PROFITABILITY RATIO ANALYSIS OF NABIL

BANK LIMITED

A Project Work Report

By

Abhishek shah

TU Regd. No: 7-2-444-63-2016

Symbol No: 4440001

Modern Nepal College

Submitted to

The Faculty of Management

Tribhuvan University

Kathmandu

In Partial Fulfillment of the Requirements for the

DEGREE OF BACHELOR OF BUSINESS STUDIES (BBS)

Naya Baneshwor, Kathmandu

May ,2020
 DECLARATION

I hereby declare that the project work entitled PROFITABILITY RATIO ANALYSIS OF
NABIL BANK LIMITED submitted to the Faculty of Management, Tribhuvan University,
Kathmandu is an original piece of work under the supervision of Mr. Maheswor Khanal, faculty
member, MODERN NEPAL COLLEGE , Shorakhutte, Kathmandu, and is submitted in partial
fulfillment of the requirements for the degree of BACHELOR OF BUSINESS STUDIES (BBS).
This project work report has not been submitted to any other university or institution for the
award of any degree or diploma.

…………………
Abhishek shah
May, 2020

ii
 SUPERVISOR’S RECOMMENDATION

The project work report entitled PROFITABILITY RATIO ANALYSIS OF NABIL BANK
LIMITED submitted by ABHISHEK SHAH of MODERN NEPAL COLLEGE, Shorakhutte,
Kathmandu, is prepared under my supervision as per the procedure and format requirements laid
by the Faculty of Management, Tribhuvan University, as partial fulfillment of the requirements
for the degree of BACHELOR OF BUSINESS STUDIES (BBS). I, therefore, recommend the
project work report for evaluation.

………………..
Mr. Maheswor Khanal,
Modern Nepal College
May, 2020

iii
 ENDORSEMENT

We hereby endorse the project work report entitled PROFITABILITY RATIO ANALYSIS OF
NABIL BANK LIMITED submitted by ABHISHEK SHAH of MODERN NEPAL COLLEGE,
Kathmandu, in partial fulfillment of the requirements for the degree of the BACHELOR OF
BUSINESS STUDIES (BBS) for external evaluation.

……………………. ……………………….
(NAME) (NAME)
Chairman, Research Committee Campus Chief
(College) (College)
May, 2017 May, 2017

iv
 ACKNOWLEDGEMENT

This study attempts to examine the Profitability Ratio of NABIL Bank limited with available
data and information. It also deals with problem identification besides this field study to acquire
the reality of banking operation of NABIL Bank. For easier study, the data has been presented by
tables, graphs and have been interpreted using various statistical methods. This report tries to
focus on the study of NABIL Bank only.
I express my heartiest gratitude to ……………….. for guiding and inspiring me to do this
fieldwork. I would also like to thank …………………………….and the entire staff members for
their kind co-operation and supports providing valuable information required for the completion
of the report. Finally, I want to thank my colleagues for their continued moral support.

Abhishek shah

v
 TABLE OF CONTENTS

Title Page … … … …… … … … … … … … … … … … … … … … … … … … . … … .i
Declaration …. … … … … … … … … … … … … … … … … … … … … … … … … …ii
Supervisor’s Recommendation … … … … … … … … … … … … … … … … … … … …iii
Endorsement … … … … … … … … … … … … … … … … … … … … … … … … … .iv
Acknowledgements … … … … … … … … … … … … … … … … … … … … … … … v
Table of Contents… … … … … … … … … … … … … … … … … … … … … … … ….vi
List of Tables … … … … … … … … … … … … … … … … … … … … … … … …. ..vii
List of Figures … … … … … … … … … … … … … … … … … … … … … … … … viii
Abbreviations … … … … … … … … … … … … … … … … … … … … … … … … ix

CHAPTERI:INTRODUCTION…………..………………………………….1
Background of the Study … … … … … … … … … … … … … … .. … …1
Brief Introduction to NABIL Bank Ltd. … … … … … … … … … … … …4
Objectives of the Study … … … … … … … … … … … … … … … … ….6
Rationale/Significance of the Study … … … … … … … … … … … … … .6
Literature Review … … … … … … … … … … … … … … … … … … …6
Methods of Study … … … … … … … … … … … … ... ... . …. .. … … ...12
Limitations of Study… … … … … … … … … … … … … … … … … ...13

CHAPTER II: RESULTS AND ANALYSIS … … … … ….. … … …… … … … … ..14

Data Presentation … … … … … … … … … … … … … … … … … … ..14
Findings .. … … … … … … … … … … … .. … … … … … … … … … 26

CHAPTER III: SUMMARY AND CONCLUSION… … … … … … … … … … …

…28 Summary… … … … ... … …. … … … … ... … … … … … … … … … ..28
Conclusion… … … … … … … … … … … … … … … … … … … … ...29
BIBLIOGRAPHY
APPENDICES

vi
 LIST OF TABLES

Table 1: Profit margin ratio of NABIL … …. … … … … … … … … … … … … …. 15

Table 2: Exchange Gain to Total Income ratio of NABIL … … … … … … … … … .. 16

Table 3: Return on Assets ratio of NABIL … … … … … … … … … … … … … … .. 18

Table 4: Return on Equity of NABIL … … … … … … … … … … … … … … … … 19

Table 5: Overhead to Total Income ratio of NABIL … … … … … … … … … … … .. 20

Table 6: Staff expenses to Income ratio of NABIL … … … … … … … … … … … … 22

Table 7: Earnings per Share of NABIL … … … … … … … … … … … … … … … …23

Table 8: Dividend payout ratio of NABIL … … … … … … … … … … … … … … .. 25

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 LIST OF FIGURES

Figure 1: Profit margin ratio of NABIL … … … … … … … … … … … … … … … 15

Figure 2: Exchange Gain to Total Income ratio of NABIL … … … … … … … … … 17

Figure 3: Return on Assets ratio of NABIL … … … … … … … … … … … … … ... 18

Figure 4: Return on Equity of NABIL … … … … … … … … … … … … … … … 20

Figure 5: Overhead to Total Income ratio of NABIL … … … … … … … … … … .. 21

Figure 6: Staff expenses to Income ratio of NABIL … … … … … … … … … … … 22

Figure 7: Earnings per Share of NABIL … … … … … … … … … … … … … … ... 24

Figure 8: Dividend payout ratio of NABIL … … … … … … … … … … … … … ... 25

viii
 ABBREVIATIONS

ABBS - Any Branch Banking System

ASBA - Application Supported by Blocked Amount
ATM - Automated Teller Machine
BFI - Banks and Financial Institutions
BS - Bikram Sambat
EPS - Earning per Share
Etc. - Etcetera
FD - Fixed Deposit
FY - Financial Year
FOM - Faculty of Management
i.e. - That is
Ltd. - Limited
NPAT - Net Profit after Tax
NRB - Nepal Rastra Bank
NRs. - Nepalese Rupees
ROA - Return on Asset
ROE - Return on Equity
SWIFT - Society for Worldwide Interbank Financial Telecommunication

