Commercial Banks EPS and CD ratio in the Q3 of current fiscal year (in tabular format)

ShareSansar, July 6:

In terms of Earning per share (EPS) of Commercial Banks in third quarter, out of the 30 commercial banks, only 4 banks have EPS more than Rs 50. Earning per share generally show the performance of the company as per the investment made by the investors/ shareholders of the company.  Higher the EPS higher will be the performance of the company, in terms of the investor’s point of view.

Everest Bank Limited has the highest annualized EPS in the third quarter of the current fiscal year which stood at NPR 74.48; whereas Grand Bank Limited had the lowest annualized EPS figure of negative NPR 2. 15.

According to NRB directives, Credit to Deposit (CD) ratio more than 80% is riskier, the banks has to maintain balance in CD ratio up to 80%. There is only Grand Bank which has a CD ratio of 99.39 percent which is the highest out of all 30 commercial banks. Agriculture Development Bank’s credit to deposit ratio stands at 79.82 percent, Kumari Bank’s at 79.63 percent, Everest at 79.17 percent and Himalayan at 79.12 percent.

What is Earning Per Share (EPS)?

Earnings per share are conceptually the earnings of the company divided by the number of shares outstanding. It allows us to compare different companies’ power to make profit per share.

What is Credit to Deposit Ratio (CD ratio)?

CD ratio is the ratio of how much a bank lends out of the deposits it has mobilized. It indicates how much of a bank's core funds are being used for lending, the main banking activity. A higher ratio indicates more reliance on deposits for lending and vice-versa

If the ratio is too high, it means that banks might not have enough liquidity to cover any unforeseen fund requirements; if the ratio is too low, banks may not be earning as much as they could be.