DECLARATION

I hereby declare that the project work entitled " Profit Planning and
Control of Nepal Investment Bank Limited " submitted to the Faculty of
Management, Tribhuvan University, Kathmandu is an original Peace of
work under the supervision of Mr. ………………. lecturer of
Arunodaya College, Gitanager, Chitwan and it is submitted in partial
fulfillment of the requirement for the degree of Bachelors of Business
Studies (BBS). This project work report has not been submitted to any
other university or institution for the award of any degree of diploma.

……………………………….
Arunodaya College
Gitanagar, Chitwan
Date : ……………………
 SUPERVISOR'S RECOMMENDATION

The project work report entitled Profit Planning and Control of Nepal
Investment Bank Limited" submitted by …………………………………
of Arunodaya College, Gitanagar, Chitwan, 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 award of the degree of Bachelor of Business
Studies (BBS). I, therefore, recommend the project work report of
evaluation.

…………………………………….
Mr. …………………….
Arunodaya College
Date : ……………………
 ENDORSEMENT

We hereby endorse the project work report entitled Profit Planning and
Control of Nepal Investment Bank Limited" submitted by
………………….. of Arunodaya College, Gitanagar, Chitwan. in partial
fulfillment of the requirements for award of the Bachelors of Business
Studies (BBS) for external evaluation.

…………………………. …….
………………………
Mr………………. Mr. Kumar Raut
Chairman, Research Committee for Principal
Arunodaya College Shree Arunodaya College

Date …………….
 ACKNOWLEDGEMENT

This project work entitled Profit Planning and Control of Nepal Investment Bank
Limited has been prepared as partial requirement for the Bachelors of Business
Studies. It would have been almost impossible to complete this academic eork
without co-operation and help from other people beside me.

I am greatly obliged to my report advisor Mr…………………………… , Lecturer

of Shree Arunodaya College, Gitanagar for providing continuous guidelines,
valuable comments and constructive suggestions.

My Special thank goes to Principal Mr. Kumar Raut, Mr, ……………………….

(Research Head) and Mr. ………………… lecturer of Shree Arunodaya College
for their proper encouragements and cooperation.

Finally I would like to a lot of thank whole NIBLL Family for help in providing
all the necessary actual data and information. At last but not least, I wish to
express my deep appreciation to Mr. Madhu Khanal who helped me in computer
typing and designing

Thank you,

………………..
BBS 4th
Year
 TABLE OF CONTENTS
Title Page i
Declaration ii
Supervisor Recommendation iii
Endorsement iv
Acknowledgement v
Table of Contents vi
List of Tables vii
List of Figure viii
List of Abbreviations ix
CHAPTER –I : INTRODUCTION
1.1 Background of the study 1
1.1.1 Brief introduction of Nepal Investment Bank Limited 2
1.2 Statement of Problem 2
1.3 Objective of the Study 3
1.4 Rational of the Study 3
1.5 Review of the Previous Studies 4
1.6 Research Methods 5
1.7 Limitations of the Studies 14

CHAPTER – II: RESULTS AND ANALYSIS

2.1 Data Presentation 15
2.1.1 Statistical Analysis 21
2. Major Finding of Studies 29

CHAPTER – III: SUMMARY AND CONCLUSION

3.1 Summary 32
3.2 Conclusions 32

BIBLIOGRAPHY
APPENDICES
 LIST OF TABLES

Table Page
No. Titles No.
2.1 Deposit, Lending and Frowth Status of NIBL 15
2.2 Loan Disbursement and Deposit Collection Ratio 16
2.3 Current Ratio 17
2.4 Total Debt to Total Assets Ratio 18
2.5 Total Assets to Net Worth Ratio of NIBL 18
2.6 Return on Loan and Advance 19
2.7 Return on Total Assets Ratio 20
2.8 Return on Equity Ratio 20
2.9 Total Interest Earned to Total Assets Ratio 21
2.10 Correlation between Deposit and Loan and Advances 22
2.11 Correlation between Deposit and Total Investment 22
2.12 Correlation between Loan and Advance and Net Profit 23
2.13 Correlation between Investment and Net Profit 24
2.14 Trend Analysis of Total Deposit 25
2.15 Trend Analysis of Total Loan and Advance 26
2.16 Trend Analysis of Investment 27
2.17 Trend Analysis of Net Profit 28

LIST OF FIGURES
Figure
Page
No. Titles No.
2.1 Growth of Deposit and Lending of NIBL 16
2.2 Trend Line of Total Deposit of NIBL 25
2.3 Trend Line of Loan and Advance 26
2.4 Trend Line of Investment of NIBL 28
2.5 Trend Line of Net Profit of NIBL 29
 ABBREVIATIONS

A.M. - Arithmetic Mean

BEP - Break Even Point
C.V. - Coefficient of Variance
CP - Commercial Paper
CRR - Credit Risk Ratio
e.g. - Example
GAP - 'Good', 'Average' or 'Poor'
GC - Gorkhapatra Corporation
ISO - International Organization for Standardization
NIBL - Nepal Investment Bank Limited
NRB - Nepal Rastra Bank
NTL - National Trading Limited
OCC - Office of the Comptroller of the Currancy
ROA - Return on Assets
SD - Standard Deviation
SHE - Shareholder's Equity
TU - Tribhuvan University
U.S. - United States
 CHAPTER –I
INTRODUCTION
1.1 Background

Profit is one of the highest areas of expense for business or financial

institutions because marketing efforts are directly related to getting leads for
the business. The company's marketing efforts are categorized into various
areas, and each of these need to be evaluated for the employees and resources
required fulfilling them. If the marketing costs are not estimated properly it
could affect profits, and the company will unnecessarily spend more on
marketing. Profit planning helps avoid this scenario (Pandey, 2011).