ix
 CHAPTER I
INTRODUCTION

Background of the Study

Profitability means ability to make profit from all the business activities of an Organization,
company, firm, or an enterprise. It shows how efficiently the Management can make profit by
using all the resources available in the market. According to Harward & Upton, “profitability is
the ‘the ability of a given investment to earn a return from its use.” However, the term
‘Profitability’ is not synonymous to the term ‘Efficiency’. Profitability is an index of efficiency;
and is regarded as a measure of efficiency and management guide to greater efficiency.
However, profitability is an important yardstick for measuring the efficiency, the extent of
profitability cannot be taken as a final proof of efficiency. Sometimes satisfactory profits can
mark inefficiency and conversely, a proper degree of efficiency can be accompanied by an
absence of profit. The net profit figure simply reveals a satisfactory balance between the values
receive and value given. The change in operational efficiency is merely one of the factors on
which profitability of an enterprise largely depends. Moreover, there are many other factors
besides efficiency, which affect the profitability. (wikipedia.org)

Sometimes, the terms ‘Profit’ and ‘Profitability’ are used interchangeably. But in real sense,
there is a difference between the two. Profit is an absolute term, whereas, the profitability is a
relative concept. However, they are closely related and mutually interdependent, having distinct
roles in business. Profit refers to the total income earned by the enterprise during the specified
period of time, while profitability refers to the operating efficiency of the enterprise. It is the
ability of the enterprise to make profit on sales. It is the ability of enterprise to get sufficient
return on the capital and employees used in the business operation. As Weston and Brigham
rightly notes “to the financial management profit is the test of efficiency and a measure of
control, to the owners a measure of the worth of their investment, to the creditors the margin of
safety, to the government a measure of taxable capacity and a basis of legislative action and to
the country profit is an index of economic progress, national income generated and the rise in the
standard of living” while profitability is an outcome of profit. In other words, no profit drives
towards profitability. (wikipedia.org)

1
Firms having same amount of profit may vary in terms of profitability. That is why R. S. Kul
Shrestha has rightly stated, “Profit in two separate business concern may be identical, yet, many
a times, and it usually happens that their profitability varies when measured in terms of size of
investment”. (wikipedia.org)

A bank is financial institution that accepts deposit from the public and creates credit. Leading
activities can be performed either directly or indirectly through capital markets. Due to their
impotence in the financial stability of a country, banks are highly regulated in most countries. Most
nation have institutionalized a system known as fractional reserve banking under which bank hold
liquid assets equal to only a portion of their current liabilities. In additional to their regulation
intended to ensure liquidity banks are generally subject to minimum capital requirement based on an
international of set capital standard known as the Basel accords. (wikipedia.org)
The term 'bank' is derived from the Latin word 'bancus', Italian word 'banca' and French word 'banque' all
of which mean 'a bench'. At ancient times there used to be some moneylenders who sat in the bench for
keeping, lending and exchanging of money in the market place.
Bank is a financial intermediary accepting deposit and granting loans. In fact, a modern bank performs
variety of function that is difficult to precise and general definition of a bank
According to Prof. Kinly, "A bank is an establishment which makes to individuals such advance of
money as may be required and safely made, and to which individuals entrust money when not required by
them for use."
According to C.R. Crowther, "A bank collects money from those who have it to spare or who are saving it
out of their incomes, and it lends this money to those who require it". (wikipedia.org)

History of Banking Sector

Banking began with the first prototype banks of merchants of the ancient world, which made grain loans
to farmers and traders who carried goods between cities. This began around 2000 BC in Assyria and
Babylonia. Later, in ancient Greece and during the Roman Empire, lenders based in temples made loans
and added two important innovations: they accepted deposits and changed money. Archaeology from this
period in ancient China and India also shows evidence of money lending activity.
The origins of modern banking can be traced to medieval and early Renaissance Italy, to the rich cities in
the center and north like Florence, Lucca, Siena, Venice and Genoa. The Bardi and Peruzzi families
dominated banking in 14th-century Florence, establishing branches in many other parts of Europe. One of

2
the most famous Italian banks was the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397. The
earliest known state deposit bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at
Genoa, Italy.
Modern banking practices, including fractional reserve banking and the issue of banknotes, emerged in
the 17th and 18th centuries. Merchants started to store their gold with the goldsmiths of London, who
possessed private vaults, and charged a fee for that service. In exchange for each deposit of precious
metal, the goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee;
these receipts could not be assigned; only the original depositor could collect the stored goods.
Gradually the goldsmiths began to lend the money out on behalf of the depositor, which led to the
development of modern banking practices; promissory notes (which evolved into banknotes) were issued
for money deposited as a loan to the goldsmith. The goldsmith paid interest on these deposits. Since the
promissory notes were payable on demand, and the advances (loans) to the goldsmith's customers were
repayable over a longer time period, this was an early form of fractional reserve banking. The promissory
notes developed into an assignable instrument which could circulate as a safe and convenient form of
money backed by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of
default. Thus, the goldsmiths of London became the forerunners of banking by creating new money based
on credit. The Bank of England was the first to begin the permanent issue of banknotes, in 1695. The
Royal Bank of Scotland established the first overdraft facility in 1728. By the beginning of the 19th
century a bankers' clearing house was established in London to allow multiple banks to clear transactions.
The Rothschilds pioneered international finance on a large scale, financing the purchase of the Suez canal
for the British government. (wikipedia.org)

History of Banking Sector in Nepal

According to the history, it is found that people of our country have been involved in business and trade
since long time ago. Though the production of copper utensils had been started during the 7 th century,
business relationship could not be established with India since India was involved in the production of
copper utensil. However, the craft concerned with copper, wood and metal in our country did attract the
Chinese and the Tibetan a lot, thus resulting in the establishment of business relationship with China and
Tibet.
In 12th century there was silver coin called 'Dam'. Later on in 14th century 'TANKADHARI' one is that dealt
with the lending money to the public. Its remain objective was to earn profit, so they used to change high
interest rate. To control interest rate 'TEJARATH ADDA' was established in 19th century. It provides loans to
the people working in government offices on the basis of the security and to public on the basis of

