Forum

पूजीभैरव sounds very convincing. However i am still confused if NBL is meant for long term investment or for short term trading? Despite strong fundamentals, i have friends who love NBL only for short term trading purpose. Nevertheless i wish to add this in my portfolio in the days to come. although i regret for missing the 300 mark

SECTION 29 (3) The company may use the moneys in the account as referred to in Sub-section (2) - I.E THE AMOUNT COLLECTED AS SHARE PREMIUM CAN BE USED in the following acts:
(a) Paying up unissued share capital to be issued to the shareholders as fully paid bonus shares,
(b) Providing for the premium payable on redemption of any redeemable preference shares,
(c) Writing off the preliminary expenses made by the company,
(d) Bearing or reimbursing the expenses of, or the commission paid or discount allowed on, any issue of shares of the company.


....YES THE SHARE PREMIUM COLLECTED WILL COME AS BONUS SHARES.........AS CLAUSE B,C,D IS NOT POSSIBLE.........

....THAT IS WHY THEY ARE BUYING....IT CHEAPEST, ITS STRONGEST AND IT HAS GREAT DECLARATIONS IN FUTURE........THEY KNOW IT....

....RESEARCH, ANALYSE & INVEST.....BAKI ISHWOR KO LEELA....

if NBL is allowed to issue FPO they must give Bonus.

FPO
1- All will get less kittas
2- Majority would not sell this share but rather hold or add more of it
3- By the time of listing of shares, NBL profit wud have soared high with strong reserves and surplus
4- Declaration is within this caelendar year

BUYERS - Who wants this big bulks of this share in their portfolio?
1- CIT & EPF
2 - Insurances
3- Pension Funds
4 - Corporate Reserves
5 - Long term investors

IS IT WORTH BUYING NOW?
1 - EPS which is 42 is To cross 47 in coming year
2 - Earns (EPS)47/360(Current Price) = 13% return the investment would earn
3 - Price appreciation is another benefit
4 - Theoritically Either NBL will reach NIB level or NIB will come to NBL Level, as both offers same quantam of dividend in future. Hence selling expensive shares like NIB & NABIL & investing in NBL offers greater monetary benefit.


....Perhaps Its right time to buy now...I said it was right time to buy when its price was around 320.....And still its right time to buy considering its financial progress.....Research, Analyze, Invest.....Baki Ishwor Ko Leela...

Is it the right time to go for Nepal Bank
or it will be better to go after FPO ??
What do you people think
My opinion ........ after FPO (Price would be adjusted)

Didnt know about the ammendment,
thanks pujibhairab for updating

प्रेमियममा एफपियो ल्याउन तीन बर्ष लगातार प्रोफित कमाको हुनुपर्छ होइन र ??
नेपाल बैकले नाफा कमाउन थालया तीन बर्ष भयो र ??

Nepal Bank's Bonus is further confirmed by FPO issue....Will win Investment Bank & NABIL Within Another 6/9 Months (Have already won on profit and net asset parameterS - will win in all remaining parameter now).....Two Government Owned Banks (RBB & NBL) to become most powerful commercial banks of Nepal....

NBL as it is still cheap and dividend to come from this fiscal year, will be top priority of
1 - Pension Funds
2 - Mutual Funds
3 - Investment Funds
4 - Reserves of Corporates
5 - Insurance Funds

.....Research, Analyze, Invest....Baki Ishwor Ko Leela...

We always admire your logical answers Puji Bhairav Sir thanks once again ,along with NBL bonus hopefully NEPSE crosses the 1550 barrier in the coming days

Nepal Bank

1 - It has 2.03 Arab Accumulated Loss in last fiscal year and this years 9 months profit is 2.50 Arab, means the accumulated loss is WIPED OUT and there is surplus of 47 crore.

2 - Further during the period of Baisakh to Asar (Last Quarter) there will be MINIMUM (This is least amount) of profit of 81 crore. Hence there will be total surplus of 1 arab 28 crore (47 Crore + 81 Crore)...

3 - It has share premium of 13 crores which can be used for only few purposes according to companies act out of which distribution of bonus share is one of the purpose. Adding this premium it has surplus of 141 crore. (128 Crore + 13 Crore).

Conclusion
There is no legal hurdle which prevents Nepal Bank From distribution of Bonus Share/Dividend.
There is enough surplus which can be distributed as bonus share or cash dividend.
It is highly probable that some declarations will come this year as Finance Ministry has given direction to issue dividends to public enterprises...
Some bonus shares (to exhaust the share premium account ) and good cash dividend is highly possible.


.....Research, Analyze & Invest.....Baki Ishwor Ko Leela.....

I also heard the similar view a few days back.

I herd some rumors that Nepal bank will not distribute any bonus this year ! How true is this guys ?