The goals of business owners include ensuring that the business makes
profits year-on-year, and that it is sustained over a period of time for growth.
The business plan includes a forecast that tries to anticipate the business
growth and determine the revenue that could be generated in that particular
year.
Profit planning and forecasting enables a comparison between projected
costs and spends, and the actual costs that your business is incurring. This
can help your team decide on improving cost efficiency and closing up the
gaps. It also enables better decision-making like which resources to invest in
or cut costs from.
A Profit plan is an advance decision of expected achievement based on the
most efficient operating standards in effect or in prospect of time. It is
established against which actual accomplishment is regularly compared. It
involves a study of what a business cost and expenses should be and will be
at different level of operations and it include a study of the resultant effect
due to this hanging relationship between volume and cost.
This project report has been concerned with profit planning and control of
Nepal Investment Bank Limited.
1.1.1 Brief Introduction of Nepal Investment Bank Limited
Nepal Investment Bank Ltd. (NIBL), previously Nepal Indosuez Bank Ltd.,
was established in 1986 as a joint venture between Nepalese and French
partners. The French partner (holding 50% of the capital of NIBL) was
Credit Agricole Indosuez, a subsidiary of one of the largest banking group in
the world. Later, in 2002 a group of Nepalese companies comprising of
bankers, professionals, industrialists and businessmen acquired the 50%
shareholding of Credit Agricole Indosuez in Nepal Indosuez Bank Ltd., and
accordingly the name of the Bank also changed to Nepal Investment Bank
Ltd. At present the Bank's shareholding pattern is promoters 69 percent and
general public were 31 percent. NIBL, which is managed by a team of
experienced bankers and professionals having proven track record, can offer
you what you're looking for.
1.2 Statement of the Problems
A commercial bank's major activities include mobilization of resources,
which involves cost, and profitable deployment of those resources, which
generates incomes. In Nepal, the industrialization is still in its early stages
therefore, the concept of profit planning has not even been familiar in the
most of the business concerns including commercial banks. Commercial
banks play vital role in economic growth of a country. As a commercial
institution, a commercial bank must make profit out of its operations for its
survival and fulfillment of the responsibilities assigned. The differential
interest income over the interest cost, which is popularly called interest
margin, can be considered as the 'contribution margin' in the profit of the
bank. The other operational expenses form a burden to contribution margin
which, the banks are attempting to compensate by other income generated
out of non fund based business activities of the bank. This project report has
been tried to examine the profit planning and control of Nepal Investment
Bank Limited. This project report has been tried to answer the following
research questions.
i. What are the deposit and lending growth status of NIBL over the study
period?
ii. What are the financial ratios of NIBL in the study periods?
iii. What is the relation between liquidity and profitability of NIBL?
iv. What are the trend of deposit, lending, assets and profit of NIBL?
1.3 Objectives of the Study
The basic objective of this study is to analyze the deposit and lending status
of NIBL. The others specific objectives of the study are as follows:
i. To examine the deposit and lending growth status of NIBL over the
study period.
ii. To analyze the financial ratios of NIBL in the study periods.
iii. To examine the relation between liquidity and profitability of NIBL.
iv. To examine the trend of deposit, lending, assets and profit of NIBL.
1.4 Rationale of the Study
In this study, profit planning efficiency consists of planning communication
effectiveness, resource allocation efficiency, activity coordination quality,
and operational controlling competency. Profit planning is a valuable
management tool which managers have implemented it in the budget plan in
order to increase efficiency of operations. The evidence shows that the target
level will affect the goal achievement in short-term and firm success in long-
term. Generally, it helps them provide the feedback profit planning efficiency
for managing and controlling operation about their goal achievement and
firm success of manage procedures. Financial institutions are the major
players in this field. The more healthy banking practice in an economy, the
better becomes the economic development. The research study is connected
with the profit planning and control of NIBL, with the major objectives of
examining the proper applicability of profit planning system in the bank.
Profit planning process significantly contributes to improve the profitability
as well as the overall financial performance of an organization by the best
utilization of resources. Profit planning is the heart of management. It tells us
profit is the most important indicator for judging managerial efficiency and
do not fast happened for this every organization has to manage its profits.
Various functional budgets are the basic tools for proper planning of profit
control over them. This study may be useful for managers, investors and
other stakeholders and those who want to know PPC in the NIBL. It may
also helpful for future researchers as a reference material. Profit planning is
the most useful technique for the analysis the profitability and its
performance.
1.5 Review of Previous Studies
Dahal (2017) is states that were GC does not prepare the long term strategic
profit plan but it prepares tactical short term profit plan. GC has not
adequately considered controllable and non-controllable variables affecting
the corporation. They has no in depth analysis of the corporation's strength
and weakness. The objectives of the corporation are not clear, with regard to
profit making and market penetration. The plans are prepared from top level
only. There is no letter communication between the top level and lower level
management regarding the corporation's goals and objectives. GC has not a
system of periodical performance reports. Corporation is not seriously
conscious to it poor performance. Actual production is made in accordance
with the actual sales. Therefore production activities are not done according
to the budgeted production but this done according to the recent data of
actual sales.
Thapa (2017) concluded the NTL does not take in account its weakness and
strength to support planned activities. NTL fails to maintain its periodic
performance report for the evaluation of performance to find the underlying
causes of poor achievements. It seems that budgeted sales are higher than
actual sales. Financial position of NTL is not satisfactory. There is low
degree of positive correlation between sales and profit and negative
correlation between profit and assets. There is not complete and
comprehensive budgeting system. NTL is operating above BEP and
enjoining profit but not appropriate. Above study were related on
commercial banks, manufacturing companies in term of profit planning and
other various topics. The main purpose of the research is to analyze, examine
and interpret the budgeting techniques. Not only that objective of the
research but also to suggest and give good path for the research field. This
project report is profit planning and control of Nepal Investment Bank
Limited. So, researcher wants to study in the field of profit plan and control
to use financial and statistical tool in this way for solve the problems.
1.6 Research Methods
Research methodology covers the wide range of investigation. This project
report has intense relation with the application of profit planning in
commercial banks with reference Nepal Investment Bank Limited. The
research methodology is followed to achieve the basic objectives and goals
of this research work. This section deals with the research design, population
and sample, sources of data, data collection procedure,
instruments/techniques of data analysis and limitation of the study.
i) Research Design
Research design is an analytical as well as descriptive approach to achieve
the objective. Thus, research design is a plan to obtain the answer of research
question through analysis of data. This study used on descriptive and
analytical research design. It is a process of collecting, evaluating and
verifying past evidence.
ii) Population and Sample
There are 28 commercial banks operating in Nepal in end of 2017
(www.nrb.org.np). In this project report only one Nepal Investment Bank
Limited has been taken for sample on the topic profit planning and control of
this commercial bank. A simple random sampling method has been used of
this project report.
iii) Sources of Data
The data presented in the project report are secondary type. The annual
report of the concerned bank is the major sources of the data for the study.
However, besides the annual reports of the subjected banks the following
source of data were used in the respective corner of the study. NRB reports,
various publications dealing in the subject matter of the study and various
articles published in the News papers.
iv) Data Collection Procedure
Beside the above stated sources of data, a detailed review of literature has
been conducted for the purpose of collecting other relevant data and
information. Such data and information are mainly collected from college
library and internet. Such data, information, facts and figures have been
edited, tabulated and calculated before analysis. Then only, results are
concludes and interpretation are made.
v) Tools of Analysis
Data collected from various sources are managed, analysis and presented in
proper as well as systematic tables and formats. Such table and formats are
explained and interpreted as necessary. The analysis of data is done with the
help of financial and statistical tools.
I) Ratio analysis
A) Assets management ratio
A commercial bank must be able to manage its assets very well to earn high
profit, so to satisfy its customers and for own existence. Assets management
ratio measures how efficiently the bank manages the resources at its
commands.
i. Loan and advances to total deposit ratio
This ratio indicates which banks are successful to mobilize the outsider's
fund. It is calculated to see percentage of total deposit invested in loan and
advancers. The ratio is calculated by using the following formula;
Loan∧Advace
Loan∧ Advances ¿ Total Deposit Ratio=
Total Deposit

