market
investments is essential for accomplishing investment objectives. The following
General Factors should be considered in selecting best bank for investing.
Reputation and history of the bank
When choosing a bank to invest in Nepal's stock market,
reputation and history are important considerations. Selecting a bank that has
a proven track record of trustworthiness, security, and stability is essential.
Investors should investigate the bank's history, effectiveness, management
team, regulatory compliance, and financial results. Investors can feel
confident and secure in their investments if the bank has a lengthy history in
the Nepalese market and a strong track record. Therefore, it is essential to
consider a bank's reputation and history before making any investment
decisions.
Services and technology
An effective service platform that is easy to use and
navigate should be offered by a good bank to enable investors to conveniently
monitor and manage their money. Use of the latest technology in services
affects the status of banks. In order to assist clients to execute any services
effectively, the bank should take the assistance of technology. Investors
should analyze and research the use of technology and services by bank before
choosing the best bank for investing in Nepal Share Market.
Accessibility and convenience
A smart bank should offer easy-to-use options that allow
customers to manage their investments wherever they are, such mobile or
internet banking. This part also affects the client’s retention and increasing.
Major Factors to Consider to Choose the Best Bank in Share Market Nepal
Obviously, it is not easy to choose best bank to invest in
share market Nepal. However, there are some important indicators or factors
which can help in choosing best bank for investments.
Here are some Major Factors which are essentials to consider
while choosing the best bank for share market in Nepal 2023.
1) Paid Up
Capital
2) Earnings
Per Share (EPS)
3) Price to
Earning (PE) Ratio
4) Book
Value
5) Price to
Book Value (PB) Ratio
6) Return on
Equity (RoE)
Banks in Nepal
There are two types of banks in Nepal which are known as
Commercial Banks and Development Banks. Nepal Rastra Bank is the regularoty
body of all types of banks in Nepal.
Nepal Rastra Bank has classified the bank as A, B, C.
Commercial banks are A class bank whereas the Development Banks B class banks.
All the commercial banks and development banks are listed in
Nepal Stock Market and their shares are traded regularly in Nepal Stock Market.
Commercial Banks in Nepal for Share Market Investments in 2023 and Their Paid-Up Value
1 GBIME Global IME Bank Limited 357,710,600.00
2 NIMB Nepal Investment Mega Bank Limited 341,285,950.00
3 NABIL Nabil Bank Limited 270,569,984.00
4 KBL Kumari Bank Limited 262,258,614.00
5 PRVU Prabhu Bank Limited 235,424,899.00
6 HBL Himalayan Bank Limited 216,566,158.00
7 PCBL Prime Commercial Bank Limited 194,025,757.00
8 NMB NMB Bank Limited 183,667,068.00
9 NBL Nepal Bank Limited 146,940,224.00
10 CZBIL Citizens Bank International Limited 142,009,741.00
11 SBL Siddhartha Bank Limited 140,899,808.00
12 ADBL Agricultural Development Bank Limited 134,516,741.00
13 SANIMA Sanima Bank Limited 124,601,153.00
14 NICA NIC Asia Bank Limited 115,640,054.00
15 LBL Laxmi Bank Limited 115,513,448.00
16 EBL Everest Bank Limited 106,980,940.00
17 MBL Machhapuchchhre Bank Limited 102,571,555.00
18 SBI Nepal SBI Bank Limited 101,206,288.00
19 SRBL Sunrise Bank Limited 101,188,928.00
20 SCB Standard Chartered Bank Nepal Limited 94,294,537.00
Development Banks in Nepal for Share Market Investments in 2023 and Their Paid-Up Value
S.N Symbol Name of Stock Paid
Up
1 MNBBL Muktinath Bikas Bank Limited 64,209,004.00
2 GBBL Garima Bikas Bank Limited 51,876,871.00
3 JBBL Jyoti Bikash Bank Limited 43,957,860.00
4 SHINE Shine Resunga Development Bank Limited 42,838,832.00
5 MLBL Mahalaxmi Bikas Bank Limited 40,108,833.00
6 LBBL Lumbini Bikas Bank Limited 33,828,213.00
7 SADBL Shangrila Development Bank Limited 32,676,003.00
8 KSBBL Kamana Sewa Bikas Bank Limited 31,425,773.00
9 EDBL Excel Development Bank Limited 12,496,945.00
10 MDB Miteri Development Bank Limited 10,150,015.00
11 SAPDBL Saptakoshi Development Bank Limited 8,343,384.00
12 SINDU Sindhu Bikas Bank Limited 5,574,560.00
13 CORBL Corporate Development Bank Limited 5,250,000.00
14 GRDBL Green Development Bank Limited 5,190,000.00
15 KRBL Karnali Development Bank Limited 5,028,300.00
16 NABBC Narayani Development Bank Limited 2,624,676.00
Here in this article, we will cover and talk only about the best commercial banks for the investment in share market in Nepal. It is also targeted to discuss the med term investment which is at least for one and more years.
