Sinamangal, Kathmandu

A project report on

Financial analysis of Nepalese Commercial Banks

Submitted to:

Mr. K.B. Manandhar

Faculty, Ace Institute of Management

Submitted by:

Satyendra mani Tripathi

15th August 2010

Introduction

A bank is a financial institution which accepts deposits from the public and in turn provides
loans to the needed one. They accept the deposit from the public or firm at the low interest rate
and gives to the needed one at higher interest rate, which is the main source of income for the
bank. Now a day’s banks are consider as the most important financial institutional in the
economy and as well as in the business world. In other word banks are those financial institution
that offer widest range of financial services especially credit, saving and payments service.

The evolution of banking is introduced in Nepal in 1994 BS after the establishment of Nepal
Bank Limited in that year. After the establishment of “Nepal bank limited” Nepal entered in the
world of banking. It was a public enterprise. In 1955 AD the first Central Bank- Nepal Rastra
Bank was established with the objectives of supervising, protecting and directing the functions of
commercial banking. Just ten years later in 1966 ad another commercial bank fully owned by
government named Rastriya Banijay Bank was established under Banijay Bank Act 1946. With
the pace of time, another bank was established. It was Agriculture Development Bank under
Agriculture Development Bank Act 1967, with the purpose of enhancing agriculture sector of the
country.

Banking industry is one of the most important sectors of an economy. It mobilizes the resources
of finance. Banks assist the organization from production level to the customer service level. It
also assists in developing the infrastructure as well as other financial activities of the government
owned corporations.

Banking system is the nerve of the economy. Therefore economic development of a country is
not possible without the banking sector. It provides opportunities for the different sector of the
business, which are essential in the economic development. Currently there are 28 commercial
banks in operation and some are in the pipeline of establishment whereas more than 200 deposit
taking institution under license of NRB and thousands under the cooperative act.
The financial analysis under the CAMEL setting of different financial Institution are given with
respect to different headings of CAMEL.

Capital:
Capital represents the owners stake in the bank and it serves as a cushion for depositors and creditors to
fall back in case of losses. It is considered to be a long term source of funds. Minimum capital
requirement for the domestic and foreign banks is prescribed by Central Bank/regulator . Capital has
been measure with the help of Capital Adequacy Ratio.

Name of bank Date of Capital adequacy Capital adequacy ratio (2010)

operation ratio(2009)
JANATA 4 month 309.20%
LUMBINI 11 yr 11 month 12.40% 24.20%
DCBL 1 year 9 month 15.30% 20.20%
SCBNL 22 year 5 month 14.70% 17.20%
ADB\N 41 year 5 month 10.40% 17.00%
LAXMI 7 year 8 month 12.60% 15.40%
KIST 9 month 15.00%
NSBI 16 year 11 month 11.70% 13.40%
NICB 11 year 11 month 12.90% 13.10%
NCCB 14 year 2 month 12.50% 13.00%
KUMARI 8year 8 month 12.90% 12.70%
CITIZENS 2 year 10 month 14.10% 12.00%
SUNRISE 3 year 2 month 10.00% 11.80%
PRIME 3 year 1 month 10.10% 11.70%
NBBL 15 year 10 month -8.20% 11.50%
BOK 14 year 7 month 11.40% 11.30%
BOA 2 year 2 month 15.60% 11.10%
NABIL 25 year 11 month 11.40% 10.90%
GLOBAL 2 year 5 month 13.50% 10.80%
NIBL 23 year 6 month 12.50% 10.70%
HBL 16 year 5 month 11.90% 10.70%
MBL 10 year 2 month 12.70% 10.40%
SBL 8 year 4 month 10.30% 10.30%
NBL 73 year 3month -24.70% -10.40%
RBB 43 year 5 month -29.90% -28.10%
NMB 1 year 10 month 19.60% 18%
EBL 16 year 2 month 10.70% 11.5%