Greater the ratio implies the better utilization of outsider's fund (Total
Deposit). A high ratio of loan and advances is considered to be the sign of
efficient bank and better mobilization of collected funds and vice-versa.
ii) Total fixed assets turnover ratio
This ratio shows the relationship between the sales and total fixed assets.
This ratio indicates how much fixed assets utilized to increase the volume of
sales. Higher ratio shows the better utilization of total fixed assets. This ratio
is calculated by using this following formula.
Sales
Total ¿ Assets Turnover Ratio=
Total Fi xed Assets
B) Liquidity ratio
Liquidity refers to the ability of a firm to meet its short-term or current
obligations as and when they fall due for payment. So liquidity ratios are
used to measure the ability of a firm to meet its short-term obligations and
from them the present cash solvency as well as ability to remain solvent in
the event of adversities of the same can be examined.
i) Current ratio
Current ratio shows the relationship between current assets and current
liabilities. It indicates the banks short term solvency. It is calculated dividing
the current assets by current liabilities. Thus;
Current Assets
Current Ratio=
Current Liabilities

Current assets are those assets, which are cash or can be converted into cash
within a year. It includes cash and bank balance, money at call or short
notice, loan and advances, investment in government securities, bills
purchased and discounted etc. Similarly current liabilities are those
obligation, which are payable within a year. It includes deposit, short term
loan and borrowing, bills payable, provision for tax and staff bonus, and
dividend payable etc.
C) Leverage ratio
Leverage ratio measures the overall performance of the organization. It
shows the capital structure, status of the lone term and short term liabilities
and the status of the equity.
i. Debt equity ratio
Debt equity ratio is the relationship between long term debt and share
holder's equity. Debt-equity ratio measures the long term financial solvency
of a business concern. It is calculated by dividing to long term debt by
shareholder's equity. The debt-equity ratio can be calculated dividing to
borrowings by share holder equity the details of borrowings and share
holders equity.
 Total Debt
Debt Equity Ratio=
Shareholdres Equity

ii. Interest coverage ratio (ICR)

Interest coverage ratio measures the capacity to pay interest expenses. This
ratio is calculated dividing Net Profit before Interest & Tax by Interest
expenses.
EBIT
Interest Coverage Ratio=
Interest Expenses

B) Profitability ratios
Profitability ratio measures the earning capacity. Among the profitability
ratio gross profit margin ratio, net profit margin ratio, returns on loan and
advances, returns on shareholders equity and returns on total assets are
generally calculated.
i. Return on loan & advances
Return on loan and advance to measure the earning capacity. Return on loan
& advances ratio calculating in net profit by loan & advance.
Net profit
Return on Loan∧ Advance= x 100
Loan∧Advance

ii) Return on total assets

This ratio measures the profitability with respect to the total assets. It reflects
the efficiency of the organization on utilizing its overall resources. This is
found by using the following formula:
Net Profit
Return on Total Assets= x 100
Total Assets

The numerator indicates the position of income left to the interval equities
after all coasts, charges, expenses have been deducted. Total assets comprise
those assets, which appear on the assets side of the balance sheet. The high
return on total assets ratio usually indicates that high profit margin and high
turnover assets and vice-versa.
iii. Return on equity (ROE)
Return on equity plays the measuring role of profitability of any
organization. It reflects the extent to which organization has been successful
to mobilize or utilize its equity capital. A high ratio indicates higher
successful to mobilize its owned capital and vice-versa.
Net Profit
Return on E quity= x 100
SHE

iv) Interest earned to total assets ratio

This ratio shows the percentage of interest earned in relation to total assets of
the bank. It signifies the mobilization of the bank assets in interest generating
purpose.
Higher ratio signifies better efficiency in utilizing the resource in interest
generating sector. It is calculated by using following formula;
Total Interest Income
Interest Earned ¿ Total Assets Ratio= x 100
Total Assets