3
collateral they deposit. It charges only 5% interest rate per annum. It only provides loans but does not
accept deposit.
Nepal bank Ltd. is the first modern bank of Nepal. It is taken as the milestone of modern banking of the
country. Nepal bank marks the beginning of a new era in the history of the modern banking in Nepal. This
was established in 1937 A.D. Nepal Bank Ltd. remained the only financial institution of the country until
the foundation of Nepal Rastra Bank is 1956 A.D.
In 1957 A.D. Industrial Development Bank was established to promote the industrialization in Nepal,
which was later converted into Nepal Industrial Development Corporation (NIDC) in 1959 A.D. Rastriya
Banijya Bank, was established in 1965 A.D. as the second commercial bank of Nepal. As the agriculture
is the basic occupation of major Nepalese, the development of this sector plays in the prime role in the
economy. So, separate Agricultural Development Bank was established in 1968 A.D. This is the first
institution in agricultural financing. (wikipedia.org)
There are various types of bank working in modern banking system in Nepal. It includes central,
development; commercial, financial, co-operative and Micro Credit (Grameen) banks. The NRB will
classify the institutions into “A”, “B”, “C”, “D” groups on the basis of the minimum paid-up capital and
provide the suitable license to the bank or financial institution. Group ‘A’ is for commercial bank, ‘B’ for
the development bank, ‘C’ for the financial institution and ‘D’ for the Micro Finance Development
Banks. There are 28 commercial banks, 57 development banks, 36 financial companies, 48 micro credit
(Grameen) development banks and 15 saving and credit co-operation (licensed by Nepal Rastra Bank) are
established so far in Nepal. (http://nrb.org.np/)

A Brief Introduction to NABIL Bank Ltd.

NABIL Bank Ltd. is the Nepal’s first ever joint venture bank that initiated its operation on 12th July
1984. Nepal bank (international) limited Ireland was its joint venture partner at that time. It also
received management support from national bank of Bangladesh, Dhaka at the time of inauguration.
Its authorized capital used to have only rs.100 million at the starting time. Now it has ascended its
capital to Rs.500 million. With advancement it has 14 branches on a national scale which is the
utmost number of any joint venture bank in Nepal. NABIL bank is distinguished for providing latest
technology with vastly personalized service. Most of its banking activities and services are done
through computers. NABIL provides different services like ATM, credit cards, tele-banking services,
e-banking services, safe deposit locker services. Besides these services

4
NABIL is the only bank to maneuver inside the international airport of arrival and departure of
cargoes. NABIL has drawing arrangement with 75 banks in 40 countries of the world and with
the exchange companies and bank as well. The policies of His Majesty’s Government and Nepal
Rastra Bank rule and regulation preside over NABIL. (http://www.nabilbank.com.np)

Among different commercial bank, Nabil bank is the commercial bank which collects money from
general public and invests that amount to different productive sector. It not accepts deposit and
provides loan but also transfer money from one place to another place or person has an agent. Nabil
bank is the main agent of Western Union Money Transfer. Nabil bank is the expanding its branch
according to need, want and market of people or public. (http://www.nabilbank.com.np)
The share holding of NABIL Bank Ltd. is as following:

Subscription Percent Holding

N.B. (International), Ltd., Ireland 50%
Nepalese Public 30%
NIDC 10%
Rastriya Beema Sansthan 9.67%
Nepal Stock Exchange Ltd. 0.33%
Total 100%
Figure 1
Equity Ownership Structure
N.B. (International), Ltd.,
Ireland
Nepalese Public
9.67% 0.33%
10%
NIDC
50%
Rastriya Beema Sansthan
30%

Nepal Stock Exchange Ltd.

Nabil cordially invites you to visit its branches/counters to have the taste of fledge
banking services
NABIL BANK LIMITED
HEAD OFFICE
Nabil House, Kamaladi,
Katmandu.

1.2.1. Branches Nabil Bank Ltd.

1. Kantipath Branch, Kantipath 9. Itahari Branch, Main Road, Itahari
2. Nabil House Corporate Banking, 10. Butwal Branch, Main road, Butwal
Nabil House, Kamaladi, Ktm.
3. New Road Branch, New Road 11. Bhalwadi Branch, Bhalwadi, Rupandehi
4. Jorpati Branch, Jorpati 12. Pokhara Branch, Chipledhunga, Pokhara
5. Lalitpur Branch, Kupondole 13. Bhairahawa Branch, Narayanpath
6. Airport Exchange Counter, TIA 14. Credit Card Counter, Lakeside, Pokhara
7. Credit Card Counter, Thamel, 15.Birgunj Branch, Adarshanagar, Birgunj
Ktm
8. Biratnagar Branch, Goswara 16. Alau Branch, Alau, Parsa
Raod

The Board of Directors of Nabil consists of:-

Chairman Mr. Satyendra Pyara Shrestha, NB(International) Limited

Director Mr. Supriya Gupta , NB(International) Limited
Director Mr. Mukunda Nath Dhungel, Nepal Stock Exchange Limited
Director Mr. Mohiuddin Ahemd, NB(International) Limited
Alternate Director Mr. Manish Gupta, NB(International) Limited

 Deposits

Following types of accounts can he opened at any NABIL branches upon

completion of simple documentary requirement. All the accounts can he opened in
various currencies (against which rate are provided) subject to ruled of opening
and fulfilling the required documents.
 Savings
 Current
 Fixed
 Call
 Guarantees

NABIL Bank issues guarantees and Bonds on behalf of customers to the

beneficiaries in Nepal. Upon fulfillment of requirement, NABIL also arranges
issuance of guarantees in the name of foreign beneficiaries through reputed
international banks.
 Credit Cards
NABIL is the first bank in Nepal to issue Rupee (valid in Nepal and India) and
international valid worldwide) Master card, cards in Nepal, a global prestigious
service to its esteemed clients NABIL is also expanding credit and facilities
issuing visa credit card very soon.

 Tele-banking

Telephone banking is another product provided by NABIL bank to its customers.

Under this arrangement customer can know the balance of his account through
telephone with out human assistance.

 Western Union Money Transfer

NABIL bank has established unique money remittance system with western union
financial service whereby money can be remitted anywhere in the world within
minutes, through online computer system funds can be transferred instantly to
about 55000 locations in 165 countries of the world. Nepali wage earners abroad
can send money to their near and dear ones in Nepal within a very short time. By
using the above services, you can now send and receive money within minutes in
165 countries in the world.

