Is Global IME Bank’s Low ROE Masking a Valuation Gap?

What the company is and where the price stands

Global IME Bank Limited (ticker GBIME) is one of Nepal’s 19 commercial banks. As of today the last traded price (LTP) is Rs 253.1, down 0.08 % from the previous close of Rs 253.3. Daily volume was 90,212 shares, while the 20‑day average volume is 279,277 shares.

Valuation (EPS, P/E, P/B, ROE, book value, Graham number)

- EPS: Rs 16.34 – earnings per share.
- P/E: 14.92 – the market is paying about 15 times earnings.
- P/B: 1.33 – price is 1.33 times the book value per share.
- ROE: 9.01 % – return on equity, relatively low for a bank.
- Book value: Rs 183.14 per share – net asset value.
- Graham number: Rs 259.48 – the theoretical safe price from Graham’s formula.

How it compares with its peers

| Metric | Sector median | GBIME | Rank in sector |
|---|---|---|---|
| EPS | 18.01 | 16.34 | 11/19 (below) |
| P/E | 18.87 | 14.92 | 6/19 (better) |
| P/B | 1.41 | 1.33 | 6/19 (better) |
| ROE | 10.42 % | 9.01 % | 15/19 (below) |

Rank 1 is the best (highest EPS/ROE, lowest P/E‑P/B). GBIME’s EPS and ROE sit below the sector median, while its P/E and P/B are more attractive than the median.

Dividends

- Latest FY (2082/2083) dividend: cash Rs 6, bonus 4 % → total 10 %.
- Book close for dividend: 2026‑09‑21.
- Dividend streak: 15 consecutive years of dividend payments.
- Dividend yield: 2.37 % based on the current price.
- 5‑year average cash dividend: Rs 6.52, total average 9.22 %.
- 5‑year average payout: 5 %.

Sector versus NEPSE

- Sector’s position in its 5‑year range vs NEPSE: 45.91 % (the banking sector has been slightly weaker than NEPSE over the last five years).
- 13‑week change vs NEPSE: +9.12 % (outperforming).
- 52‑week change vs NEPSE: +10.67 % (outperforming).
- Weekly correlation with NEPSE: 0.92, 12‑month correlation: 0.92 – the banking index moves very closely with the overall market.

Price trend & who is trading it

- Moving averages: 5‑day MA = 248.78 (Bullish), 20‑day MA = 246.12 (Bullish), 50‑day MA = 247.82 (Bullish).
- 52‑week range: high Rs 270.6, low Rs 218.9.
- Big‑broker pattern (last 20 days): 21.6 % buy concentration, 27.4 % sell concentration. The pattern is labeled “Selling into strength,” meaning brokers are selling as the price rises.
- Top buyers: session 28 (268,222 shares over 8 days), session 17 (114,512 shares over 9 days).
- Top sellers: session 88 (‑355,606 shares), session 43 (‑115,456 shares).
- Persistence: 67 % – broker behavior is fairly consistent.

Risks & what to watch

- Promoter lock‑in: data not available.
- Health score: 65, grade OK – moderate financial health.
- Float: 49 % of shares are free‑float; promoters hold 51.24 %.
- Flag: “Paid a dividend in 5 of the last 5 years” – positive, but the low ROE and the heavy promoter ownership could be concerns.
- Book close vs Graham number: book value Rs 183.14 is well below the Graham number Rs 259.48, suggesting a valuation cushion but also indicating that the market is pricing the stock below the theoretical safe price.

Balanced conclusion

Global IME Bank shows an attractive P/E and P/B relative to its peers, and a solid dividend streak that may appeal to income‑focused investors. However, its EPS and ROE lag the sector median, and the promoter‑public ownership split is heavily weighted toward promoters. The “selling into strength” pattern from big brokers hints at short‑term pressure on the price. Overall, the bank’s valuation looks reasonable, but investors should keep an eye on profitability trends and promoter activity before making a decision.