The numerator comprises total interest income from loans and advances,
cash credit and overdrafts, government securities, interbank and other
investment. A high ratio is an indicator of high earning power, better
performance of the banks on its total working fund and vice-versa.
D) Statistical tools
The relationship between different variables related to study topic would be
drawn out using statistical tools. The tools to be used are as follows,
I. Arithmetic mean ( X ):
Average is statistical constants, which enable us to comprehend in a single
effort of the whole. It represents the entire data by a single value. It provides
the gist and gives the bird's eye view of the huge mass of unwieldy numerical
data. It is calculated as:

X=
∑X
N

Where,
X = Arithmetic Mean
N = Numbers of observation
∑ X = Sum of observation
II. Standard deviation (S.D.)
The standard deviation is the square root of mean squared deviations from
the arithmetic mean and is denoted by S.D. It is used as absolute measure of
dispersion or variability. It is calculated as
σ =√ ∑ ¿ ¿ ¿ ¿

Where,
σ =¿ Standard Deviation
III. Coefficient of variation (C.V.)
The co-efficient of variation (C.V.) is the relative measure based on the
standard deviation and is defined as the ratio of the standard deviation to the
mean expressed in percentage it is independent of units. Hence, it is a
suitable measure for comparing variability of two series with same or
different units. A series with smaller C.V. is said to be less variable or more
consistent or more homogeneous or more uniform or more stable than the
other and vice versa. It is calculated as:
σ
CV = × 100
X

Where,
σ = Standard deviation
X = Mean
IV. Correlation coefficient (r)
Correlation Coefficient is the important tool to analyze the degree of
relationship between two or more variables. It is used t describe the degree to
which one variable in the linearly related to other variables. It refers the
closeness of the relationship between two or more variable. In other words, it
is an analysis of covariance between two or more variables.
It is the statistical measure of the relationship. If any, between series of
numbers representing data of any kind, from returns to test scores. If two
series move in opposite direction, they are positively correlated; if the series
move in opposite direction, they are negatively correlated.

The degree of correlation is measured by the correlation coefficient, which

ranges from +1 for perfectly correlated series to -1 for perfectly negatively
correlated series. Symbolically, correlation coefficient can be expressed as
follows:
n ∑ xy−∑ x . ∑ y
CorrelationCoefficient ( Simply , r )=
√¿ ¿ ¿

Correlation analysis describes the relationship between variables i.e. positive

or negative. It helps to determine the following.
i. A positive or negative relationship exists.
ii. The relationship is significant or insignificant.
iii. Establish cause and effect relation if any.
The statistical tool-correlation analysis is used in the study to measure the
relationship between variables in determining within the relationship is
significant or not. For the purpose decision making interpretation are based
on the following terms.
1. When, r = 1, then is perfect positive correlation.
2. When, r = -1, then is perfect negative correlation.
3. When, r = 0, then is no correlation.
4. When, 'r' lies between 0.7 to 0.999 (-0.7 to -0.999), then is high degree
of positive (or negative) correlation.
5. When, 'r' lies between 0.5 to 0.6999 there is moderate degree of
correlation
6. When, 'r' is less than 0.5, there is low degree of correlation.

V. Probable error (P.E.)

The probable error of the Coefficient of correlation helps in interpreting its
value. With the help of probable error, it is possible to determine the
reliability of the value of the coefficient in so far as it depends on the
conditions of random sampling. The probable error of the coefficient of
correlation is obtained as follows:
1−r 2
P . E .=0.6745 x
√N
Where,
r = Correlation coefficient
N = Number of pairs of observations
If the value of 'r' is less than the probable error, there is no evidence of
correlation, i.e., the value of 'r' is not at all significant. Then, if the value of
*r. is more than six times of the probable error, the coefficient of correlation
is practically certain, i.e. the value of `r' is significant.
VI. Trend analysis
Trend analysis or Time series analysis enables us to forecast the future
behavior of the variables under study, changes in the values of different
variables and past behavior of a variable. In the data related to time span,
there are three components of time series like secular trend or long term
fluctuation, short term or periodic variations and random or irregular
fluctuation, in this study, time series of loan disbursement and collection are
shown in the figures. The experts to deal with variants, which changes, in
value with time are, used time series. Variations of such quantities are
analyzed by presenting on the graphs.
Y = a + bx
The above trend equation can be calculated using following two normal
equations:
∑ Y =na+b ∑ X ……………………………………......... (i)
∑ XY =a ∑ X + b ∑ x 2 …………………………………… (ii)
Where,
Y = Variable
X = Time span
1.7 Limitations of the Study
Every study was own limitations and in this study has been focused on profit
planning and control of NIBL. Nothing is out from the limitation this study
also is not an exception. Here researcher has been tried to examine as far as
possible yet here are some limitations these has been followed:
i) This study has been covered five years data from FY 2013/14 to
FY 2017/18 of NIBL.
ii) The study has been focused on PPC and its application of NIBL.
iii) In this study, the samples of NIBL have been selected among total
commercial banks. But these may not represent the character of
financial institutions.
 CHAPTER-II
RESULTS AND ANALYSIS
This chapter is the heart of the study. It includes the analysis and
interpretation of data as stated in research methodology. It is related to the
quantity analysis of various financial and statistical tools to study & analyze
the profit planning of the commercial banks on the basis of financial
statement.
2.1 Data Presentation
A) Total deposit, lending and growth status of NIBL
NIBL prepares the deposit collection, lending and growth status in the study
area. Which is shown in below table?
Table 2.1: Deposit, Lending and Growth Status of NIBL
(Rs. in Millions)
FY Total Deposit Growth (%) Loan & Advance Growth(%)
2013/14 57010.60 42510.4
2014/15 62428.90 9.50 47369.2 11.43
2015/16 73831.30 18.26 53092.9 12.08
2016/17 90631.50 22.75 67033.4 26.26
2017/18 108626.64 19.86 85461.05 27.49
Mean 78505.79 59093.39
SD 21193.51 17369.19
CV 27.00 29.39
Source: Annual Report of NIBL from the FY 2013/14 to 2017/18
The table shows the total deposit and growth status of NIBL in FY 2013/14
to FY 2017/18. The deposit is in increasing trend but growth rate of deposit
is fluctuating trend. In FY 2014/15 the growth rate is 9.5 percent, in FY
2015/16 the growth rate is 18.26 percent, in FY 2016/17 the growth rate is
22.75 percent and in FY 2017/18 the growth rate is 19.86 percent. Same as,
the loan and advance is increasing trend and growth rate of loan and advance
is also increasing trend. In FY 2014/15 the growth rate is 11.43 percent, in
FY 2015/16 the growth rate is 12.08 percent, in FY 2016/17 the growth rate
is 26.26 percent and in FY 2017/18 the growth rate is 27.49 percent.
Figure 2.1: Growth of Deposit and Lending of NIBL
Trend Deposit Loan and Adcance
#REF!
30 Fiscal Year
25

