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The fourth quarter report shows the distributable profits of 3 billion. When divided by 9.80 crore units, EPS stands Rs. 30. After mandatory adjustment of some 24% (20% to reserves, 3% HRD and 1% CSR), distributable profit stands at 23.26 per share.

So, expect no more than 21% including tax. The curiosity is in what combination it will do so.
High probability is for whole cash, as it's got enough paid up.

नेपाल बैंकको जगेडा कोषबाट अर्बौ रुपैयाँ कता हरायो ?
उल्लेखित ३ महिनाको अवधिमा बैंकले पौने २ करोड कित्ताभन्दा बढी एफपिओ बिक्री गरेर साढे तीन अर्ब बढी प्रिमियम पनि संकलन गरेको छ । उक्त रकम समेत जोडिँदा बैंकको जगेडा कोषमा किन अस्वभाविक गिरावट आयो भन्ने उत्सुकता बढेको छ ।

सोझो शैलीमा बुझ्दा नेपाल बैंकले एफपिओ बेचेर आर्जन गरेको प्रिमियम समेत जोड्ने हो भने तीन महिनाको अवधिमा जगेडा कोषको आकार झण्डै ९ अर्ब रुपैयाँले घटेको देखिन्छ ।
http://merolagani.com/NewsDetail.aspx?newsID=44391

Something FISHY going on.
Difficult to trust these SARKARI JHOLE companies.

As per the circular no Ba.Bi.Ni.Bi/Bi.R.1/NBL/16/068/69 dated 2068/07/30 from Nepal Rastra Bank, NEPAL BANK has been debiting all the incomes from sales of its assets since many years in this account. However major was CIT shares.

This is free reserves while computing in capital adequacy ratio.

This means 1.19 arab (must have increased by few more crores in 74/75) is available as distribution of dividend.
Also profit remaining (Over 85 crores) after neutralizing accumulated loss to zero is also available as distribution of dividend.
Also there is few crores ins hare premium account without computing FPO Premium as (FPO premium shall be computed in 75/76)

How much dividend can come?
Almost 20% seems potential.
But in what ratio shall bonus and cash be mixed.
Lets See

Also seems to be most undervalued.

.....Baki Ishwor Ko LEELA...

Among Bank i am bullish of 3 stocks which will outperform NEPSE for Sure.

1. PRVU
2. NBL
3. NICA


I won't be surprised NBL declaring Good Bonus + Dividend as they have strong Reserve & Surplus.

Hope what Punj bhairav ji has said will Happen !!

Happy Investment !!

NEPAL BANK distributable profit will be between 270 crore to 300 crore.

Distributable profit will be between 18 to 22%

Bonus Share + Cash will come

....Baki Ishwor Ko LEELA....

Yes it was not fully subscribed but on the last day its subscription level rose compare to others days. Well Big daddies infused just small amount in it collectively to the tune of 20 cr. only As currently their money are parked in Call and Money Market Instruments in Banks with certain lock in Period !!

As they are waiting for the the Magic figure of 1000/-

Once that level is achieved and consolidation happens in Market then we can see they entering into the Market again !!

Well last hour call to apply for NBL FPO was the Retail clients !! For Big daddies i do not need to Post in forum !!

CIT pumped in 1 billion is not a joke !! its considerably big amount looking at the Market conditions :--

deepak encourages to apply for NBL shares. It was not fully subscribed.

Hence, even big daddies's pocket is empty.

OR

Even big daddies's dont trust deepak's ji advice.

Some of the Smart Money has chipped in the Money in NBL FPO on the last Day !! but still it was not fully absorbed by the Market which indicates that Market no more left with fresh equity to Invest in the Market, same old Money is rolling in the Market.

NBL ले fourth quarter को Basel lll report किन सार्वजनिक रुपमा प्रकाशित नगरेको हो बुझ्न सकिएन ।
http://cms.nepalbank.com.np/Uploads/Files/Post%20Files/Basel_Ashad2075_20180724042230.pdf

Applied. Sakina 40 minute baki huda. I take deepak jis word for this.

Well Well well !!
Smart Money will go to NBL FPO for sure !! Foolish Money will keep on thinking what to do what not to do !! I recommend applying for NBL FPO and even purchase from Secondary Market too !!

Use 50% to purchase from open market and 50% through FPO Route !!

I Give Thumbs UP for NBL FPO 5/5 rating for NBL FPO.

FPO ma 280 ma sell nabhayeko awastha, but market ma 285 ma buyer cha. Is that called chalkhel???

For the First Time In History
1 - NBL have published 4th quarter report SO SO SO FAST (Within 1st week of Shrawan)
2 - Great Undervalued Bank

Note
1 - EPS immediately after FPO is 32
2 - After FPO amount is put to business, EPS will easily reach 40 again

For this F/Y (2074/75)
1 - Reserve is above 1.3 (After 20% to statutory reserve)
2 - Can Give only 10% bonus shares or cash, maximum

.....Baki Ishwor Ko Leela...

