PROFITABILITY RATIO ANALYSIS OF NABIL

BANK LIMITED

A Project Work Report

By

Suraj Kumar Tamang

TU Regd. No: 7-2-0927-0201-2013

Symbol No: 9270115

Shwoyambhu International 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 2017
 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 BISHNUHARI SILWAL, faculty member,
SHWOYAMBHU INTERNATIONAL COLLEGE, 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.

…………………
SURAJ KUMAR TAMANG
May, 2017

ii
 SUPERVISOR’S RECOMMENDATION

The project work report entitled PROFITABILITY RATIO ANALYSIS OF NABIL BANK
LIMITED submitted by SURAJ KUMAR TAMANG of SHWOYAMBHU INTERNATIONAL
COLLEGE, 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.

………………..
BISHNUHARI SILWAL
May, 2017

iii
 ENDORSEMENT

We hereby endorse the project work report entitled PROFITABILITY RATIO ANALYSIS OF
NABIL BANK LIMITED submitted by SURAJ KUMAR TAMANG of SHWOYAMBHU
INTERNATIONAL 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 BISHNUHARI SILWAL for guiding and inspiring me to do
this fieldwork. I would also like to thank Suman Prasad Chaudhary (Campus Chef), Hari Sharan
Chakhun (Head of Research Department) 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.

Suraj Kumar Tamang

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 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

CHAPTER I: 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

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 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)

Banking Services Rendered by NABIL

Nabil has been obtaining its objectives and targets through various kinds of banking services with
a large number of facilities. The services rendered by Nabil Bank are as follows:

• Nabil Bank provides loan, advance and overdraft to the needy person and customers against
pledge and securities
• Nabil Bank performs the agency services like, payment of subscription, rent collection,
dividend collection, interest collection etc. on behalf of the customers
• Nabil is a member of clearing house; it accepts cheque of any bank of its customers only
• It also exchanges the foreign currency i.e. sale and purchase of currency.

Beside these, various instrumental and modern technological services are provided by Nabil Bank
which are discussed below:-

• Deposits
• Guarantees
• Credit Cards
• Tele Banking
• Western Union Money Transfer
• SWIFT (Society for Worldwide Inter Bank Financial Tele- communication)
• Safe Deposit Locker

5
 • Automated Teller Machines (ATM)
• Other facilities

(http://www.nabilbank.com.np)

Objectives of the Study

The main objective of the study is to analyze financial performance of and solvency position of
this bank through use of different ratios. Other objective of this study are as following:-
• To find out the profitability of the NABIL Bank Limited.
• To analyze the profitability
• To determine factors of profitability
• To evaluate profitability ratio of NABIL Bank Ltd.

Rationale/Significance of the study

Generally, the study gives emphasis on the welfare of students while preparing fieldwork report;
they gain knowledge through their own experience enabling them to deal with problems relating
to their studies. The study also intends to let students know about required information by them.
The following are the few points that highlights of the significance of field work report:
• The fieldwork report may be useful for the library purpose so that any students want to
prepare a report can have some idea about it.
• It helps to increase the practical knowledge.
• The fieldwork report can be used as guideline while preparing a small project report.
• By analyzing the problem, it provides chances to improve
• It makes the student more creative.

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

6
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.

7
Conceptual Framework
The modern financial evaluation has greatly affected the Profitability ratio of banks’. Nowadays,
finance is best characterized as ever changing with new ideas and techniques. Only efficient
manager of the company can achieve the set up goals. If a bank does not maintain adequate equity
capital, it makes the bank more risky. If a bank has inadequate equity capital, it must be used more
debt that has high fixed cost. So any firm must have adequate equity capital in their capital
structure. The main objectives of the bank are to collect deposits as much as possible from the
customers and to mobilize into the most profitable sector. If a bank fails to utilize its collected
resources than it cannot generate revenue. Resource mobilization management of bank includes
resource collection, investment portfolio, loans and advances, working capital, fixed assets
management etc. It measures the extent to which bank is successful to utilize its resources. To
measure the bank profitability in many aspects, we should analyze its indicator with the help of
financial statements. Profitability ratio is the process of identifying the financial strength and
weakness of the concerned bank. It is the process of finding strength and weakness of the
concerned bank.