20
Growth in %

15

10

0
2013/14 2014/15 2015/16 2016/18 2017/18

Source: Table 2.1

B) Loan Disbursement and Deposit Collection Ratio
Now it is also necessary to analyze whether deposit meets to disbursement
and it is significant to analyze the relationship between lending and deposit
collection.
Table 2.2: Loan Disbursement and Deposit Collection Ratio
Rs. in Millions & Ratio in %
FY Loan & Advance Total Deposit Ratio
2013/14 42510.4 57010.60 74.57
2014/15 47369.2 62428.90 75.88
2015/16 53092.9 73831.30 71.91
2016/17 67033.4 90631.50 73.96
2017/18 85461.05 108626.64 78.67
Mean 59093.39 78505.79 75.00
SD 17369.19 21193.51 2.50
CV 29.39 27.00 3.34
Source: Annual Report of NIBL from the FY 2013/14 to 2017/18
The table shows that the level of loan & advance and deposit collection. In
average 75 percent loan disbursement over the study period. However,
disbursement of credit/loan also satisfactory in comparison with deposit in
order to find out nature of variability and standard deviation 2.5 and
coefficient of variation is 3.34 percent in NIBL.
C) Liquidity Ratio
Liquidity ratio reflects the short term financial strength of a firm. This ratio is
calculated by the help of current assets and current liabilities. Here the
researcher is going to calculate the current ratio of NIBL. Current ratio is
calculated dividing current assets by current liabilities.
Table 2.3: Current Ratio
(Rs. in Millions & Ratio in times)
FY Current Assets Current Liabilities Ratio
2013/14 12009.1 4658.1 2.58
2014/15 13519.5 6412.6 2.11
2015/16 16977.1 7729.1 2.20
2016/17 14315 8708.1 1.64
2017/18 13165.13 3318.14 3.97
Mean 13997.17 6165.21 2.50
SD 1861.04 2199.46 0.89
CV 13.30 35.68 35.45
Source: Annual Report of NIBL from the FY 2013/14 to 2017/18
Above table shows the current ratio of NIBL is fluctuating trend. In general,
it can be said that NIBL have not maintain their liquidity position in good
condition. In an average, current ratio of NIBL is 2.5. Likewise, S.D. of
NIBL is 0.89 and CV of NIBL 35.45.
D) Total Debt to Total Assets Ratio
The relationship between total debt and total assets is called total debt to total
assets ratio. Total debt to total assets ratio measures proportion of the total
debt among the total assets. Total debt includes the current debt and long
term debt. It is calculated by dividing to total debt by total assets.
Table 2.4: Total Debt to Total Assets Ratio
(Rs. in Millions, Ratio in Times)
FY Total Debt Total Assets Ratio
2013/14 64620.3 69781.5 0.93
2014/15 71947.2 77999 0.92
2015/16 84964.2 91986.7 0.92
2016/17 103114.9 111042.9 0.93
2017/18 113494.96 129782.7 0.87
Mean 87628.31 96118.56 0.92
SD 20562.60 24469.58 0.02
CV 23.47 25.46 2.49
Source: Annual Report of NIBL from the FY 2013/14 to 2017/18
The table shows the total debt to total assets ratio of the NIBL. Here the
range of total debt to total assets ratio of NIBL is 0.93 to 0.87. The trend of
total debt to total assets ratio is in slightly in fluctuating trend of NIBL. SD
and CV of NIBL is 0.02 percent and 2.49 percent.
E) Total Assets to Net worth Ratio
It shows the portion of total assets occupied by the net worth. In other word,
total contribution of the shareholder's equity to total assets. It is computed as:
Table 2.5: Total Assets to Net worth Ratio of NIBL
(Rs. in Millions, Ratio in Times)
FY Total Assets Net Worth Ratio
2013/14 69781.5 5161.3
13.52 2014/15 77999 6051.8
12.89 2015/16 91986.7 7022.5
13.10 2016/17 111042.9 7928
14.01 2017/18 129782.7
16287.741 7.97 Mean 96118.56
8490.27 12.30 SD 24469.58
4480.49 2.46 CV 25.46
52.77 19.98
Source: Annual of NIBL from the FY 2013/14 to 2017/18,
The table shows the position of total assets to net worth ratio of NIBL. The
ratio of NIBL is fluctuating trend. 13.52 times in FY 2013/14 and 12.89
times in FY 2014/15. 13.10 times in FY 2015/16, 14.01 times in FY 2016/17
and 7.97 times in FY 2017/18.
F) Return on Loan & Advances
Every financial institution tries to mobilize their deposits on loan & advances
properly. So this ratio helps to measure the earning capacity of NIBL.
Returns on loan & advances ratio of NIBL presented as follows.
Table 2.6: Return on Loan and Advance
(Rs. in Millions & Ratio in %)
FY Net Profit Loan & Advance ROA
2013/14 1039.67 42510.4 2.45
2014/15 1915.02 47369.2 4.04
2015/16 1939.62 53092.9 3.65
2016/17 1961.85 67033.4 2.93
2017/18 2550.88 85461.05 2.98
Mean 1881.41 59093.39 3.21
SD 540.30 17369.19 0.63
CV 28.72 29.39
19.73
Source: Annual Report of NIBL from the FY 2013/14 to 2017/18
Above table shows that return on loan and advances ratio of NIBL is in
fluctuating trend. The highest ratio of NIBL is 4.04 percent in the year
2014/15 and lowest ratio 2.45 percent in year 2013/14. The mean ratio is
3.21 percent. The S. D and C.V. of NIBL is 0.63 and 19.73 percent.
G) Return on Total Assets
This ratio measures the overall profitability of all working fund i.e. Total
assets. A firm has to earn satisfactory return on working funds for its
survival. The following table shows return on total assets ratio of NIBL.
Table 2.7: Return on Total Assets Ratio
(Rs. in Millions & Ratio in %)
FY Net Profit Total Assets ROA
2013/14 1039.67 69781.5 1.49
2014/15 1915.02 77999 2.46
2015/16 1939.62 91986.7 2.11
2016/17 1961.85 111042.9 1.77
2017/18 2550.88 129782.7 1.97
Mean 1881.41 96118.56 1.96
SD 540.30 24469.58 0.36
CV 28.72 25.46 18.52
Source: Annual Report of NIBL from the FY 2012/13 to 2016/17
The table shows the return on total assets of NIBL is fluctuating trend and
utilizing the available assets in order to generate revenue since its average
ROA ratio is 1.96 percent. Where as S.D. and C.V. of NIBL is 0.36 and
18.52 percent.
H) Return on Equity
Equity capital of any bank is its owned capital. The objective of any bank is
wealth maximization or in other words to earn high profit and thereby,
maximizing return on its equity capital. Return on equity plays the measuring
role of profitability of bank.
Table 2.8: Return on Equity Ratio
(Rs. in Millions & Ratio in %)
FY Net Profit Share Holder Equity Ratio
2013/14 1039.67 5161.3
20.14 2014/15 1915.02 6051.8
31.64 2015/16 1939.62 7022.5
27.62 2016/17 1961.85 7928
24.75 2017/18 2550.88
16287.74 15.66 Mean 1881.41
 8490.27 23.96 SD 540.30
4480.49 6.25 CV 28.72
52.77 26.10
Source: Annual Report of NIBL from the FY 2012/13 to 2016/17
The table shows return on equity ratio of NIBL. Above calculated statistic
indicate that NIBL has fluctuating trend over the study periods. The mean
ratio of ROE is 23.96.
I) Interest Earned to Total Assets Ratio
Interest earned to total assets ratio evaluates how successful the NIBL are
mobilizing their total assets to achieve high amount of interest. Higher the
ratio indicates the higher interest income of the NIBL.
Table 2.9: Total Interest Earned to Total Assets Ratio
(Rs. in Millions & Ratio %)
FY Interest Earned Total Assets Ratio
2013/14 5982.64 69781.5 8.57
2014/15 5878.27 77999 7.54
2015/16 5816.27 91986.7 6.32
2016/17 5786.16 111042.9 5.21
2017/18 6776.75 129782.7 5.22
Mean 6048.02 96118.56 6.57
SD 414.25 24469.58 1.47
CV 6.85 25.46 22.40
Source: Annual Report of NIBL from the FY 2013/14 to 2017/18
The table shows that the total interest earned to total assets ratio of NIBL is
fluctuating trend. The mean ratio of NIBL is 6.57 percent. The SD and C.V.
is 1.47 and 22.40 percent.
2.1.1 Statistical Analysis
To make the analysis more fruitful and meaning of NIBL certain statistical
tools have been used. Here, Karl person's correlation coefficient and
probable error is used to describe the relationship between CA and CL,
deposit and loan & advance, total assets and net profit. Karl Pearson's
coefficient of correlation is most widely used in practice to measure the
degree of relationship between two variables of the bank.

