NBL scrip surges further as it plans to sell two plots of land in Lalitpur

ShareSansar, June 24:

Once again Nepal Bank Limited (NBL) had the highest turnover at the stock exchange yesterday, which amounted to Rs 2.22 crore fuelled by the news that the oldest and probably the biggest asset-based bank in the country is planning to sell more of its property to inject in the system.

NBL scrip was traded for Rs 360 yesterday.

Little wonder NBL has today published a notice to call bids to sell two of its primary non-banking assets at ward number 5 of Lalitpur --  a plot of 13 anas and another plot of one ropani, three ana, and 3 paisa.

NBL has asked the bidders , individuals or institutions, to submit the bids within 21 days.

The minimum rate fixed for the plot of 13 anas of land in the urban Lalitpur is Rs 33.41 lakh and Rs 53.01 lakh for the bigger plot.

NBL plans to open the bids on the 22nd day from today.

On June 18, too, NBL scrip had posted the highest turnover at NEPSE of Rs 4.05 crore, and its scrip had also gained Rs 13 to close at Rs 357 – one of the highest gains made by the scrip after a long hiatus.

The surge was basically triggered by the news that the Insurance Board is buying a plot of land of the oldest bank in the country for a cool Rs 50 crore.

The regulatory body of the insurance companies has reportedly bought 9 ropanis and 14 annas of land of the asset-based bank at Kupandole yesterday to build the Insurance Academy there.

Share investors had been expecting NBL to sell a plot of land to reduce loss, which would eventually reflect in its balance sheet as ‘sell of asset’ and increase the profitability of the bank.

NBL is probably the biggest asset-based company listed at the stock exchange, which gives it a massive cushioning against the existing as well as any possible losses in future.

It may be noted that around half its old staff are retiring in the next few months, which alone will result in more than Rs 1 arba in profit a year.

Those who keep a close tab on the market believe that these are some of the reasons NBL scrip is undervalued and will continue to rise in days to come.

Moreover, the bank is also faring much better over the recent months.

Nepal Bank Limited, the oldest bank in the country, has reported a massive profit rise of 54.34 percent in the third quarter of the current fiscal year 2070/71.

According to NBL’s unaudited financial statement for the third quarter, its net profit has risen from Rs 24.88 crore in the corresponding quarter of the last fiscal year to Rs 38.40 crore by the end of the second quarter.

NBL had reported 572 percent growth in the second quarter.

The profit in the third quarter was largely propelled Rs 20.74 crore it was able to write back even as its core business has also improved a bit.