Name of the bank Capital adequacy Capital adequacy Comparison Remarks

ratio(previous year) ratio(this year)
NBL -24.7% -10.4% -14.30% Increasing
RBB -29.9% -28.1% -1.80% decreasing
NABIL 11.4% 10.9% 0.50% decreasing
NIBL 12.5% 10.7% 1.80% decreasing
SCBNL 14.7% 17.2% -2.50% increasing
HBL 11.9% 10.7% 1.20% decreasing
NSBL 11.7% 13.4% -1.70% increasing
NBBL -8.2% 11.5% -19.70% increasing
EBL 10.7% 11.5% -0.80% increasing
BOK 11.4% 11.33% 0.07% same
NCCB 12.5% 13% -0.50% increasing
NICB 12.9% 13.1% -0.20% increasing
Lumbini 12.4% 24.2% -11.80% increasing
MBL 12.7% 10.4% 2.30% decreasing
Kumari 12.9% 12.7% 0.20% decreasing
Laxmi 12.6% 10.4% 2.20% decreasing
SBL 10.3% 10.3% 0.00%
ADB/N 10.4% 17.0% -6.60% Decreasing
Global 13.5% 10.8% 2.70% Increasing
Citizen 14.1% 12.0% 2.10% Increasing
Prim 10.1% 11.7% -1.60% Decreasing
Sunrise 10.0% 11.8% -1.80% Decreasing
BOA 15.6% 11.1% 4.50% Increasing
DCBL 15.3% 20.2% -4.90% Decreasing
NMB 19.6% 18% 1.60% Increasing
KIST 15%
JANATA 309.2%

The trend of capital adequacy ratio is as given below:

The capital adequacy ratio of the banks has been increasing in the year 2010 in compare to the
previous year as well as it is more constant to every bank i.e. mainly all the banks has same level
of capital adequacy which is actually mandated by the regulator i.e. Nepal Rastra Bank.

From the table we can see that there are three category like, CAR of Janata Bank of more than
300% wheras the regulator has set the standard of 10% it is because janata bank is new in the
operation has not invested in riskya assets as the aset is les risky so as the capital CAR is high.
Same way next catregory is of new upgraded bank like NMB, DCBL are more than the
regulatorary frame work of 10% i.e. nearly 17-20 ranges because it take time to actually gat feet
in the market. SCBL has 17% of CAR because of investme ti treasury bills and other banks has
made to the regularlary framwork.

The two state owned enterprise i.e. RBB and NBL are only banks which actually has negative
CAR and is in the process of restructurng in world bank assistance.

Assets:
Assets are those things which are acquired by the banks for the operation of the business. The
quality of the bank’s assets tells a lot about the performance of the bank and this is the main
indicator to show the difference between good and bad bank. The asset is measured with the help
of NPL to total loan.

S.N. Name of bank NPL to Total NPL to Total

loan (2009) Loan (2010)
1 NBBL 29.90% 15%
2 RBB 18.00% 12.10%
3 ADB/N 10.80% 9.00%
4 LUMBINI 9.90% 4.70%
5 NBL 10.10% 4.10%
6 HBL 2.00% 2.90%
8 NABIL 1.10% 1.60%
9 NSBI 2.60% 1.50%
10 BOK 1.70% 1.40%
11 Sunrise bank 0.20% 1.40%
12 MBL 3.10% 1.30%
13 DCBL 1.50% 1.30%
14 Laxmi 0.10% 1.20%
15 NICB 0.90% 1.10%
16 Kumari 0.80% 0.60%
17 SCBNL 0.70% 0.60%
18 SBL 0.50% 0.60%
19 NIBL 1.00% 0.50%
20 NMB 0.90% 0.40%
21 EBL 0.50% 0.40%
22 Prime 0.00% 0.30%
23 KIST 0% 0.30%
24 Global 0.10% 0.20%
25 BOA 0% 0.20%
26 JANATA 0% 0%
27 NCCB 9.10% 2.5%
23 Citizens 0.00%

The quality of the loans and advance is known by NPL to the total loan amount of the bank. The
greater percentage would mean that there is worse loan totaling to its loan portfolio. Such bad
loans have to be paid from Loan Loss Provision which has to be separated from the profit. If that
is also not sufficient, the bank will have to use its reserve. And even if that is not sufficient to
cover all the loans, then the bank will have to make use of its supplementary capital and its core
capital at the end. This will prove that the bank is completely failed.

