Sunday, January 3, 2010


SECTOR                        -  BANKS,FINANCE & INSURANCE

SECTOR  P.E.               -  10.30 

BANK'S  P.E. RATIO  -  4.4

SHARE PRICE             -  Rs 201.50

ASI                                 -  3292.76

27/12/2009 - Last week we saw  several large parcels of NDB bank changing hands once again @ Rs 200 *1,000,000 & @ Rs 205 *564,700. NDB bank is one of Sri lanka's top developments banks in the past & now doing commercial banking activities as well with a branch network of 40.

Nine months profitability as at 30/09/2009 saw a significant growth of 50% (Group) YOY . Nine months profits were Rs 1.6 b.n. as against a profit of Rs 1.06 b.n. in year 2008

Earning per share is Rs 23.96 as at 30/09/2009 & Book value per share is Rs 167.58.

NDB bank has  one of the best loan books in our country which consists of low Non Performing Facilities & is the one of best capitalized banks in the country. Capital  adequacy ratio is around 20% which is well above minimum standards.

 They have significant stakes in CDIC & Eagle insurance company. Further we can expect profits from banks overseas business arm in Bangladesh in future as well.

NDB bank paid a high dividend for its share holders in the past.  This time also we can expect a better dividend from the bank,which is due withing the first quarter of year 2010.

Since the market is trading at  peak levels in its history, we would like to advise the investors to collect the share in small blocks,especially in the event of any price drop of the share in future.

Recommend - Buy