07/01/2021 Financial Analysis of NIC Asia Bank | Investopaper

Thursday, January 7, 2021

HOME NEWS BLOG ANALYSIS  STOCK MARKET ECONOMY GLOBAL NEWS नेपाली 

Investing Quote

"It is one of the great paradoxes of the

stock market that what seems too high
usually goes higher and what seems
too low usually goes lower."
William J. O'Neil

Vacancy At Investopaper

Financial Analysis of NIC Asia Bank

The brief   nancial analysis of NIC Asia Bank as performed by Investopaper team  is as follows:

Latest Update
Introduction
Forward Microfinance
NIC Bank was established on 21st July 1998. The Bank was renamed as NIC ASIA Bank after the merger of Laghubitta Proposes 31.58
NIC Bank with Bank of Asia Nepal on 30th June 2013. The merger was the rst of its kind merger between Percent Dividend
two successful commercial banks in the country.

You May Also Like: Financial Analysis of Commercial Banks of Nepal

Citizens Bank And Tinau
NIC Asia Bank is now, one of the largest private-sector commercial banks in the country in terms of Mission Development Bank
capital base, balance-sheet size, number of branches, ATM network and customer base. The Bank has Sign Final Agreement For
270 branches, 37 extension counters, 22 branchless banking, and 289 ATMs across Nepal with a network Acquisition
covering all major nancial centers of the country.

NIC Asia was recognized as”Bank of the Year-Nepal” by The Banker, Financial Times, the UK in 2007 & Aarambha Chautari
2013. Laghubitta To Acquire BPW
Laghubitta & Deurali

Board of directors and the Management team of NIC Asia Laghubitta

Bank
Synergy Power Development
The board of directors includes: Company To Invest In
Madhya Hongu Khola ‘A’
Hydropower Project (22 MW)
S.N. Board of Directors  Post

1 Mr. Tulsi Ram Agrawal Chairman

Sarbottam Cement To Float
2 Mr. Jagdish Prashad Agrawal Director IPO Through Book Building
Method
3 Mr. Ram Chandra Sanghai Director

https://www.investopaper.com/news/nic-asia-bank-financial-analysis/ 1/6
07/01/2021 Financial Analysis of NIC Asia Bank | Investopaper

4 Mr. Rajendra Aryal Director

5 Mr. Binod Kumar Pyakurel Director

6 Mr. Ganesh Man Shrestha Director

7 Mr. Trilok Chand Agrawal Director

The management team is lead by Roshan K. Neupane since December 2018. The management team of
NIC Asia Bank includes:

S.N. Management Team Functional Title

1 Mr. Roshan K. Neupane Chief Executive Officer

2 Mr. Sudhir Nath Pandey Deputy Chief Executive Officer

3 Mr. Santosh Kumar Rathi Chief Marketing Officer

4 Mr. Rajesh Rawal Chief Of Provincial Office Most Read

5 Mr. Jayendra Rawal Chief Of Provincial Office Financial Analysis of

Commercial Banks of Nepal
6 Mr. Kapil Dhakal Chief Human Resource And Chief Development
2077
Officer

7 Mr. Sudeep Khanal Chief Corporate And Priority Loans Officer

8 Mr. Arjun Raj Khaniya Chief of Public Relationship Officer Top 5 Microfinance of Nepal:
Comparative Study
9 Mr. Bishal Sigdel Chief Financial Officer

10 Mr. Dinesh Bhari Head Legal

11 Mr. Dipendra Bahadur Rajbhandari Chief Risk Officer

Top 7 Non-Life Insurance in
12 Mr. Prakash Baral Chief Credit Officer Nepal: Comparative Study

13 Mr. Raju Prasad Adhikari Head Internal Audit

14 Mr. Deepen Karki Company Secretary

Comparative Study Of 4
Related: Financial Analysis of Nabil Bank Limited Wholesale Microfinance In
Nepal
Financial Highlights of NIC Asia Bank: Last 5 Years
The performance of NIC Asia Bank based on di erent nancial indicators in the last ve years is shown
Monetary Policy 2077/78:
as:
Major Highlights &
Announcements
Deposits,loans & total assets:

In the last ve years, NIC Asia has shown satisfactory growth in deposits, loans, and Total Assets. The
deposits have grown from Rs. 44.98 billion to Rs. 139.59 billion in a period of 5 years. The loans and
advances have risen to Rs. 115.80 billion from 36.33 billion. Likewise, the bank has increased the size of
its assets to Rs. 170.94 billion from 51.50 billion in 2070/71.