Comparing the NPL of both the years, we can see that the Nepal Bangladesh Bank has the
greatest NPL of 29.9% and this rate has been decreased to certain extent to 15% but still it tops
the chart. This is a tremendous improvement seen on part of NB Bank. The management under
close supervision of NRB has recovered much loan. Same way RBB is in second and its position
is nearly constant. The three state owned enterprises are facing high NPL i.e ADBL in thethird
position followed by lumbini bank. The NPL of lmbini has decrease from 9.9% to 4.7% which
is good things for the bank under new management after NRB ok control of the team. The bank
is now expanding all over the country from earlier four branch to now nearly 13 branches and
continuing to expand in near future.

Some of the banks do not have any bad loans so this will make their NPL 0%. These banks are
new banks so they might face the weight of NPL during the later phase of their operation. In year
2009, most of the bank has range of 0.01% to 0.09%. But in year 2010, most of bank has NPA%
in range of 0.2% to 1.6%. While some has in range of 2% and some has in 4%. The lower the
N{L beneficial for ank. The NPL should not exceed 5% which is benchmark in the industry.

Deposit:
For 2009
S.n Name of the Bank Deposit Market
Share
1 Rastriya Banijya Bank 60672229 12.07%
2 Nepal Bank Limited 42604073 8.48%
3 Nepal Investment Bank Limited 42476024 8.45%
4 Nabil Bank Limited 35776971 7.12%
5 Standard Chartered Bank Nepal 33637137 6.69%
Limited
6 Agricultural Development Bank 33087598 6.58%
Limited
7 Himalayan Bank Limited 32308130 6.43%
8 Everest Bank Limited 29659503 5.90%
9 Nepal SBI Bank Limited 26329441 5.24%
10 Bank of Kathmandu Limited 17473532 3.48%
11 Kumari Bank Limited 15561725 3.10%
12 Nepal Industrial & Commercial Bank 14101445 2.81%
Limited
13 Siddharth Bank Limited 13605437 2.71%
14 Laxmi Bank Limited 13329608 2.65%
15 Machhapuchhre Bank Limited 13097934 2.61%
16 Sunrise Bank Limited 10042465.9 2.00%
17 Nepal Bangladesh Bank Limited 9924874 1.97%
18 Prime Commercial Bank Limited 9280870.4 1.85%
19 Citizens Bank International Limited 9198236 1.83%
20 Nepal Credit and Commercial Bank 8504110 1.69%
Limited
21 Global Bank Limited 7651932 1.52%
22 Bank of Asia Nepal Limited 6623192 1.32%
23 DCBL Banka Limited 6157039 1.23%
24 Lumbini Bank limited 6141913 1.22%
25 NMB Bank Limited 5313203 1.06%
Total Deposit 502558622.3

The main function of the banks are mobilizing deposit for which they have a strong base of
deposit which is been collected from genera public or institution or firm who has surplus of fund.
The money transferred to the customer’s account at any financial institution is called deposit.
Deposits are very important in terms of proper functioning of the bank. It can also be said that
the banks with higher deposit could give some hint about that bank being more successful/strong.

The above data shows that Rastriya Banijaya Bank has the highest deposit with market share of
12.07% followed by Nepal Bank limited 8.48%. Despite of the negative CAR these two state
owned enterprises hold the largest deposit base because of trust of the people to this entity and
also largeset branch network and presence in all over the Nepal with also rural settings.
We can also see that though Lumbini Bank has been in operation for 11 years, it has the least
deposit.
Nepal Investment bank is the largest collctor of deposit followed by Nabil bank, standard
charteres and Agriculture development bank. They hold 8.45%,7.12%, 6.69% and 6.58%
respectively.