A) Correlation between Deposit & Loan & Advances

Deposit have played very important role in performance of a commercial
banks and similarly loan & advances are very important to mobilize the
collected deposits. Co-efficient of correlation between deposit and loan &
advances measures the degree of relationship between these two variables. In
this analysis, deposit is independent variable (X) and loan & advances are
dependent variable (Y). The main objectives of computing "r" between these
two variables is to justify whether deposit are significantly used as loan &
advances in proper way or not.
Table 2.10: Correlation between Deposit and Loan & Advances
Name of Banks Evaluation Criterions

Name of Evaluation Criterions

Banks r r2 PE 6 PE
NIBL 0.99 0.9879 0.0037 0.0220
From the above table, it is found that coefficient of correlation between
deposits and loan & advances of NIBL is 0.99. It is shows that NIBL have
the highly positive relationship between these two variables and. Moreover,
the coefficient of determination of NIBL is 0.9879. The correlation
coefficient of NIBL is significant because the correlation coefficient is
greater than the relative value of 6PE.
B) Correlation between Total Deposits and Investment
The coefficient of correlation between deposit and investment measures the
degree of relationship between these two variables or deposit is significantly
utilized or not. In correlation analysis, deposit is independent variable (X)
and total investment is dependent variable (Y). The following calculation
shows the coefficient correlation between deposits and total investments i.e.
r, P. E., 6 P.E. and coefficient of determination (r 2) of NIBL during the study
period.
Table 2.11: Correlation between Deposit and Total Investment