 SWIFT (Society for Worldwide Inter Bank Financial Telecommunication)

NABIL has started worldwide transfer of fund by this fast and efficient funds
transfer and messaging system. Messaging and fund transfers are carried through
SWIFT with minimum time and cost.
 Safe Deposit Locker

NABIL provides safe deposit lockers to keep valuables safety at a minimum cost.
Presently, this facility is available at Kantipath and Kamaladi offices.

 Automated Teller Machines (ATM)

NABIL has launched the ATM facility to its account holders to enable fast
withdrawal of funds in account holder need not wait long hours for withdrawing
money and sign cheques anymore. A simple card with a unique PIN number
known only to the account holder will suffice.
 Other facilities
The bank provides the facilities for the customer like deposit services, loans and
advances, consumer finance, cash management and remittance services etc.

1.3 Objective of the study

The main objective of this study is to analyze the financial performance and solvency
position of NABIL by using different financial ratios. This study is to analyze, examine and
interpret the policies adopted by NABIL. The main objectives of this study are given below:
a. To find out the profitability of the NABIL Bank Limited
b. To analyze the profitability
c. To determine factors of profitability
d. To evaluate profitability ratio of NABIL Bank Ltd

e. To provide information of NABIL in banking sector

f. To suggest and recommend some measure on the basis of the study of financial
performance evaluation for the improvement of financial performance of MBL in
the future.

1.4 Rationale of the study:

Generally, these types of study give emphasis on the welfare of students. Such type of
study makes students active and independent and it also allows students to get practical
knowledge of what they studied theoretically. So, while preparing the field work report, they
gain knowledge through their own experience enabling them to deal with problem relating to
their studies. This study also intends to let students know about required information by
themselves. The others importance of this study are as follow
1) The BBS level would remain incomplete without this study.
2) This report can be a source of secondary data for researchers.
3) This study will be helpful to the management in order to analyze their own success and
failure while leading the firm in planned direction.

4) It will be useful for concerned company as the study has provided suggestions.

5) This field report can be used as guideline for the future students while preparing such
type of field report
 Literature Review

Determinants of bank profitability can be split between those that are internal and external. Internal
determinants of bank profitability can be defined as those factors that are influenced by the bank’s
management decisions and policy objectives. Management effects are the results of differences in
bank management objectives, policies, decisions, and actions reflected in differences in bank
including profitability. Management decisions, especially regarding loan portfolio concentration,
were an important contributing factor in bank performance. Researchers frequently attribute
good bank performance to quality management. Management quality is assessed in terms of
senior officers’ awareness and control of the bank’s polices and performance.
Most of the ratios were significantly related to profitability, particularly capital ratios, interest
paid and received, salaries and wages.
A number of studies have included that expense control is the primary determinant of bank
profitability. Expense management offers a major and consistent opportunity for profitability
improvement. With the large size and the large differences in salaries and wages, the efficient
use of labour is a key determinant of relative profitability. Staff expenses, as conventional
wisdom proposes, is expected to be inversely related to profitability because these cost reduce
the ‘bottom line’ or the total operations of the bank. The level of staff expenses appears to have a
negative impact on banks’ ROA in the study. There is a positive relationship between staffs and
total profits. External determinants of bank profitability are concerned with those factors which
are not influenced by specific bank’s decisions and policies, but by events outside the influence
of the bank. The steps of analysis are as follows
i) Selection of the information relevant to the decision.
ii) Arrangement or the selected information to highlight the significant relationship of
the financial yardsticks.
iii) Interpretation and drawing of inferences and conclusions.

To evaluate the profitability ratio of a firm, the analyst needs a certain parameters of the
company by which the quantitative relationship and its position come out. The most widely and
effective used tool of the profitability ratio is the ratio analysis. The profitability ratio is the
measurement of relationship between two accounting figures, expressed in mathematical way or
the numerical relationship between two variables expressed as (i) percentage or, (ii) fraction or
(iii) in proportion of numbers.
1.6 Method
The research methodology is the process of arriving to the solution of the problem
through planned and systematic dealing with the collection analysis and interpretation of facts
and figures. As this research entirely consider about the operation the performances of MBL
those research methodology has been used which proves helpful to tit.
For the purpose of achieving the objective the following methodology has been to follow
which included research design, nature of data, data gathering, procedure, presentation and
analysis technique.
1.6.1 Research Design
Research design is the over all plan of the researcher for the research. It includes how the
data are collected, analyzed and output is formed by the various tools and techniques used in
research methodology. Without research design this fieldwork has not been completed.
I made different plans with regard to collection of data. Presentation of data and
designing as mentioned earlier and follow the same usual procedure to prepare the report of
MBL in the subject “A case study on deposit and loan condition of Machhapuchchhre bank
limited.” The prime step of the study is to collect necessary information from MBL by concerned
staffs. The collected data are then presented and analyzed using different statistical tools in this
report.

1.6.2Nature and sources of data

Data are those facts of formation or variables which are analyzed to solve the research
problem. Data are either of primary nature or secondary nature. They are collected either from
primary source or secondary source. Here data are collected from both sources.
a. As primary sources, I interviewed and had detailed conversation with the respective staff
members of MBL.
b. Secondary sources.
Besides the primary source, published materials, balance sheets income statement,
annual report and other financial information are used as secondary sources unlike primary data;
it is cheaper, easier and consuming less time to collect. But it is necessary to test or get assured
of the authenticity of secondary date so collected.
In this assessment, the use of secondary data is more in comparison to the primary
data. The data are mostly extracted from the annual report of MBL.
1.6.3 Tool and Techniques of analysis
a. Profitability Ratio
Profitability ratios are concerned with measuring the operating efficiency of the bank.
“Profitability ratio are designed to provide answer to basically to those questions: (i) Is
the profit earned by the firm adequate? (ii) What rate of return does it represent? (iii)
What is the rate of profit for various divisions and segments of the firms? (iv) What are
the earnings per share? (v) What amount was paid on dividends? (vi) What is the rate of
return to equity holders and so on?”10
Profit is the ultimate output of the bank and it will have no future if it fails to
make sufficient profits. A profit is the difference between total revenue and total
expenses over a period of time. The profit and obtained by successful administration
management, credit management, operating management and risk management. Thus, a
bank realize profit as long as interest-earning assets exceeds interest-bearing liabilities.
The profitability of the bank is measured with a help of profitability ratio. Such
profitability ratios include.

1. Return on assets (ROA)

The ratio between net profit and total assets is known as return on assets. It shows the
contribution of assets on profits.

NPAT
ROA =
TotalAssets

Higher return on total assets is reasonable.