For 2010
S.n Name of the Bank Deposit Market
Share
1 Rastriya Banijya Bank 61209658 10.45%
2 Nepal Investment Bank Limited 47667851 8.13%
3 Nabil Bank Limited 42522845 7.26%
4 Nepal Bank Limited 40800815 6.96%
5 Himalayan Bank Limited 38047576 6.49%
6 Everest Bank Limited 34333197 5.86%
7 Standard Chartered Bank Limited 33074592 5.64%
8 Nepal SBI Bank Limited 31355709 5.35%
9 Agricultural Development Bank Limited 30897748 5.27%
10 Siddharth Bank Limited 19430770 3.32%
11 Bank of Kathmandu Limited 19161126 3.27%
12 Laxmi Bank Limited 16875165 2.88%
13 Machhapuchhre Bank Limited 16608624 2.83%
14 Kumari Bank Limited 16085699 2.74%
15 Prime Commercial Bank Limited 15255660.9 2.60%
16 Kist Bank Limited 14689982 2.51%
17 Sunrise Bank Limited 14286101.4 2.44%
18 Nepal Industrial and Commercial Bank 13843915 2.36%
Limited
19 Citizens Bank International Limited 13480947 2.30%
20 Global Bank Limited 13444069 2.29%
21 Bank of Asia Nepal Limited 11519485 1.97%
22 Nepal Credit and Commercial Bank 9784169 1.67%
Limited
23 Nepal Bangladesh Bank Limited 9318284 1.59%
24 NMB Bank Limited 9230815 1.58%
25 DCBL Bank Limited 7596490 1.30%
26 Lumbini Bank Limited 5470811 0.93%
27 Janata Bank Nepal Limited 11691 0.002%
Total 586003795.3

For the year 2010, it is again Ratriya Banijya Bank (RBB) which has the highest market share
regarding the deposit i.e. 10.45%. Comparing the deposits of the banks of both the years, we can
see that RBB has the highest amount of deposit unlike any other banks. Some the new banks and
also those institutions which have been transformed into commercial banks also has been fine in
keeping up the pace. Other banks which have been operating since a long time are also in the
right track in terms of collecting the deposits.
The second largest depositor collector i.e. Nepal bank is being replaced by private enterprise i.e.
Nepal Investment Bank followed by Nabil Bank. The state owned enterprise is on forth position.
Standard chartered had also slipped its earlier [position of fifth to Himalayan Bank.
Loans and advances:
For 2009:
S.NO. Name of the banks Loans and
Advances(13/04/2009)
1 NIBL 34417570
2 ADB/N 30468250
3 RBB 28853662
4 NABIL 26473375
5 HBL 24342540
6 EBL 22332411
7 NBL 18502475
8 BOK 14309401
9 NSBL 14246451
10 SCBNL 14050375
11 KUMARI 13501387
12 SBL 13471067
13 NICB 12963458
14 LAXMI 12207677
15 MBL 10687284
16 PRIME 9061876.7
17 SUNRISE 7708345.6
18 CITIZENS 6976211
19 NCCB 6717897
20 GLOBAL 6690102
21 NBBL 6668809
22 BOA 6181553
23 DCBL 6097179
24 LUMBINI 5463619
25 NMB 4071102
26 KIST
27 JANATA

Through proper mobilization of the funds in various sectors, banks play an important role in
sectoral development as well The majority of the income earned by any banks and financial
institution is through loans and advances. Though RBB is the largest deposit collector it is not
the highest in mobilizing it. The largest loan base is of Nepal Investment Bank followed by
ADBL, Nabil and RBB. They also make huge amount of profits due to loans and advances.

