Decoding Class 'A' Banks: Top Performers Across 6 Key Financial Parameters

Currently, there are 20 operating Class 'A' commercial banks in Nepal, out of which 19 are listed on the Nepal Stock Exchange (NEPSE) with state owned Rastriya Banijya Bank Limited (RBBL) remaining unlisted. In this parameters analysis, we evaluate the performance of these commercial banks across six key parameters: public float, Price-to-Earnings (P/E) ratio, Non-Performing Loans (NPL), Earnings Per Share (EPS), Net Worth Per Share, and Distributable Profit Per Share. Beyond examining the top 20 banks within each individual category, we also present the master ranking highlighting the top banks based on their overall performance across all 6 combined metrics.

 Floated Share:

Among NEPSE listed commercial banks, Standard Chartered Bank Limited (SCB) has the lowest floated public shares in the sector at 2,99,15,883 (2.99 crore), with promoters holding 70.21% of the bank leaving the smallest tradable float on the market.

Nepal SBI Bank Limited (SBI) ranks second lowest with 3,35,97,309 (3.35 crore) floated shares, backed by an even higher promoter stake of 70.36%, the highest among the top 3. Everest Bank Limited (EBL) rounds out the top 3 with 5,59,42,050 (5.59 crore) floated shares and a comparatively lower promoter holding of 59.23%.

Notably, both SCB and SBI carry 70% promoter ownership, well above the typical 51% regulatory floor seen across most other banks in the list, which structurally limits their public float regardless of company size.

Ranked as per the Lowest Floated Share:

Price to Earning:

Kumari Bank Limited (KBL) has the lowest P/E ratio at 7.65x, indicating the lowest valuation relative to its earnings among the banks shown. Nepal Bank Limited (NBL) ranks second at 9.04x, while Prime Commercial Bank Limited (PCBL) ranks third at 12.28x. The negative P/E of Prabhu Bank is excluded because its negative earnings make the ratio unsuitable for conventional valuation comparison.

^{Note: PE ratio is calculated usiing 21 August, 20026 (Friday's) Last Traded Price (LTP) of the each stock.} 

Non Performing Loan: 

Everest Bank Limited (EBL) ranks first with the lowest NPL ratio of 0.49%, indicating the strongest loan asset quality among the commercial banks in the table. Standard Chartered Bank Nepal Limited (SCB) follows at 2.03%, while Sanima Bank Limited (SANIMA) ranks third at 2.87%. Lower NPL generally indicates better credit quality and lower exposure to non-performing loans.

Earning Per Share:

Everest Bank Limited (EBL) leads the commercial banking sector in profitability with an Earnings Per Share (EPS) of Rs. 36.95, outperforming its closest competitor by more than 20%. Nepal Bank Limited (NBL) and Rastriya Banijya Bank Limited (RBBL) follow closely in second and third place, posting robust EPS figures of Rs. 30.63 and Rs. 29.14, respectively.

Net Worth Per Share:

Rastriya Banijya Bank Limited (RBBL) leads the sector with an outstanding Net Worth Per Share of Rs. 358.68, establishing a significant capital buffer over its competitors (However RBBL is not listed in NEPSE). Nepal Bank Limited (NBL) claims the second spot with a strong net worth of Rs. 287.70 per share, while Everest Bank Limited (EBL) rounds out the top three at Rs. 256.47 per share. 

Distributable Profit Per Share:

Everest Bank Limited (EBL) maintains a dominant top position in direct shareholder returns with a Distributable Profit Per Share of Rs. 38.32, outperforming its closest competitor by more than 46%. Siddhartha Bank Limited (SBL) holds the second spot with Rs. 26.15 per share, followed by Sanima Bank Limited (SANIMA) in third at Rs. 20.85 per share.

Overall Rank:

Based on the comprehensive composite evaluation across all six key parameters floated shares, P/E ratio, NPL, EPS, Net Worth Per Share, and Distributable Profit Per Share, Everest Bank Limited (EBL) secures the top overall ranking in the commercial banking sector, anchored by its sector leading profitability and superior risk management. Nepal Bank Limited (NBL) claims second place with an exceptional fundamental data, while Sanima Bank Limited (SANIMA) earns third place due to its strong unencumbered earning potential and overall fundamental consistency. Rounding out the elite top five, Standard Chartered Bank Nepal Limited (SCB) and Siddhartha Bank Limited (SBL) capture fourth and fifth positions respectively, driven by robust risk adjusted returns and strong distributable profit capabilities compared to lower ranked system peers.

 Note: We ranked the banks by assigning 20 points to the top-ranked company based on each 6 parameters, 19 to the second, and so on, down to 1 point. The points from all six parameters were then summed to calculate each bank’s overall score and final ranking.