Infotaining Nepal since 2001

Microfinance vs commercial banks, what do you suggest for long term hold??

So I’ve recently entered the secondary market and decided to buy commercial banks because of low risk, as i now understand that banks need a long time to show some good profit. Now I’m in dilemma whether i should go for more banks or Microfinance. I got enough to divide in few banks or 2 good micros. Did some of my own research but i don’t feel very confident about it. :O

r/NepalStock by Snoo_87561

  1. sirnelson13 says


    Banks to go for: NABIL, GBIME, PCBL, PRVU, NICA, NBL, SBL, SANIMA.

    Microfinance to go for: CBBL, NMFBS, FOWAD, DDBL, NUBL.

    Microfinance has risky business model and they are not well established like commercial banks. But they will give more reward/returns in short period of time when it catches the trend but in current scenario if you want to enter you should think for midterm rather than short term gain.

    On the other hand Commercial Banks are well established and now their job is to be profitable by doing business only. So to be safe and make strong portfolio you need to have banks investing at least 30% of your capital on banks with strong fundamentals and aggressive performance.

    And for long-term hold i will buy banks any day.

  2. LoanSad5133 says

    commercial banks are here to stay, cant say that about micro finances

    micro= high risk high reward

    banks = low risk low reward for short term

    long term ma both have high rewards but banks have low risk in my opinion

Leave A Reply

Your email address will not be published.