Though such a famous and profit making international bank, Standard Charted Bank have very
little amount in giving out the loans. The reason for this may come from giving out the loans by
making sure that it is safe or in other words they may have a proper loan appraisal system which
makes sure that they don’t incur losses. Though DCBL has been operating for few years, they
have been able to give out their loan in a huge amount comparing to the years of their operation.
On the other hand Lumbini Bank is not doing quite well in mobilizing their lending process in
compare to the years of their operation as they were busy with non performing assets.
For 2010
S.NO. Name of the banks Loans and Advances
(13/04/2010)
1 NIBL 41368692
2 RBB 35991725
3 ADBL 34311849
4 NABIL 34109712
5 HBL 30622847
6 EBL 28703719
7 NBL 23902790
8 NSBL 17760741
9 BOK 16924839
10 SBL 16840029
11 SCBNL 16278498
12 MBL 15349808
13 KUMARI 15028978
14 LAXMI 14341379
15 NICB 13947250
16 PRIME 13160487.1
17 SUNRISE 12283143.7
18 GLOBAL 12247435
19 CITIZENS 11344039
20 BOA 10843853
21 NBBL 10033524
22 NCCB 8708148
23 DCBL 7429088
24 NMB 7422734
25 LUMBINI 5516895
26 KIST 1200163
27 JANATA 0

Through the data of 2010, the loan data is quite similar to the year 2009. NIBL heads in this
sector for consecutively but ADBL is not able to maintain its 2nd position and loss to RBB who
gain from earlier fouth position. In the same way we can see KIST Bank has started to give away
the loans where as Janata Bank has not been practicing the loan giving activities.

So we can see that the overall loan and advances given by all the banks has increased to certain
extent. NIBL ranks high in giving away the loan in with 9.66% of increment in the loan
portfolio. We can see that NMB, though they have very little money given out as a loan in the
year 2009, they have been successful to increase that amount of giving ratio by 82%. Same
applies to other new banks such as Global Banks and all.

Fig. loans and advance

Share Price:

For 2009
S.n Name of the Bank Year of operation Share Price
1 Standard Chartered Bank Limited 22 years 5 months 5900
2 Nabil Bank Limited 25 years 11 4650
months
3 Everest Bank Limited 16 years 2 months 2305
4 Nepal SBI Bank Limited 16 years 11 1845
months
5 Himalayan Bank Limited 16 years 5 months 1720
6 Bank of Kathmandu Limited 14 years 7 months 1645
7 Nepal Investmant Bank Limited 23 years 6 months 1236
8 Nepal Industrial and Commercial Bank 11 years 11 1002
Limited months
9 Siddhartha Bank Limited 8 years 4 months 950
10 Kumari Bank Limited 8 years 8 months 638
11 Citizens Bank International Limited 2 years 10 months 615
12 Global Bank Limited 2 years 5 months 580
13 Bank of Asia Nepal Limited 3 years 2 months 502
14 Machhapucchhre Bank limited 10 years 2 months 441
15 NMB Bank Limited 11 years 11 434
months
16 DCBL Bank Limited 1 year 9 months 413
17 Lumbini Bank Limited 11 years 11 412
months
18 Kist Bank Limited 9 months 351
19 Nepal Credit and Commercial Bank 14 years 2 months 320
Limited
20 Nepal Bangladesh Bank Limited 15 years 10 month 255

In the year 2009, the stock price of Standard Chartered Bank has topped the list by Rs. 5900 for
each share at the end of 2rd quarter. Some of the banks have their share prices higher than of
those who have been in the scene for longer period of time.
The lowest share price is that of Nepal Bangladesh Bank. They have been in operation for so
many years but their share price does not reflect because of their not performing at par. This may
be because of the huge controversy that they had for which NRB had to take control.

For 2010
S.n Name of the Bank Share Price
1 Standard Chartered Bank Limited 2925
2 Nabil Bank Limited 2160
3 Everest Bank Limited 1500
4 Bank of Kathmandu Limited 850
5 Himalayan Bank Limited 830
6 Nepal SBI Bank Limited 750
7 Nepal Investmant Bank Limited 710
8 Nepal Industrial and Commercial Bank 635
Limited
9 Laxmi Bank Limited 525
10 Citizens Bank International Limited 512
11 Prime Commercial Bank Limited 478
12 Siddhartha Bank Limited 435
13 Kumari Bank Limited 430
14 Machhapucchhre Bank limited 299
15 Lumbini Bank Limited 290
16 NMB Bank Limited 281
17 Bank of Asia Nepal Limited 265
18 Sunrise Bank Limited 260
19 Nepal Credit and Commercial Bank Limited 257
20 Global Bank Limited 255
21 DCBL Bank Limited 253
22 Nepal Bangladesh Bank Limited 226
23 Kist Bank Limited 207

We can see that the bank topping the list with maximum amount of share price is still Standard
Chartered Bank. It is followed by other banks such as Nabil Bank, Everest Bank etc.

