Why Banks Are Different

Reading a bank is its own skill.

NEPSE is heavy with banks and financial institutions, and they don't read like ordinary companies. A bank's 'product' is money: it takes deposits (a liability) and makes loans (an asset), earning the difference. So debt-heavy balance sheets are normal, and special ratios apply. For banks, focus on the ratios in this section (net interest margin, CASA, NPL, capital adequacy, and cost-to-income) alongside the usual P/B and ROE.

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: Banks.