2. Return on Share Holder’s Equity

The ratio clarifies the relation between net profit and shareholders equity.

NPAT
Return on Share Holder’s Equity =
ShareholderEquity
Higher the ratio, better the use of capital.

3. Return on capital Employed

It informs the percentage of profit on capital employed

NPAT
Return on capital Employed =
CapitalEmployed

4. Return on common equity

After paying the interest on debenture and dividend on preference share, the
remaining amount of profit is called return on common equity.

10
Khan, M.Y. and Jain, P.K. Financial Management Text and Problems, Tata McGrow Hill Publication
Company Ltd, New Delhi, 1992, P-99
 NPAT  Pr eferencedividend
Return on common equity=
CommonShareholderEquity
Higher the ratio, proper will be the utilization of investment

5. Earning per share (EPS)

The earning per share on EPS is determined by dividing the earnings available
to the equity holders by number of equity holders or number of equity shares
outstanding.

EarningAvailabletoEq uityShareholders
EPS =
No.ofEquityShareouts tan ding

or

NPAT  Pr eferencedividend
EPS =
No.ofEquityshareouts tan ding

Earnings available to equity shareholders are the earning available after

deducting the preference dividend.

6. Dividend Per Share (DPS)

DPS is determined by dividing the earning paid to the shareholder by the no. of
equity share outstanding.

Dividendpaidtoshareholders
DPS=
No.ofEquityshareouts tan ding

7. Dividend Payout Ratio (DPR)

The DPR measures the relationship between earning of the firm belonging to
the ordinary shareholders and dividend paid to them out of those earnings. It tells as
to what proportion of the earnings per share has been paid as cash dividends and what
proportion has been return to plough back for the banks expansion and growth.
The DPR is calculated by dividing dividend per share by earnings per share.

Dividendpershare
DPR =
Earningpershare

8. Dividend Yield
The dividend yield evaluates the shareholder cash receipts in relation to the
market price per share. It expresses the dividend per share as a percentage of the bank
market price per share.
The dividend yield is determined by dividing the cash dividends per share by the
market price per share.

Dividendpershare
Dividend Yield =
Marketpricepershare
 Higher the growth potential, grater the retention of earning and hence forth, lower and
dividend yield and vice-versa.

9. Earning Yield
The earning yield or earning price ratio may be defined as the ratio of earning per
share to the market price per share. It indicates the shareholders return in relation to
make market price per share.
The earning yield is obtained by dividing earning per share by market price per
share.

Earningpershare
Earning Yield=
Marketpricepershare

10. Price Earning Ratio

The price/earning ratio reflects the investors perception about the overall risk of
the bank earnings and the growth in the bank earnings. It indicates the investors
judgment about the bank performances. It also tells the price currently bargained by the
market participant in common stock for each rupee of earning.
The P/E ratio is determined by dividing market price per share by earning per
share.

Marketpricepershare
Price Earning Ratio=
Earningpershare

1.7 Limitation of the study:

Although a great effort has been employed in order to prepare grand design of the report, it
has some limitation. The limitation of the study is as below.

1. The major factor contributing to the limitation of the study is the time factors. Since, this report had to
be submitted within a limited span of time.
2. The study period covers only five fiscal years from 2070/2071 to 20752076.
3. The study is based on secondary data and as per information provides by MBL bank.
4. This study does not take up the financial performance of other commercial banks.
5. The reliability and accuracy of data is based on the published annual
reports of the concerned bank.
 CHAPTER II
RESULTS AND ANALYSIS

Data Presentation
Presentation and data analysis of data is the main body of the study. Introduction, review of
literature and research methodology is presented in the previous chapter that provide the basic
inputs to analyze and interpret the data. In this chapter, data are presented and analyzed.

Financial Analysis
Financial statement analysis generally begins with the calculation of set of financial ratios designed
to reveal the relative strength and weaknesses of a company as compared to other companies in the
same industry and to show weather the firm's position has been improving or deteriorating over time.
It helps the concerned parties to spot out the financial strength and weakness of the firm.

Ratio Analysis
Ratio analysis is the systematic use of profitability ratio information of the firm’s strength and
weakness as its historical performance, and current condition can be determined. It provides the
trends of organization's financial performance. Ratios are very useful, essential and powerful tools to
interpret the financial performance of the company. In this report, following ratios are used:

A. Profit Margin Ratio

It is the ratio of net profit to net sales. It is measured by this formula:
Net profit

Profit margin ratio = × 100

Net sales

14
Table 1: Profit margin ratio of NABIL (in Millions)

F/Y NPAT Total Income Ratio in%(x) Index (%) x2

2012/13 271.6 1639.1 16.57 100 274.57
2013/14 416.2 1427.4 29.16 175.97 850.18
2014/15 455.3 1426.4 31.92 192.63 1018.86
2015/16 520.1 1510.7 34.43 207.77 1185.27
2016/17 635.3 1743.5 36.44 219.90 1327.74

∑x2=4656.62
∑x=148.51
π= 29.7
σ=7.02
CV=23.64
Source: “Banking and Financial Statistics” NABIL mid July 2017

Profit Margin Ratio in %

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2012/13 2013/14 2014/15 2015/16 2016/17
F/Y

Figure 1: Profit margin ratio of NABIL

The profit margin ratio of NABIL shows the different year ratios viz. 16.57 in 2012/13, 29.16 in
2013/14, 31.92 in 2014/15, 34.43 in 2015/16, and 36.44 in 2016/17 and the mean, standard
deviation and coefficient of variance are 29.70, 7.02% and 23.64% receptively.

15
B. Exchange Gain to Total Income Ratio

The exchange gain to total income ratio measures total income and exchange gain ratio, it is
measure by this formula:
Exchange gain to total income Ratio =
Exchange Gain × 100
Total Income

Table 2: Exchange Gain to Total Income ratio of NABIL (in Millions)

F/Y Exchange gain Total Income Ratio in%(x) Index (%) x2

2012/13 154.2 1639.1 9.41 100 85.55

2013/14 144.1 1427.4 10.09 107.23 101.81

2014/15 157.3 1426.4 11.03 117.22 121.66

2015/16 184.9 1510.7 12.24 130.07 149.82

2016/17 185.5 1743.5 10.64 113.07 113.21

∑x2=575.04
∑x=53.41

̅=10.68

σ =0.95

CV=9

Source: “Banking and Financial Statistics” NABIL mid July 2017

16
 Exchange gain to income ratio (%)
4.5

3.5

2.5

1.5

0.5

0
2012/13 2013/14 2014/15 2015/16 2016/17
F/Y

Figure 2: Exchange Gain to Total Income ratio of NABIL

The exchange gain to income ratio of NABIL shows the different year ratios viz. 9.41 in
2012/13, 10.09 in 2013/14, 11.03 in 2014/15, 12.24 in 2015/16, and 10.64 in 2016/17 and the
mean, standard deviation and coefficient of variance are 10.68, 0.95% and 9% receptively.

