Everest Bank Limited has received an in-principal approval from the central bank of Nepal to open its first international branch in New Delhi. The expansion of branch was made possible according to NRB's provision on monetary policy to let banks to open international branches.
Earlier, the BOD of bank has recommended 30 per cent bonus shares and 30 per cent cash dividend subject to permission from Nepal Rastra Bank and AGM. The bank increased its net profit by 37 percent in comparison to the preceding year to Rs 638.7 million and its deposits also increased by 31 per cent and advances by 30 per cent during the financial year 2008-09. The NPA of the bank is at 0.48.
What future prospects do we see from opening branches abroad?
1- Definitely there is going to be higher risk so outcome is either higher gain or higher loss.
2- Which sectors in India can a foreign bank do? Limitations?
3- Can any individual invest through this bank in Indian share market?
4- Is it right time to buy shares of EBL then?
Expecting comments from general public as well as CEOs, CFOs, COOs of these companies.
3 comments:
definitely investors will get profit from opening a branch abroad specially nebouring country India.
Capital is necessary. Nepalese have advantage of buying land and real estate in India so definitely this is the best time.
But if EBL gets a way that nepalis get to invest in indian share market then definitely this will create lots of opportunities and EBL will be a pioneer in the banking sector.
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