I’ve been analyzing KBL recently. It has a decent number of customer deposits, reserves, profits, and very less borrowings but after merging with NCCB its NPL(non-performing loans) spiked up to 3.97% which eventually decreased its net profit in Q3.
Here’s my theory: if KBL can effectively lower its non-performing loans and focus on growth from now on, it has the potential to generate substantial profits in the future. It’s close to the book value and I think it’s undervalued at its current trading price. I am inclined to think it could be a good buy opportunity.
I would appreciate hearing your thoughts on this matter. Let’s discuss it! 💬
View on r/NepalStock by Thisiskshitiz
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