Very insightful thread on Nepal Bank. I am extremely keen to add few more kittas of NBL in my portfolio but I haven't been able to decide whether it's right time to buy. Also, is NBL a good buy for short term ? Please put forth your opinion. Thanks.

REPLY TO PB ji,

1 - EPS 42 & FPO Price is 280 and hence P/E is 6.6.

After FPO, Capital will go up so EPS will decrease to arround Rs. 30/- (sustainable basis) and hence PE will be 9 to 10 times.

2 - Book Value is over 350 if revalued.

Book value without revaluation of assets will be 200/-. Approx. 10 Arab of capital and reserve each. Paying price for book value revaluation (for government owned bank) isn't fair because loan book can go bad anytime with any decision of Government. In India, Government banks are available far below book value because people don't trust the numbers in their books.

3 - Business valuation is over 420 without goodwill.

I am trying to learn valuation so the number has gone above my head. Sorry.

....Plus as bonus is coming...If this entire lot is given to CIT or EPF or big business group - they will happily buy all the shares at 280.....This is completely risk free....

Why Bonus is needed, it will be of no use. Instead cash should be paid so as to maintain EPS. Business growth is quite slow. With 20 Arab of capital and reserve, I think it is enough for this bank for coming 5 years.

EQUITY is a RISKY asset so I don't think it is completely risk free. At lower price RISK/ REWARD ratio is better.

नेपाल बैंक FPO

प्रति कित्ता दर : २८०

जम्मा शेयर कित्ता : १ करोड ७६ लाख ......

अनुमानित आबदेक : १ लाख ५० हजार

प्रति आवेदक प्राप्त गर्न सक्ने शेयर न्यूनतम कित्ता : ११७

You can not compare FPO price of NBL and BPCL. The valuation look attractive for NBL @280/-
As underwriter bit cautious due to BPCL FPO. I recommend applying for FPO and even purchase from secondary market at 280/-. Big daddies will be applying for the FPO looking at the subcription level. And will be also picking up from the secondary market too.
I agree to PB ideas on NBL. It's a must apply in FPO there won't be any regreat if you apply for NBL FPO. Even MF will be interested in picking up the stakes in NBL.

Well I feel underwriter are not scared but I feel they will hit a jackpot if it gets underscribed by participants.

Happy Investment !!

PB ji,
if it was so, then why the REGISTRARs get afraid of 310 level and reduce the price to 280?
Even dumb can understand this fact. Now heavy sell off pull the price down and investment on this script will be more risky.
Banki hajurko ichha!!!

DUBOSIJEE

1 - EPS 42 & FPO Price is 280 and hence P/E is 6.6.
2 - Book Value is over 350 if revalued.
3 - Business valuation is over 420 without goodwill.

....Plus as bonus is coming...If this entire lot is given to CIT or EPF or big business group - they will happily buy all the shares at 280.....This is completely risk free....

Few weeks back price of NBL fall upto 285. Remembering the scenario of BPCL FPO scam, isn't it risky to invest in upcoming FPOs whose price is near to market price?

FPO prolly coming on 280.......
Banks contention of 300-310 rejected by underwriters....
Shares shall be fully absorbed....
Shares shall be largely accumulated by silent IPO Investors who invest in IPO but not in secondary market..
Good Bonus within this year to bring smile to the existing pissed off shareholders......

.......Baki Ishwor Ko Leela....

FPO Price - Between 305 to 315 (Most Likely 307)

Bonus Shares- Within This Fiscal Year (Atleast 20%-25% This Year)

Next Year - Dividend around 25% after Bonus Shares

........Baki Ishwor Ko Leela.......

Chulejee

Little Commonsense
1 - You are investor
2 - Its your money that creates the company i.e bank
3 - And the company has top peoples in each department including legal department
4 - There is CEO
5 - There is Board
6 - When its a government company - the compliance is more strict as MOF government representative cannot compromise on legal issues
7 - All these people have already analysed word-by-word existing laws

How decision is made?
1 - Legal department and lawyers there in prepares the draft
2 - Management committee reviews the draft and finalizes it
3 - CEO reviews it multiple times
4 - CEO presents the agends to board
5 - Board questions everything, see the acts
6 - When everything is in line
7 - Decision is made

Note
1 - In some cases, especially in government institutions and even in private sectors, a delegation goes to SEBON and asks them if they can issue the Rights or FPO. When they say yes. They than take formal decision on Board. Basically the CEO and Board members have sufficient networks to confirm everything from the authorities itself..


.....ALL THESE ARE REAL LIFE SITUATIONS ABOUT DECISION MAKING IN BIG & GENUINE & GOOD CORPORATE GOVERNANCE LISTED COMPANIES.....

................Baki Ishwor Ko Leela...........

Section 14
Sub-section 2 ka "५ बर्षमा तीन बर्ष खुद मुनाफामा संचालन भएको हुनु पर्ने "

यो प्रोभिजन मिट गर्छ नेपाल बैंकले
नेट प्रोफिट कमाको दुई बर्ष मात्र भा होइन यसको ??

I wonder how NBL is eligible for fpo.
However, it WILL distribute bonus this time, with or without FPO.