Fiscal  Deposits(in billion Loans & Advances(in billion Total Assets(in billion
Year ‘Rs.’) ‘Rs.’) ‘Rs.’)

2070/71                     44.98                                36.33                           51.50

2071/72                     53.48                                42.14                           60.52 Facebook

2072/73                     69.49                                58.45                           80.46

2073/74                     86.70                                71.58                            99.27

2074/75                   139.59                                115.80                            170.94

Paid-up Capital, Net Profit & Market Capitalization:

https://www.investopaper.com/news/nic-asia-bank-financial-analysis/ 2/6
07/01/2021 Financial Analysis of NIC Asia Bank | Investopaper

In order to meet the paid up capital requirement of Nepal Rastra Bank, NIC Asia has gradually increased
Investopaper
its paid-up capital to Rs. 8.03 billion from Rs. 2.31 billion in Rs. 2070/71. However, with the rise in the 23,732 likes
capital, the bank has not been able to grow its pro t. The pro t has risen from Rs. 0.83 billion to Rs. 1.33
billion. Due to this, the market capitalization has not increased in the last 5 years. The market value has
increased by only Rs. 2.96 billion during this period. The market cap at the end of F.Y. 2074/75 stood at Like Page Share

Rs. 25.37 billion.

Fiscal Year Paid-Up Capital(in Net Profit(in Market Capitalization(in billion

billion ‘Rs.’) billion ‘Rs.’) ‘Rs.’)

2070/71 2.31 0.83 22.41

2071/72 2.66 0.68 16.41

2072/73 4.57 1.07 36.55

2073/74 6.69 1.47 29.77

2074/75 8.03 1.33 25.37

Also Read: Net Pro t of Commercial Banks in Nepal [With Ranking]

EPS, MPS, BPS & P/E ratio:

The earnings per share of the bank has declined from Rs.35.98 to Rs.16.62 at the end of the F.Y 2074/75.
This is due to the high increment of capital during this period. The net pro t has not grown as
impressively as the growth in the capital. The rise in the capital has reduced the book value per share
from 211 in 2070/71 to Rs. 145.32 in 2074/75. The market price has also declined due to the adjustment
of bonus and right shares.

Fiscal Year EPS(Rs.) Networth per share (Rs.) MPS(Rs.) P/E ratio

2070/71                                                        211.00 970                    

35.98 26.96

2071/72                                                        207.00 617                    

25.59 24.11

2072/73                                                        161.00 798                    

28.31 28.19

2073/74                                                        151.00 445                    

23.06 19.30

2074/75                                                        145.32 316                    

16.62 19.01

Dividend History:

The bank has provided a decent dividend to the shareholders in the last ve years. In the scal year
2074/75, the bank provided 10 percent bonus shares to the shareholders. In previous years, the dividend
is mainly in the form of bonus shares ranging from 20 to 40 percent per annum.

Fiscal Year Bonus(%) Cash(%) Total dividend(%)

2070/71 15.00 15.00 30.00

2071/72 39.00 2.05 41.05

2072/73 26.00 1.37 27.37

2073/74 20.00 1.05 21.05

2074/75 10.00 0.53 10.53

You May Also Like: Dividend History Of Commercial Banks Of Nepal

Return On Equity(ROE) & Return On Assets(ROA):

https://www.investopaper.com/news/nic-asia-bank-financial-analysis/ 3/6
07/01/2021 Financial Analysis of NIC Asia Bank | Investopaper

The ROE and ROA stand at 12.09 percent and 0.97 percent at the end of 2074/75. They have declined
from a high of 16.84 percent and 1.71 percent respectively.

Fiscal Year ROE(%) ROA(%)

2070/71 15.93 1.71

2071/72 13.05 1.21

2072/73 16.5 1.51

2073/74 16.84 1.64

2074/75 12.09 0.97

Financial Highlights of NIC Asia Bank: Second Qtr

2075/76
NIC Asia bank has made outstanding growth in the second quarter of F.Y. 2075/76. In a period of 2 years,
the bank has positioned itself into one of the leading banks in the banking industry. The size of deposits,
loans and assets are among the highest among the private sector banks.