Which Bank is Best for Share Market in Nepal Based on Paid Up Capital in 2023?
The information related to the factors are updated as of the
2nd quarter report of 2023.
Paid up capital is one of the major resources for any
company to grow it’s business. The company with high paid up capital may have
low risk of business losses because they have the fund for expansion of
different business. Considering the Paid Up capital of each commercial bank,
the following 5 highest paid up capital banks can be the best bank for share
market in Nepal for investments.
1 GBIME Global IME Bank Limited 357,710,600.00
2 NIMB Nepal Investment Mega Bank Limited 341,285,950.00
3 NABIL Nabil Bank Limited 270,569,984.00
4 KBL Kumari Bank Limited 262,258,614.00
5 PRVU Prabhu Bank Limited 235,424,899.00
Sometimes, the highest paid-up capital company may not be
the best for investing because the other factors also matters for investment.
Low paid up capital company can distribute the bonus as the dividend to
increase the paid up capital. It helps to increase the number of shares to
shareholders. Higher number of shares will gain higher benefit for long term
investing.
Which bank is best for share market in Nepal based on EPS in 2023?
Considering the Earning Per Share (EPS) of each commercial
bank, the following 5 highest EPS banks can be the best for share market in
Nepal for investments.
Symbol EPSTTM
NICA 46.67
SCB 31.14
EBL 30.8
NABIL 22.95
MBL 21.21
EPS is the major factor to be considered in choosing the
best bank for investments in the share market Nepal. However, other factors
along with EPS should consider in selecting best bank for investment.
Which bank is best for share market in Nepal based on PE Ratio in 2023?
Price to Earning (PE) Ratio is the other important indicator
that should be considered when choosing the best bank stocks in share market in
Nepal. In general, lower PE Ratio is taken as best. However, the other factors
also matter in selecting best bank in Nepal. The following 5 lowest PE Ratio
banks can be the best for share market in Nepal for investments.
The following 5 lower PE Ratio value banks can be the best
for share market in Nepal for investments.
Symbol PE RatioTTM
SRBL 8.7
MBL 10.1
NMB 10.3
PCBL 10.3
LBL 11
Lowest PE Ratio bank stocks sometimes may not be the best
bank stock for investing in the share market in Nepal because the other factors
are more important in selecting best bank stock.
Which bank is best for share market in Nepal based on Book Value in 2023?
One of the essential fundamental indicators in selecting
best bank stock is Book Value. Definitely the high book value stocks can be
taken as good to choose for investments.
Highest book value is taken as good stock in share market of
Nepal. The following 5 highest book value banks can be the best for share
market in Nepal for investments.
Symbol Book Value
NICA 243.97
NBL 238.02
EBL 221.39
ADBL 206.31
NABIL 199.12
Investing in best banks considering only book value my not
be the good strategy for investing in share market in Nepal. It is also
important to check the other fundamental indicators with book value.
Which bank is best for share market in Nepal based on Price to Book (PB) Value in 2023?
A financial ratio called Price to Book (PB) value is used to
contrast the market value and book value of a company. By dividing the current
market price per share by the book value per share, the PB value is determined.
Investors use PB value to determine if a firm is overpriced
or undervalued in the market, making it a crucial indicator. Investor
expectations for the company's future performance and growth potential are
higher when the PB value is higher.
The PB value is simply one of many financial indicators used
to assess a company's success; it should be used in conjunction with other
indicators and assessed in light of the industry and business model of the
organization. It is important to check the Price to Book value ratio.
Here are the 5 lowest price to book (PB) value banks stocks
that can be the best for share market in Nepal for investments.
Symbol Price to Book Value
SRBL 1.04
NBL 1.07
NIMB 1.11
LBL 1.13
KBL 1.15
Remember that the selection of best bank for investing in
share market in Nepal by looking PB ratio may not be the good strategy. Other
factors should also check with PB Ratio.
Which bank is best for share market in Nepal based on Return on Equity (RoE) in 2023?
Return on Equity (RoE) is a financial ratio that assesses a
company's profitability in relation to the equity of its owners. It displays
the amount of profit a business makes using the capital that its shareholders
have invested. RoE is determined as a percentage by dividing net income by
shareholders' equity.
RoE is significant because it shows how efficiently a
business is turning the capital of its shareholders into profits. A greater RoE
shows that the business is making more money per share of investor capital,
which is generally viewed favorably. To obtain a complete view of a company's
financial performance, RoE should be examined in conjunction with other
financial ratios.
The following 5 highest RoE banks can be the best for share
market in Nepal for investments.
Symbol ROETTM
NICA 21%
SANIMA 18%
SCB 16%
EBL 15%
NMB 15%
Return on equity (RoE) is much important fundamental
indicator in selecting the best bank stock.
Which 3 Banks Are Best For Share Market in Nepal in 2023 Considering All Factors?
Considering the all fundamental indicators and all factors
mentioned above and analyzing the banks, best 3 banks are presented as the best
bank for share market in Nepal in 2023.