C. Return on Assets

It is the ratio of net income to total assets measures the return on total assets (ROA) after interest
and taxes. It is measured by this formula
NPAT
Return on Assets = Total Assets × 100

17
Table 3: Return on Assets ratio of NABIL (amount in Millions)

F/Y NPAT Total Assets Ratio in%(x) Index (%) x2

2012/13 271.6 17629.2 1.54 100 2.37

2013/14 416.2 16562.5 2.51 163 6.3

2014/15 455.3 16745.5 2.72 176.62 7.4

2015/16 520.1 17064.1 3.05 198.05 9.3

2016/17 635.3 22330 2.85 185.07 8.12

∑x2=33.49
∑x=12.67

̅=2.53

σ =0.53

CV=21

Source: “Banking and Financial Statistics” NABIL mid July 2017

Ratio in %
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2012/13 2013/14 2014/15 2015/16 2016/17
F/Y

Figure 3: Return on Assets ratio of NABIL

18
The return on assets ratio show the different year ratios viz. 1.54 in 2012/13, 2.51 in 2013/14,
2.72 in 2014/15, 3.05 in 2015/16, and 2.85 in 2016/17 and the mean, standard deviation and
coefficient of variance are 2.53, 0.53% and 21% receptively.

D. Return on Equity

It is the ratio of Net Income after Tax to common equity measures the return on equity (ROE) or
Rate of return on the stockholder investment.
Return on equity (ROE) = EquityNPAT × 100

Table 4: Return on Equity of NABIL (amount in Millions)

F/Y NPAT Equity Ratio in%(x) Index (%) x2

2012/13 271.6 1146.4 23.69 100 561.22

2013/14 416.2 1314.2 31.67 133.70 1003

2014/15 455.3 11481.7 30.73 129.72 944.33

2015/16 520.1 1657.6 31.38 134.57 984.70

2016/17 635.3 1875 33.88 143.01 1147.85

∑x2=4641.10
∑x=151.35

̅=30.27

σ =3.46

CV=11.42

Source: “Banking and Financial Statistics” NABIL mid July 2017

19
 Ratio in %
5

0
2012/13 2013/14 2014/15 2015/16 2016/17
F/Y

Figure 4: Return on Equity of NABIL

The return on Equity ratio show the different year ratios viz. 23.69 in 2012/13, 31.67 in 2013/14,
30.73 in 2014/15, 31.38 in 2015/16, and 33.88 in 2016/17 and the mean, standard deviation and
coefficient of variance are 30.27, 3.46% and 11.42% receptively.

E. Overhead to Total Income Ratio

It is the ratio of Overhead to Net Income, measured by the following formula.

Overhead

Overhead to total Income Ratio = × 100

Total Income

Table 5: Overhead to Total Income ratio of NABIL (amount in Millions)

F/Y NPAT Total Income Ratio in%(x) Index (%) x2

2012/13 134.3 1639.1 8.19 100 67.08
2013/14 166.2 1427.4 11.64 142.12 135.49
2014/15 153.4 1426.4 10.75 131.26 115.56
2015/16 190.3 1510.7 12.60 153.85 158.76
2016/17 182.7 1743.5 10.48 127.96 109.83

∑x2=586.72
∑x=53.66
̅ 10.73
=

σ =1.47
CV=13.72
Source: “Banking and Financial Statistics” NABIL mid July 2017

20
 Ratio in %
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2012/13 2013/14 2014/15 2015/16 2016/17
F/Y

Figure 5: Overhead to Total Income ratio of NABIL

The Overhead to Total Income ratio shows the different year ratios viz. 8.19 in 2012/13, 11.64 in
2013/14, 10.75 in 2014/15, 12.60 in 2015/16, and 10.48 in 2016/17 and the mean, standard
deviation and coefficient of variance are 10.73%, 1.47% and 13.72% receptively.

F. Staff Expenses to Total Income Ratio

It is the ratio of Staff Expenses to Net Income. This ratio compare the efficiency of company's
staffs with the staffs of peer companies, competitors and own historical records in term of total
income. The lower of this ratio indicate more efficiency of the staffs of the company. It is
measured by the formula
Staff expenses to total income ratio = Staff Expenses × 100
Total Income

21
Table 6: Staff expenses to Income ratio of NABIL (amount in Millions)

Source: “Banking and Financial Statistics” NABIL mid July 2017

F/Y Staff Expenses Total Income Ratio in%(x) Index (%) x2

2012/13 144.9 1639.1 8.84 100 78.15

2013/14 210.6 1427.4 14.75 166.85 217.56

2014/15 180.8 1426.4 12.67 143.33 160.53

2015/16 199.5 1510.7 13.21 149.43 174.50

2016/17 219.8 1743.5 12.61 142.65 159.01

∑x2=789.75
∑x=62.08

̅=12.42

σ =1.95

CV=15.69

Ratio in %
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2012/13 2013/14 2014/15 2015/16 2016/17
F/Y

Figure 6: Staff expenses to Income ratio of NABIL

22
The staff expenses to total income ratio show the different year ratios viz. 8.84 in 2012/13, 14.75
in 2013/14, 12.67 in 2014/15, 13.21 in 2015/16, and 12.61 in 2016/17 and the mean, standard
deviation and coefficient of variance are 12.42, 1.95% and 15.69% receptively.

G. Earnings per Share:

It is the ratio of Net Profit after Tax to No. of Common Share. It is calculated by this formula,
NPAT
Earnings per Share (EPS) = No.of Common Share × 100

Table 7: Earning Per Share of NABIL

F/Y NPAT No. of Common Ratio in%(x) Index (%) x2

Shares

2012/13 271638612 4916544 55.25 100 3052.56

2013/14 416235811 4916544 84.66 153.23 7167.32

2014/15 455311222 4916544 92.61 167.62 8576.61

2015/16 520114085 4916544 105.49 190.93 11128.14

2016/17 635262349 4916544 129.21 233.86 16695.22

∑x2=46619.85
∑x=467.22

̅=93.44

σ =24.33

CV=26.04

Source: “Banking and Financial Statistics” NABIL mid July 2017

23
 Ratio (%)
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2012/13 2013/14 2014/15 2015/16 2016/17
F/Y

Figure 7: Earnings per Share of NABIL

Earnings per Share show the different year earnings per share viz. 55.25 in 2012/13, 84.66 in
2013/14, 92.61 in 2014/15, 105.49 in 2015/16, and 129.21 in 2016/17 and the mean,
standard deviation and coefficient of variance are 93.44, 24.33% and 26.04% receptively.