Headings Second Quarter, Second % Change

2075/76 Quarter,
2074/75

Paid-up Capital(in billion ‘Rs.’) 8.83 8.03 9.96

Reserve & Surplus(in billion ‘Rs.’) 4.41 2.65 66.42

Deposits (in billion ‘Rs.’) 175.76 120.47 45.9

Loans & Advances(in billion ‘Rs.’) 149.3 100.95 47.89

Net Interest Income(in billion ‘Rs.’) 3.61 1.55 132.9

Net Profit(in billion ‘Rs.’) 1.51 0.57 164.91

Free Profit (in billion ‘Rs.’) 1.26 0.57 121.05

Earnings Per Share, EPS (Rs.) 34.31 14.24 140.94

Non Performing Loans, NPL (%) 0.3 0.26 15.38

Base rate (%) 9.33 10.55 -11.56

In the second quarter of F.Y. 2075/76, NIC Asia bank made a net pro t of Rs. 1.51 Arab which is  164%
from the corresponding quarter of the previous year. In 2074/75, the bank made a pro t of Rs. 0.57
billion in the 2nd quarter. Likewise, paid-up capital stands at Rs. 8.83 billion, reserve & surplus at  Rs. 4.41
billion. NIC Asia has deposit collection and loans of Rs. of Rs. 175.76 billion and 149.30 billion respectively
which are 45.9 percent and 47.9 percent higher than the second quarter of 2074/75. The net interest
income has also risen sharply by 132.90 percent to Rs. 3.61 billion from Rs. 1.55 billion. The free pro t
after regulatory adjustment stands at Rs. 1.26 billion. The non-performing loans stand at 0.30%. Also, the
EPS and Networth per share are 34.31 and 149.93 respectively, as of 2nd quarter 2075/76.

This indicates strong growth seen in NIC Asia in this recent one year period. At the time of the credit
crisis in the banking industry, NIC Asia pulled a miracle out of the hat by expanding its deposits, loans,
and pro t at such an exponential rate. This is encouraging for the investors, especially oriented towards
growth factor.

NOTE: Figures of FY 2074/75 are as per NFRS  and the gures of the earlier year are as per previous
GAAP. Hence, they may not be comparable.

(Investments are subject to market risks and investors are advised to do personal homework before
making any investment decision. This material is just a guideline for the investors to do further
investigations)

Read Related Contents:

An Exclusive Financial Analysis of Global IME Bank

https://www.investopaper.com/news/nic-asia-bank-financial-analysis/ 4/6
07/01/2021 Financial Analysis of NIC Asia Bank | Investopaper

Financial Analysis of Himalayan Bank Limited

Standard Chartered Bank Nepal: Exclusive Financial Analysis

Share This Via:

Facebook Tweet Gmail

← NMB Bank debenture 2085 closing today

Rasuwagadhi IPO from Baisakh 6; how much can you apply →

Investopaper

Investopaper is a nancial website which provides news, articles, data, and reports
related to business, nance and economics.

2 thoughts on “Financial Analysis of NIC Asia Bank”

 sanjana shrestha
 May 12, 2019 at 4:55 am
 Permalink

Can I get the data for the calculation of nancial ratios?

 Reply

 Rakesh kumar yadav

 November 30, 2019 at 1:56 pm
 Permalink

Excellent

 Reply

Leave a Reply

Your email address will not be published. Required elds are marked *

Comment

Name *

Email *

https://www.investopaper.com/news/nic-asia-bank-financial-analysis/ 5/6
07/01/2021 Financial Analysis of NIC Asia Bank | Investopaper

Website

Post Comment

Investopaper Info External Links

Investopaper.com is a nancial About Us Nepal Stock Exchange

website which provides news,
Our Team Securities Board Of Nepal
articles, data and reports related to
Contact Mero Share
business, nance and economics.
Advertise Nepal Rastra Bank
Promoted by: MGI Group Pvt. Ltd. Privacy Policy Ministry Of Finance
Director: Mr. Kul Bahadur Thapa. Terms Of Use Beema Samiti
Registration No. (Department of
Information): 1223/075-76

Copyright ©2018-2019 | Designed by Manish Thapa & Saurav KC With Investopaper

  

https://www.investopaper.com/news/nic-asia-bank-financial-analysis/ 6/6