We can also see that few banks have been listed into the stock exchange. With this KIST Bank
happens to be the lowest in the group probably too much concentration in real estate also it has
low earning per share. The dividend last year was only 5%.

The up and down of the share price is the outcome of various effects such as political,
economical and even social. Anyone of these individual factors could have a serious impact on
the share prices of the banks. So the prices of the shares increases and decreases in response to
these factors only. For instance, the recent event of selecting the prime minister has been taking a
very long time. This has a negative impact on the economy and it has adversely affected the
share prices in a greater way.

The share market collapsed i.e. the SCBL which was 5900 is being selling at 2950 which make
the share market is down. The Nepse has slips to 460 from more than 600 points earlier. It
because of margin lending which was curb by NRB directives same way many factors has
contributed like political instability, liquidity crunch, etc. Almost stock of evey banks has sliped
from earlier position.

Liquidity
Liquidity is the life blood for the financial assets as it functions of turning liability into assets. As
there are small/ big deposit in the bank and the depositor can withdrawal from bank at any time.
There should be cushion i.e. as liability is turn into assets it is necessary for banks to keep certain
percentage so that it can provide cash when request is made against it. Too less liquidity can
hamper the goodwill of the company whereas too more can result in loss of opportunity to the
bank. So appropriate position should be maintained. The 70-75% is the international norms in
CD ratio which is followed throughout the world. Liquidity is measure with the help of credit-
deposit ratio.

For 2009
S.NO Name of the Banks CD Ratio 2009 in %
1 SBL 90.81
2 PRIME 89.09
3 NLCB 87.71
4 LAXMI 83.46
5 DCBL 81.33
6 BOA 80.7
7 LUMBINI 80.68
8 KUMARI 78.87
9 ADB/N 77.52
10 GLOBAL 77.12
11 BOK 74.73
12 MBL 72.63
13 NCCB 70.86
14 EBL 69.71
15 NBBL 68.41
16 CITIZENS 68.14
17 NMB 61.89
18 RBB 61.77
19 NSBL 50.94
20 NBL 49.38
21 NIBL 36.66
22 HBL 33.09
23 NABIL 26.65
24 SCBNL 18.84
25 SUNRISE 16.19
26 KIST
27 JANATA

Interpretation:
From the table we can find out that Siddhartha Bank has given the highest credit in response to
the deposit it has collected. Prime Bank comes after Siddhartha Bank in terms of giving out the
credit out of their deposit.
We can see that the data for KIST Bank and Janata Bank could not be recovered. Sunrise Bank
has the lowest CD ratio in the table. This particularly shows that some banks focus more on other
investment possibilities than in loans and advances.
For 2010
S.NO. Name of the Banks CD Ratio this year (2010) in %
1 SBL 99.01
2 NBBL 89.37
3 MBL 88.4
4 NLCB 88.15
5 BOA 84.84
6 KUMARI 83.79
7 GLOBAL 82.65
8 ADB/N 81.64
9 LUMBINI 79.72
10 BOK 79.54
11 NIBL 78.8
12 PRIME 78.21
13 NCCB 77.55
14 DCBL 77.46
15 SUNRISE 77.25
16 EBL 77.23
17 CITIZENS 76.38
18 LAXMI 0.758
19 HBL 73.7
20 KIST 73.18
21 NABIL 73
22 RBB 71
23 NMB 67.8
24 NBL 66
25 NSBL 52.54
26 SCBNL 44.09
27 JANATA 0

The proportion of Loan- Assets created by banks from the deposits received is called CD ratio.
CD ratio is actually an important tool to measure the liquidity position of the banks. The general
rule says that the banks should have the CD ratio from 70% to 80%. This indicates that the banks
are properly liquid.
We should know that more the CD ratio, more funds the bank has been using and its liquidity
position will be going down.