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.

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.
After calculating various ratios, we need to compare with the certain standard and draw out the
conclusion of the result. The comparison classified by Weston and Brigham into six types viz; (i)
Liquidity ratios, (ii) leverage ratios, (iii) Activity ratios, (iv) Profitability ratios, (v) Growth ratios
and (vi) Valuation ratios.

8
Profitability Ratio

Profitability ratios are related to profit. These ratios are designed to highlight the end result of
business activities. The operating efficiency of a firm and its ability to ensure adequate return to
its shareholders depends ultimately on the profits earned by it. In this regards, profitability ratios
are the measure of efficiency and the search for. These ratios measure the overall effectiveness of
management. It provides an incentive to achieve efficiency. In this report, the following
profitability ratios are used:

A. Profit Margin Ratio

The profit margin ratio, also called the return on sales ratio or gross profit ratio, is a profitability
ratio that measures the amount of net income earned with each rupees of sales generated by
comparing the net income and net sales of a company. This ratio measures how effectively a
company can convert sales into net income.

B. Exchange Gain to Total Income Ratio

An exchange gain/loss is caused by a change in the exchange rate of two currencies, such as when
an invoice denominated in one currency is paid in another. The exchange gain to total income ratio
measures total income and exchange gain ratio.

C. Return on Assets

Return on assets, is also called return on investment, which is a ratio between net profit and total
assets. This ratio measures the rate of return earned by the firm as a whole for all its investors.
Higher ratio indicates the higher return on assets or on amount contributed by investors on account
of efficient management of assets or capital.

D. Return on Equity

This ratio is also known as return on shareholders' fund and return on net worth. It measures the
relationship between net profit after tax and shareholders' equity. The main objective of this ratio
is to find out how efficiently the funds supplied by the shareholders are utilized. Higher ratio

9
reflects the more profitability enjoyed by the shareholders, where as poor or lower ratio reflects
the reverse situation.

E. Overhead to Total Income Ratio

Overhead ratio is the comparison of operating expenses and the total income which is not related
to the production of goods and service. By definition, the ratio of operating expenses to the sum
of taxable equivalent net interest income and other operating income. The overhead ratio shows
the proportion of expenses to total income which cannot be used for production of goods and
services. A company would try as much as it can to lower these expenses without it affecting the
production of goods and services so as to maintain the competition in the industry.

F. Staff Expenses to Total Income Ratio

It is the ratio of Staff Expenses to Net Income. This ratio is computed to 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.

G. Earnings per Share

Earnings per share (EPS), also called net income per share, is a market prospect ratio that measures
the amount of net income earned per share of stock outstanding. In other words, this is the amount
of money each share of stock would receive if all of the profits were distributed to the outstanding
shares at the end of the year. Earnings per share is one of the most quoted statistics for publicly
traded companies. It is the ratio of net profit after tax between numbers of common share.

H. Dividend Payout Ratio

The dividend payout ratio measures the percentage of net income that is distributed to shareholders
in the form of dividends during the year. In other words, this ratio shows the portion of profits the
company decides to keep to fund operations and the portion of profits that is given to its
shareholders. (http://www.myaccountingcourse.com/)

10
Review of Books and Journals
Further R.S. Sayers in his book Modern Banking Writers, “Ordinary banking business consist of
changing cash for bank deposits and bank deposits from one person to corporation (one depositor
to another) giving bank deposits in exchange for bill of exchange, government banks, recurred and
unsecured promises businessmen to repay. “Erich A. H. in his book has described profitability
ratio as “Profitability ratio is both an analytic and judgmental process that helps to answer the
questions that have been properly posed to and therefore, it is a mean to an end. We can stress
enough that financial analysis is an aid that allows those responsible for results to make sound
decisions. “Liquidity is other financial indicator of the business enterprises. I.M. Pandey says, "A
firm should ensure that it does not suffer from lack of liquid. And also that it is not too much highly
liquid. The failure of a company to meet its obligations, due to lack of sufficient liquidity will
result in bad credit image. Loss of creditor’s confidence, or even in low suits resulting in the
closure of the company. A very high degree of liquidity is also bad; idle assets earn nothing. The
firm’s funds will be unnecessarily tied up in current assets. Therefore, it is necessary to strike a
proper balance between liquidity and lack of liquid. “Liquidity is measured by the speed with
which a bank’s assets can be converted into cash and other current obligations. It is also important
in view of survival and growth of a bank.

