Click here to read part II of the series.
Click here to read part I of the series.
Investment risk of BOKL:
The bank has been operating in the banking industry with intense competition. Any potential investor should take several types of risks into account before investing. The major risks include technological risk, share market fluctuation risk, foreign exchange risk, regulatory risk, globalization risk, political risk, economic risk, operational risk, cost overrun risk and natural calamities risk. The capital gains of banking sector is also low comparative to the other sectors due to the low stock prices, however, the sector is also known for steady and consistent income in the stock market.
Exposure of BOKL:
Bank of Kathmandu Limited has been operating successfully since last 22 years (1995 to 2017 AD). The team, therefore, constitutes of professional expertise and proven track records and is believed to achieve more for the future of BOKL. The following are the personnel who are successfully running the bank:
The bank has an exposure of 65 branch offices and one head office located at Kamaladi, Kathmandu.
How much should a prospective investor invest?
Prospective investors who are considering investing in the upcoming auction of Bank of Kathmandu Limited can expect to generate decent yield on their investment. However, striking capital yield may not be expected because of the depressed stock prices of banking sector. Therefore, considering the net worth per share of BOKL of NRs 159 as a benchmark (as per the unaudited financial report of FY 2073/74), approximately, NRs 160 would be the ideal rate for the prospective investors to bid in the upcoming auction.
In order to know the eligibility criteria and documents required for the investment in auction, please refer the following link:
http://www.sharesansar.com/c/who-are-ineligible-to-apply-for-auction-shares-of-bank-of-kathmandu-including-documents-required-while-submitting-an-application.html
(Disclaimer: Any kind of information that is provided in the series (I, II, III) presentation should not be used as a sole advice or recommendation by investors in order to design their investment portfolio. So, before taking steps for any kind of the information, the investors are required to base their judgement on their own financial analysis, appropriateness of the information and seek independent financial advice. The information of the company has been taken from the authorized sources such as website of the company, NEPSE and financial reports of the company so, any changes not updated in these may differ in the analysis.)