H. Dividend Payout Ratio

It is the ratio of dividend to net income. It is calculated by the following formula:

Dividend payout ratio = × 100

24
Table 8: Dividend payout ratio of NABIL

F/Y Dividend NPAT Ratio in%(x) Index (%) x2

2012/13 5.25 271.6 1.93 100.00 3.74
2013/14 10.50 416.2 2.52 130.51 6.36
2014/15 15.75 455.3 3.46 178.96 11.97
2015/16 21.00 520.1 4.04 208.88 16.30
2016/17 21.00 635.3 3.31 171.01 10.93

∑x2=49.30
∑x=15.26

π= 3.05

σ=0.75
CV=24.59
Source: “Banking and Financial Statistics” NABIL mid July 2017

Ratio (%)
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2012/13 2013/14 2014/15 2015/16 2016/17
F/Y

Figure 8: Dividend payout ratio of NABIL

Dividend payout ratio show the different year ratio viz. 1.93 in 2012/13, 2.52 in 2013/14, 3.46 in
2014/15, 4.04 in 2015/16, and 3.31 in 2016/17 and the mean, standard deviation and coefficient
of variance are 3.05, 0.75% and 24.59% receptively.

25
Findings

In this fieldwork report, we study about NABIL profitability position and we found the financial
position of NABIL is better. In compliance with analysis, the following finding as made:

• The gross margin ratio shows an increasing trend as compared to the base year, which is
beneficial to the bank. The min. index value is 175.97 as that of 2013/14 and the max
index value is 219.90 as that of 2016/17.
• The exchange gain to total income ratio shows an increasing trend as compared to the
base year, which is beneficial to the bank. The min. index value is 107.23 as that of
2013/14 and the max index value is 130.07 as that of 2015/16.
• The return on assets of NABIL shows an increasing trend and has max. Index value of
198.05 in the year 2015/16 as compared to base year 2012/13 i.e. 100. It shows that,
NABIL is successful in deriving benefit from the assets it has used.
• The trend of return on equity (ROE) is increasing. It shows that the bank is able to satisfy
its shareholder’s to the fullest. The max return index is 143.01 which is 43.01% more
than that of the base year 2012/13. Thus, it is able to achieve the goal of wealth
maximization too.
• The Overhead to Total Income ratio shows a fluctuating trend. The max. Index value is
153.85 as that of 2015/16 and the min. increased index value is 127.96 as in 2016/17.
This shows the operational efficiency of NABIL is satisfactory.
• The Staff Expenses to Total Income ratio of NABIL has increased by 66.85% in the year
2013/14. The minimum increased level of Staff Expenses compared to Total Income is
42.65%, during the recent year 2016/17. It shows that NABIL is successful in cutting
down extra unnecessary expenses related to staffs.
• The earning per share of NABIL increase continuously during the year 2012/13 to
2016/17 and maximum earning per share is 129.21 and the least price is 55.25. This
shows the return of each equity shareholder is in satisfactory condition.
• Dividend payout ratio shows increasing trends as compared to base year. The min. index
value is 130.51 as that of 2013/14 and the max index value is 208.88 as that of 2015/16.
• The position of profit over different years i.e. (2012/13 to 2016/17) shows the profit of
NABIL decreased continually for the first three years and then it is rising rapidly. During

26
 2014/15, the level of profit decreased to 1426.4 million. At 2016/17, the peak level of
profit is 1743.5 million.
• The position of income of NABIL over different year i.e. (2012/13 to 2016/17) shows
that income composition of NABIL is no more difference.
• The position of expenses of NABIL over different year i.e. (2012/13 to 2016/17) shows
that expenses of NABIL is no more difference.

27
 CHAPTER III
SUMMARY AND CONCLUSION

Summary
Nepal is one of the least developed countries of the world. For most of the developing process, it
is financially depending upon the foreign countries. It is economically too weak. Thus, the
economic condition of the people is weak. In Nepal 85% of the people are depended upon
agricultural sector which is unable to provide full employment to the people. Nepal government
has to activate people in the nation’s development through overall industrialization of nation. For
this purpose, development of sound banking system is essential.

The commercial banks are of foremost importance to a country because of their roles as a strong
pillar for the economic development of a nation. With the wave of the globalization and
advancement in technologies, without the strong base of commercial banking platform, the
economic development of a nation is bound to be paralyzed. Thus, it would be very legitimate to
say that the commercial banks are of a more importance to a developing country like Nepal and
NABIL Bank Ltd. being the pioneer financial institutions of Nepal, has undouble filled such gap
to a great extent.

In Nepalese banking sector, commercial banks including ventures banks are operating at present.
In the absences of modern banking any country cannot develop the economic activity. Therefore,
it is essential to find out whether or not the banks are serving an important contribution to
develop sectors of economy. Profitability ratio is said to be general business of fund, which
shows the bank ability to meet cash requirement. In this record, this study has been based upon
the objective to evaluate the profitability ratio of NABIL Bank Ltd.

Basically, banks are proliferating, cutthroat competition is prevailing plus there is an unhealthy
competition. So, in this competitive banking scenario, NABIL Bank Ltd. is retaining and
maintaining its strengths and proving itself as a benchmark in the Nepalese banking industry.

28
The financial performance of NABIL Bank Ltd. reveals that it is in sound financial position. NABIL
Bank Ltd. earns the profit every year in increasing trend. The bank is very much in line with its
desire objective and goals. The bank has been able to successfully overcome all the economic and
competitive barriers to establish it as financially feasible unit. The investors of NABIL Bank Ltd, are
receiving sufficient rate of return on their investment and the creditors are also satisfied. NABIL
Bank Ltd. has been playing an important role in financial economic sector of the country. It has
fulfilled its objectives for which it has made at the time of the establishment.

Conclusion
With some commercial banks and development banks operating in Nepal, the market seems over
crowed and the banks are now finding a tough competition among themselves. Since the entry
barriers are not so high due to the government’s liberal policy, this competition is expected to be
more intense in the near future, as there is always the possibility of a new player entering this
sector. NABIL Bank has not maintained a balanced ratio among its deposit liabilities.
Consequently, the bank does not seem to be able to utilize its high cost resources in high yielding
investment portfolio. The investment portfolio of the bank has not been managed so efficiently
as to maximize the returns there from. The operational efficiency of the bank is found
unsatisfactory because of the series of operational loss over the period. Lower market value is a
reflection of a weaker profitability ratio of the bank.