Name of Evaluation Criterions

Banks r r2 PE 6 PE
NIBL 0.88 0.7798 0.0664 0.3986
From the table shows that the coefficient of correlation between total deposit
and total investment of NIBL is 0.88. It shows the positive correlation. In
addition, coefficient of determination of NIBL is 0.7798. It means only 77.98
percent of total investment is explained by total deposit. The correlation
coefficient is significant because the value correlation coefficient is higher
than value of 6PE. It refers that there is significant relationship between total
deposit and total investment of NIBL.
C) Correlation between Loan and advance and Net Profit
Co-efficient of correlation between total assets and net profit is used to
measure the degree of relationship between two variable i.e. Loan and
advance and net profit of NIBL during the study period. Where Loan and
advance is independent variable (X) and net profit is dependent variable (Y).
The main objective of calculating this ratio is to determine the degree of
relationship whether there the net profit is significantly correlated or not and
the variation of net profit to loan and advance through the coefficient of
determination. The following table shows the r, r2, P.E. and 6 P. E. between
those variables of NIBL for the study period.
Table 2.12: Correlation between Loan and advance and Net profit

Name of Evaluation Criterions

Banks r r2 PE 6 PE
NIBL 0.84 0.7044 0.0892 0.5349
Above table shows high degree positive correlation coefficient between, loan
and advance and net profit is 0.84 of NIBL. It refers that there is positive
correlation between these two variables. Here, 70.44 percent of net profit is
contribute by Loan and advance as its coefficient of determination of 0.7044
shows. Moreover, this relationship is significant because the coefficient of
correlation is less than 6PE.
D) Correlation between Investment and Net Profit
Coefficient of correlation between investment and net profit measures the
degree of their relationship. In the, correlation analysis, investment is
independent variable and net profit is dependent variable. The following
table shows the coefficient of correlation coefficient of determination,
probable error and six times of P.E. during the fiscal year 2013/14 to
2017/18.
Table 2.13: Correlation between Investment and Net Profit

Name of Evaluation Criterions

Banks r r2 PE 6 PE
NIBL 0.72 0.5251 0.4133 0.8595
Above table shows correlation coefficient between total investment and net
profit of NIBL is 0.72 which implies there is high degree positive correlation
between total investment and net profit. In addition, coefficient of
determination of NIBL is 0.5251. This correlation is insignificant due to
coefficient of correlation is less than 6PE.
E) Trend Analysis
Trend analysis plays an important role in the analysis and interpretation of
financial statement. Trend in general terms, signifies a tendency. It helps in
forecasting and planning future operation. Trend analysis is a statistical tool,
which shows the previous trend of the financial performance and forecasts
the future financial results of the firms.
i) Trend analysis of total deposit
Deposits are the important part in banking sector hence its trend for next five
years will be forecasted for future analysis. This is calculated by the least
square method. Here the effort has been made to calculate the trend values of
total deposit of NIBL for further five year. Y= a + bx
Where as
Yc = 78505.79 + 13143.47x of NIBL

Table 2.14: Trend Analysis of Total Deposit

(Rs. in Millions)
Year(x) Actual Value Trend Value
2013/14 57010.6 52218.85
2014/15 62428.9 65362.32
2015/16 73831.3 78505.79
2016/17 90631.5 91649.26
2018/18 108626.64 104792.73
2018/19 117936.2
2019/20 131079.67
2020/21 144223.14
2021/22 157366.61
2022/23 170510.08
Source: Appendix I
Figure 2.2: Trend Line of Total Deposit of NIBL
Actual Value Trend Value
180000
160000
140000
120000
Rs. in Millions

100000
80000
60000
40000
20000
0
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Fiscal year

Source: Table No. 2.14

Above table and figure shows that total deposit of NIBL. NIBL is in
increasing trend. The rate of increment of total deposit for NIBL is Rs.
13143.47 Millions. The increasing trend of total deposit of NIBL is
aggressive and high. It indicates NIBL has more prospect of collecting total
deposit. The trend analysis has projected deposit amount in fiscal year FY
2018/19 to FY 2022/23.
B) Trend analysis of loan & advances
Here, the trend values of loan & advances of NIBL have been calculated for
further five year. The following table shows the actual and trend values of
NIBL.
Y= a + bx
Where as
Y=59093.39 +10556.66x NIBL
Table 2.15: Trend Analysis of Total Loan and Advance
(Rs. in Millions)
Year(x) Actual Value Trend Value
2013/14 42510.4 37980.07
2014/15 47369.2 48536.73
2015/16 53092.9 59093.39
2016/17 67033.4 69650.05
2017/18 85461.05 80206.71
2018/19 90763.37
2019/20 101320.03
2020/21 111876.69
2021/22 122433.35
2022/23 132990.01
Source: Appendix II
Figure 2.3: Trend Line of Loan and Advance
 Actual Value Trend Value
140000

120000

100000
Rs. in Millions

80000

60000

40000

20000

0
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Fiscal Year

Source: Table No. 2.15

Above table and figure shows that actual and trend value of loan & advances
of NIBL. NIBL loan and advance has in increasing trend. The increasing
trend of NIBL is Rs. 10556.66 millions. The trend projected for further five
year FY 2018/19 to FY 2022/23.
C) Trend analysis of Investment
Under this topic, an attempt has been made to analyze trend analysis
investment of NIBL for further five years.
Y= a + bx
Where as
Y=11582.35+5083.25x NIBL
Table 2.16: Trend Analysis of Investment
(Rs. in Millions)
Fiscal Year Actual Value Trend Value
2013/14 6169.5 1415.93
2014/15 5985.5 6499.14
2015/16 5826.9 11582.35
2016/17 10703.1 16665.56
2017/18 29226.76 21748.77
2018/19 26831.98
2019/20 31915.19
2020/21 36998.4
2021/22 42081.61
2022/23 47164.82
Source: Appendix III
Above table and below figure shows the actual and trend value of investment
of NIBL. It is increasing trend in investment has high and upward trend of
increasing by Rs. 5083.25 millions. The trend of investment projected from
FY 2018/19 to FY 2021/22.

