Share market experts predict robust growth for Prabhu

Priyanka Jha

ShareSansar, February 24:

Prabhu Bank Limited (PRVU), the youngest commercial bank of Nepal, was formed after a merger between four entities, namely, Kist Bank Limited, Prabhu Bikas Bank Limited, Gaurishankar Development Bank Limited and Zenith Finance Limited.

The shares of Prabhu Bank Limited (PRVU) were listed for trading on Nepal Stock Exchange on Jan 4, 2015. Its adjusted price of the new entity after the merger was Rs 207. Prabhu Bank’s last traded price as on 23rd Feb, 2015 is Rs 330, a 59.42% rise on the adjusted price after the merger process.


It now falls among the companies with highest turnover.

Broker No. 16, Mr. Anuj Kumar Agrawal of Primo Securities said Prabhu Bank’s sound Q2 report and reasonably priced shares has led to the rise in the demand for their shares.

Prabhu Bank Limited (PRVU) stated that it earned Rs 54.02 crore at the end of second quarter of the fiscal year 2070/71. The bank’s net interest income has increased to Rs 69.13 crore from Rs 35.54 crore as compared to the corresponding quarter which is a growth of 94.52 percent.

Broker No. 28 Mr Nand Kishor Mundhara, who owns Shri Krishna Securities, said that Prabhu Bank is in the hands of a reputed group and it is expected to do well in the future.

Prabhu has an aggressive history of merger and acquisition.

Starting out as a money transfer business, Prabhu upgraded to a development bank status following a merger with Prabhu Finance, Samridhdhi Bikas Bank and Baibhav Bikas Bank. Later, Prabhu Bikas Bank elevated to the status commercial bank after merging with Kist Bank Limited, Gaurishankar Development Bank Limited and Zenith Finance Limited.  

According to chairman of Nepal Investor Forum Mr. Raj Kumar Timilsina, Prabhu Bank is making an aggressive recovery and their balance sheet is expected to look better pretty soon.