On the basis of this study, the following conclusion can be made:

• The overall results are satisfactory. But in some case the NABIL Bank Ltd should take
certain steps to improve the bank current financial condition. Therefore, some
recommendations are being put forward for its improvement along with its development
of the country.
• The proportion of the saving deposit account is high in total deposit liability. So, it is
recommended that the bank should utilize the amount collected from the saving deposit
account carefully. It should be invested in the higher yielding areas.
• The cash and bank balance in the NABIL Bank Ltd is satisfactory. It is higher a bit
though. Bank should analyze the opportunities for short term investment.

29
• Bank should not spend too much in the fixed assets because it yields only a nominal
portion, almost no yield.
• The profitability ratio shows the profitability position of NABIL is satisfactory. It should
give continuity to this growth trend in future.
• These ratios show that NABIL is more efficient in mobilizing the resources of owners
and its operational efficiency is also satisfactory.
• The bank has been successful in winning the trust of the customer, as volume of expenses
is no more difference and it's growing slowly than previous years. There is general rise
and fall in expenses level during different years. It should give basic priority to the
customers and personnel first and then the organizational objectives, which will help to
develop effective value chain in the organization.
• Branches existing in some limited areas will not enable a bank to boost up its campaign
of deposit mobilization and credit disbursement as desired. Therefore, NABIL is
recommended to open new branches at certain places every year after making feasibility
of studies. And also, it has launched various ideas as NABIL PREPAID card, extended
banking hours, etc. so as to collect maximum amount of funds from general public.
• Besides these, all the other functions of the company are satisfactory, no comments upon
it.

30
 BIBLIOGRAPHY

Adhikari, Devraj, Pandey, Dhrubalal.(2017). Business Research Methods. Kathmandu: Asmita

Publication.

Bhandari, D. R. (2012). Principal & Practice of Banking & Insurance. Kathmandu: Asia
Publication

Joshi, S. (2009). Banking and Insurance Management. Kathamandu: Taleju Prakashan

Gup, B. E., Kolari, J. W.(2016). Commercial Banking. New Delhi: Wiley India.

Paudel, Rajan, B., Baral, Keshar, J., Joshi, Padam, R., Gautam, Rishi, R., Rana, Surya, B.(2016).
Fundamentals of Corporate Finance. Kathmandu: Asmita Publications.

Paudel, Rajan, B., Baral, Keshar, J., Joshi, Padam, R., Gautam, Rishi, R., Rana, Surya, B.(2016).
Fundamentals of Financial Markets and Institutions. Kathmandu: Asmita
Publications.

Paudel, Rajan, B., Kehar J. Baral, Rishi Raj Gautam, Gyan B. Dahal. Surya B. R.(2008).
Fundamental of Financial Management. Kathmandu: Asmita Publications.

Website accessed

http://en.wikipedia.org/wiki/Bank

http://nrb.org.np/

http://www.myaccountingcourse.com/financial-ratios

http://www.nabilbank.com.np

Journal

“Banking and Financial Statistics” NABIL mid July 2017

Report

Annual report of NABIL Bank Ltd., 2013 to 2017

31
 ANNEX-I
List of Commercial Banks in Nepal
(NRs. in Core)
S. Name of Bank Operation Head Office Paid up
No. Date (A.D.) Capital
1 Nepal Bank Ltd. 1937/11/15 Dharmapath,Kathmandu 649.95
2 Rastriya Banijya Bank Ltd. 1966/01/23 Singhadurbarplaza,Kathmandu 858.90
3 Agriculture Development Bank Ltd. 1968/01/21 Ramshahpath, Kathmandu 1037.44
4 Nabil Bank Ltd. 1984/07/12 Beena Marg, Kathmandu 618.35
5 Nepal Investment Bank Ltd. 1986/03/09 Durbarmarg, Kathmandu 870.66
6 Standard Chartered Bank Nepal Ltd. 1987/02/28 Nayabaneshwor, Kathmandu 374.99
7 Himalayan Bank Ltd. 1993/01/18 Kamaladi, Kathmandu 449.91
8 Nepal SBI Bank Ltd. 1993/07/07 Kesharmahal, Kathmandu 388.37
9 Nepal Bangaladesh Bank Ltd. 1994/06/06 Kamaladi, Kathmandu 401.18
10 Everest Bank Ltd. 1994/10/18 Lazimpat , Kathmandu 274.26
11 Kumari Bank Ltd. 2001/04/03 Durbarmarg, Kathmandu 269.92
12 Laxmi Bank Ltd. 2002/04/03 Hattisar, Kathmandu 303.92
13 Citizens Bank International Ltd. 2007/04/20 Kamaladi, Kathmandu 553.74
14 Prime Commercial Bank Ltd. 2007/09/24 Newroad, Kathmandu 489.19
15 Sunrise Bank Ltd. 2007/10/12 Gairidhara, Kathmandu 530.14
16 Janata Bank Nepal Ltd. 2010/04/05 Naya Baneshwor, Kathmandu 206.00
17 Mega Bank Nepal Ltd. 2010/07/23 Kantipath, Kathmandu 401.20
18 Century Commercial Bank Ltd. 2011/03/10 Putalisadak , Kathmandu 368.90
19 Sanima Bank Ltd. 2012/02/15 Nagpokhari, Kathmandu 530.59
20 Machhapuchhre Bank Ltd. 2012/7/9* New Road, Pokhara, Kaski 386.45
21 NIC Asia Bank Ltd. 2013/6/30* Thapathali, Kathmandu 581.96
22 Global IME Bank Ltd. 2014/4/9* Panipokhari, Kathmandu 616.43
23 NMB Bank Ltd. 2015/10/18* Babarmahal, Kathmandu 543.01
24 Prabhu Bank Ltd. 2016/2/12* Babarmahal, Kathmandu 588.14
25 Siddhartha Bank Ltd. 2016/7/21* Hattisar, Kathmandu 302.21
26 Bank of Kathmandu Lumbini Ltd. 2016/7/14* Kamaladi, Kathmandu 457.69
27 Civil Bank Ltd. 2016/10/17* Kamaladi, Kathmandu 458.38
28 Nepal Credit and Commerce Bank Ltd. 2017/01/01* Siddharthanagar, Rupandehi 467.91
*Joint operation date after merger
Source: NRB Banking and Financial Statistics

32