1. NIC ASIA Bank
NIC ASIA bank is the best commercial bank in 2023
considering almost all factors and fundamental indicators. It has the highest
EPS in this year.
As of the 2nd quarter report of 2023, NIC ASIA Bank has the
following fundamental indicators.
Market Capitalization 79,791,637,024.85
Paid Up Capital 11,564,005,365.92
52 Weeks High/Low 845/603.1
EPSTTM 46.67 (Book Close Adjusted)
EPSReported 56.61
PERatioTTM 14.79
PBRatio 2.83
ROETTM 21.15
%
Book Value NPR
243.97 (Book Close Adjusted)
2. Everest Bank Limited
Everest Bank (EBL) can be taken as the second best
commercial bank in 2023 considering almost different factors and fundamental
indicators. As of the 2nd quarter report of 2023, it has the third highest EPS.
Based on the 2nd quarter report of 2023, Everest Bank has
the following fundamental indicators.
Market Capitalization 51,543,417,855.60
Paid Up Capital 10,698,094,200.00
52 Weeks High/Low 550/413
EPSTTM 30.80 (Book Close Adjusted)
EPSReported 29.69
PERatioTTM 15.64
PBRatio 2.18
ROETTM 14.71
%
Book Value NPR 221.39 (Book Close Adjusted)
3. Nabil Bank Limited
Nabil Bank can be taken as the other best bank to invest in
share market Nepal in 2023. Nabil Bank was the top best bank stock in 2022 with
highest EPS. As of the 2nd quarter report of 2023, it has the fourth highest
EPS.
Based on the 2nd quarter report of 2023, Nabil Bank has the
following fundamental indicators.
Market Capitalization 156,930,583,557.00
Paid Up Capital 27,056,997,165.00
52 Weeks High/Low 971/580
EPSTTM 22.95
(Book Close Adjusted)
PE RatioTTM 25.27
PB Ratio 2.91
ROETTM 13.56
%
Book Value NPR 199.12 (Book Close Adjusted)
4. Standard Chartered Bank Limited
Standard Chartered Bank Limited (SCB) can be taken as the
other best commercial bank in 2023 considering different factors and
fundamental indicators. As of the 2nd quarter report of 2023, it has the second-highest EPS.
With the 2nd quarter report of 2023, Standard Chartered Bank
has the following fundamental indicators.
Market Capitalization 46,770,090,928.35
Paid Up Capital 9,429,453,816.20
52 Weeks High/Low 546/383.1
EPSTTM 31.14
(Book Close Adjusted)
PE RatioTTM 15.93
PBRatio 2.53
ROETTM 16.30
%
Book Value NPR 195.73 (Book Close Adjusted)
In summary, top 3 best commercial banks which has higher
value of different fundamental factors are presented here.
Symbol Book Value EPSTTM ROETTM PETTM PB
NICA 243.97 46.67 21% 14.9 2.86
EBL 221.39 30.8 15% 15.8 2.2
NABIL 199.12 22.95 14% 25.8 2.97
These are the best banks considering different indicators.
However, you can analyze in your own way and select the best bank stocks for investment.
Reasons why the selected bank is the best option
For investors in Nepal, selecting the finest bank for stock
market investments is a key choice. It becomes evident that there are some
specific reasons why certain banks are the best choice after studying the
numerous criteria and researching the various banks that offer share market
services.
The other major reason to select bank as the best option is
it’s volatility and low risks. All of the commercial banks has nationwide
business. Therefore, banks are low-risk stocks to invest in share market Nepal.
Likewise, commercial bank stocks are performing well in
recent years. There were 26 commercial banks few years ago but now it decreased
to 20 by merging each other.
In conclusion, choosing the appropriate bank for Nepal's
stock market investments is essential for accomplishing investment objectives.
When choosing a bank for share market investing in Nepal, investors should take
into account the bank's reputation, its year-to-year growth consistency,
dividend history etc.
FAQs on Which Bank Is Best in Share Market Nepal
People who have involved in the share market Nepal always
have the following queries in selecting best stocks.
Why is NIC ASIA Bank the best bank in Nepal?
There are many determinants in selecting best bank in Nepal.
In the year 2023, NIC Asia bank is in top in various determinants like EPS,
Book Value, ROE, Year to Year growth etc.
Which is the best bank for share market in Nepal?
The banks that grow year to year, have higher EPS, higher
book value and top in other determinants can be taken as the best bank for
share market in Nepal.
Which is the best bank in Nepal 2023?
NIC Asia Bank Limited, Everest Bank Limited, Nabil Bank
Limited, Standard Chartered Bank Limited are the best banks in 2023 according
to the 2nd quarter report.
Which bank is best in Nepal to invest?
If we look at the different determinants, NIC Asia bank is
the best bank to invest in the year 2023. It does not mean that NIC Asia Bank
will always be the best bank in Nepal to invest. To be the best bank, bank
should have maintained its year to year growth in various fundamental
indicators.
0 Comments
Please do not put any spam links in the comment.