Review of Some Acts Relating to Banking in Nepal

Commercial Bank Act 2031 was formulated to facilitate the smooth run of commercial banks. All
the commercial banks are functioning under this act. This act defines the bank as, "A commercial
bank is one which exchange money, deposits money, accepts deposits, grants loans and performs
commercial banking function and which is not a bank meant for co-operative, agriculture, industry
or for specific purpose."
The preamble of Nepal Bank Act 1994 clearly states the need of commercial bank in the country.
In absence of any bank in Nepal, the economic progress of the country was being hampered and
causing inconvenience to the people and therefore with the objective of fulfilling that need by
providing services the people and for the betterment of the country, this law is hereby promulgated
for the establishment of the bank and its operation. A bank shall be established under the Company
Act with the recommendation of the Rastra Bank. The bank may determine the location of its head
office with the approval of the Rastra Bank. The bank shall be an autonomous corporate body with

11
the perpetual succession. It may sue or be sued in its own name. Subject to this Act and other
current Nepal law, the bank may acquire, use and sell movable and immovable property. Any bank
may open or shift the location of, or close branches depots or other offices with the approval of
the NRB. In case any foreign commercial bank desires to open a branch, representative office or
liaison such branch under the company Act with the approval of NRB, and provisions of the act
shall apply to such foreign bank The NRB shall obtain the consent of His Majesty’s Government
before granting approval. While granting approval, NRB may prescribe condition according to the
need, and the foreign bank shall company with the conditions thus prescribed by the NRB.
(http://nrb.org.np/)

Methods of Study
Evaluating the profitability ratio of NABIL BANK in a micro level and to highlight the efforts of
the profitability ratio of these banks in the economy at the macro level forms the basic objective
of this research.
Research Design
Keeping in mind the objective of the study, descriptive cum analytical research design has
been followed. The study is based on the wide range of variables and factors influencing
profitability ratio of the bank. Comparative data banks are presented in such a way to make
the report informative to the reader.

Population and Sample

Among 28 commercial banks, NABIL Bank Limited have been selected for the present
study. Financial statements of latest 5 years (2012/13 to 2016/17) have been taken as
sample for the comparative analysis of Profitability ratio. The recommendation and
suggestions, which are derived from the study, by taking the above commercial banks as
samples, will be equally useful for the other commercial banks in Nepal.

Sources of Data
This study is based on secondary data. Secondary data can defined as the data collected
earlier for a purpose other than one currently being pursued. As a researcher I have scanned
lot of sources to get an access to secondary data which have formed a reference base to

12
 compare the research findings. Secondary data in this study has provided an insight and
forms an outline for the core objectives established. The various sources of secondary data
used for this study are newspapers, magazines, text books, marketing reports of the
company, internet, etc.

Techniques of Analysis
In the course of analysis, data gathered from the various sources will be inserted in the
tabular from according to their homogeneous nature. They are table, graph, mean, standard
deviation ratio and percentage.

Limitation of the Study

This study is conducted in partial fulfillment of the requirement for the BBS 4 th year. So, it
possesses some limitation of its own. One of the limitations of the study is; with regard to tempera
coverage of the study to arrive any meaningful conclusions regarding the trend in the pattern and
structure of financing a time service of fairly a long period are needed. But this study has covered
only last five financial year. Other limitations are as follows:
• Though there are 28 commercial banks, this study covers only one NABIL Bank Ltd.
• Being a student time and resources consentient
• Limited variable has been selected.
• Simple techniques has been used in analysis
• The qualitative factors such as growth and expansions policy of the bank quality and
general economic conditions have not been studied.

13
 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
Exchange gain to total income Ratio = × 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

𝑥̅ =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 = × 100
Total Assets

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

𝑥̅ =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.

NPAT
Return on equity (ROE) = × 100
Equity

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

𝑥̅ =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
𝑥̅ =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
Staff expenses to total income ratio = Total Income
× 100

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

𝑥̅ =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) = × 100
No.of Common Share

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

𝑥̅ =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
Dividend payout ratio = × 100
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

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