From the above table we can see that the liquidity position of Siddhartha Bank has been
increasing. The CD ration has been increased from 90.81% to 99.01%. This proves that the bank
has been growing using its deposits and giving out credit in a huge manner.
The matter of CD ratio is quite not relevant in context of our country. in foreign countries, they
have put some restrictions over CD ratio and they also make sure that such ceiling should not be
crossed by any banks. This is to make sure that the economy as a whole would not be hampered
and banks also would have better positions.
The standard of CD ratio should by 70 -75% as per international norms but the some Nepalese
bank have nearly 100% and 10 banks have CD ratio more than 80% which can be mirror to th
liquidity crisis among Nepalese bank.
Earning

Without motive of earning non of private entity or business activity exist. So, banks are als
established to earn profit. We can measure the earning with the help of net profit.

For 2009

S.NO. Name of the Banks Net Profit 2009 in Rs

1 RBB 1548244
2 NBBL 939223
3 ADB/N 904471
4 NBL 876572
5 SCBNL 711011
6 NABIL 658621
7 NIBL 650840
8 HBL 543006
9 EBL 447909
10 BOK 332963
11 LUMBINI 317080
12 NCCB 291533
13 NICB 251307
14 NSBI 225183
15 KUMARI 176902
16 SBL 161220
17 LAXMI 139972
18 PRIME 93034.5
19 DCBL 74361
20 SUNRISE 66157.9
21 CITIZENS 65212
22 GLOBAL 58456
23 NMB 55937
24 MBL 39650
25 BOA 32033

For 2010

S.NO. Name of the Banks Net Profit 2010 in Rs.

1 RBB 1253436
2 NIBL 869259
3 ADB/N 809848
4 NBBL 795825
5 SCBNL 792418
6 NABIL 772799
7 EBL 631869
8 NBL 595794
9 BOK 374363
10 HBL 360971
11 NCCB 346457
12 NICB 318698
13 NSBI 305385
14 LUMBINI 297843
15 LAXMI 247942
16 PRIME 244172.4
17 KUMARI 225830
18 SBL 163971
19 BOA 141081
20 CITIZENS 140716
21 SUNRISE 137086.4
22 DCBL 116789
23 NMB 104460
24 MBL 95767
25 KIST 73411
26 GLOBAL 68940

Fig: Net profit

Rastra Banijiya Bank is in profit for both years i.e. 2009 and 2010. In the same way, NIBL has
also done a very good job in increasing its profits. Same way Nepal bangladesh profit is also sky
rocketing its mainly because that their Non performing loan is eing increased i.e. the ddebts
portion has been increase.

Talking about the new and emergin banks, all of them have done well in making the profit.
Despite of liquidity cruch the profit of the anks is being increased.
Conclusion

• Rastri Banijiya Bank is the highest collector of deposit with market share of 10%. The
reason for having such a huge amount of deposit may be because of the trust on these
government banks.

• Nepal investment is the second in the deposit position in current year as well as first
among the private enterprise.

• Nepal Investment bank has the highest amount of loans and advances. They have been
keeping their amount of giving out loans quite high.

• Standard Chartered Bank has the highest amount as their share price. Its list the chaart.

• Capital adequacy ratio is maintained by all banks. The RBB and Nepal bank are only
behind it with neagative CAR and are in restructuring phase.

• NPL is not good for any banks. The quality of the loans and advance is known by NPL to
the total loan amount of the bank. NB Bank has the highest NPL followed by RBB and
ADBL

• Bank should maintain their CD ratio because in case of emergency, they should be able to
give back the deposits of its customer as and when they ask about it. So they should only
lend particular percent from their deposit. In case of this report, it has been found that
Siddhartha Bank has the highest CD ratio nearly 100% is prone to liquidity crisis. This
shows that they have very compact liquidity position.

• The net profit of Rastriya Banijiya Bank is in an increasing trend in both the years. Nepal
Bangladesh Bank has also highest profit in year 2009 because of recovery of Non
performing assets.

• In case of the new banks, BOA has tremendously increased its profits.