Figure 2.4: Trend Line of Investment of NIBL

Actual Value Trend Value
50000 Fiscal Year
45000
40000
35000
Rs. in Millions

30000
25000
20000
15000
10000
5000
0
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23

Source: Table No 2.16

D) Trend analysis of Net Profit
Net profit is the major variables in financial sector hence its trend for next
five years will be forecasted for future analysis. Here, the trend values of net
profit of NIBL have been calculated for five years FY 2013/14 to FY
2017/18 and forecasting for the next five year till FY 2022/23.
Y= a + bx
Where as
Y = 1881.4 + 306.92x NIBL
Table 2.17: Trend Analysis of Net Profit
 (Rs. in Millions)
Fiscal Year Actual Value Trend Value
2013/14 1039.67 1267.56
2014/15 1915.02 1574.48
2015/16 1939.62 1881.40
2016/17 1961 2188.32
2017/18 2550.88 2495.24
2018/19 2802.16
2019/20 3109.08
2020/21 3416.00
2021/22 3722.92
2022/23 4029.84
Source: Appendix IV
Figure 2.5 : Trend Line of Net Profit of NIBL

Actual Value Trend Value

4500 Fiscal Years
4000
3500
3000
Rs. in Millions

2500
2000
1500
1000
500
0
2013/14 2015/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23

Source: Table No. 2.17

Above table and figure reveals the trend of net profit of NIBL. Net profit
NIBL forecasted in increasing trend. The trend of increasing value of net
profit of NIBL is aggressive. The trend of net profit projected to FY 2022/23
i.e. further five year.
2.2 Major Findings of the Study
The major findings of this project report on profit planning in NIBL was as
follows.
i. The deposit is in increasing trend but growth rate of deposit is
fluctuating trend. In FY 2014/15 the growth rate is 9.5 percent, in
FY 2015/16 the growth rate is 18.26 percent, in FY 2016/17 the
growth rate is 22.75 percent and in FY 2017/18 the growth rate is
19.86 percent. The loan and advance is increasing trend and growth
rate of loan and advance is also increasing trend.
ii. In average NIBL 75 percent loan disbursement over the study
period. However, disbursement of credit/loan also satisfactory in
comparison with deposit in order to find out nature of variability
and standard deviation 2.5 and coefficient of variation is 3.34
percent in NIBL.
iii. Current ratio of NIBL is fluctuating trend. In general, it can be said
that NIBL have not maintain their liquidity position in good
condition. In an average, current ratio of NIBL is 2.5. Likewise.
S.D. of NIBL is 0.89 and CV of NIBL 35.45.
iv. The total debt to total assets ratio of the NIBL. Here the range of
total debt to total assets ratio of NIBL is 0.93 to 0.87. The trend of
total debt to total assets ratio is in slightly in fluctuating trend of
NIBL. SD and CV of NIBL is 0.02 percent and 2.49 percent.
v. The position of total assets to net worth ratio of NIBL. The ratio of
NIBL is fluctuating trend. 13.52 times in FY 2013/14 and 12.89
times in FY 2014/15, 13.10 times in FY 2015/16. 14.01 times in FY
2016/17 and 7.97 times in FY 2017/18.
vi. Return on loan and advances ratio of NIBL is in fluctuating trend.
The highest ratio of NIBL is 4.04 percent in the year 2014/15 and
lowest ratio 2.45 percent in year 2013/14. The mean ratio is 3.21
percent. The S. D and C.V. of NIBL is 0.63 and 19.73 percent.
vii. The return on total assets of NIBL is fluctuating trend and utilizing
the available assets in order to generate revenue since its average
ROA ratio is 1.96 percent. Where as S.D. and C.V. of NIBL is 0.36
and 18.52 percent.
viii. Return on equity ratio of NIBL. Above calculated statistic indicate
that NIBL has fluctuating trend over the study periods. The mean
 ratio of ROE is 23.96. The total interest earned to total assets ratio
of NIBL is fluctuating trend. The mean ratio of NIBL is 6.57
percent. The SD and C.V. is 1.47 and 22.40 percent.
ix. It is found that coefficient of correlation between deposits and loan
& advances of NIBL is 0.99. It is shows that NIBL have the highly
positive relationship between these two variables and. Moreover,
the coefficient of determination of NIBL is 0.9879. The correlation
coefficient of NIBL is significant because the correlation coefficient
is greater than the relative value of 6PE.
x. The coefficient of correlation between total deposit and total
investment of NIBL is 0.8830. It shows the positive correlation. In
addition, coefficient of determination of NIBL is 0.7798. It means
only 77.98 percent of total investment is explained by total deposit.
The correlation coefficient is significant because the value
correlation coefficient is higher than value of 6PE. It refers that
there is significant relationship between total deposit and total
investment of NIBL.
xi. The high degree positive correlation coefficient between. loan and
advance and net profit is 0.8393 of NIBL. It refers that there is
positive correlation between these two variables. Here. 70.44
percent of net profit is contribute by Loan and advance as its
coefficient of determination of 0.7044 shows. Moreover. this
relationship is significant because the coefficient of correlation is
less than 6PE.
xii. Correlation coefficient between total investment and net profit of
NIBL is 0.7246 which implies there is high degree positive
correlation between total investment and net profit. In addition,
coefficient of determination of NIBL is 0.5251. This correlation is
insignificant due to coefficient of correlation is less than 6PE.
xiii. NIBL is in increasing trend. The rate of increment of total deposit
for NIBL is Rs. 13143.47 millions. The increasing trend of total
deposit of NIBL is aggressive and high. It indicates NIBL has more
prospect of collecting total deposit.
xiv. Actual and trend value of loan & advances of NIBL. NIBL loan and
advance has in increasing, trend. The increasing trend of NIBL is
Rs. 10556.66 millions.
 xv. Actual and trend value of investment of NIBL. It is increasing trend
in investment has high and upward trend of increasing, by Rs.
5083.25 millions.
xvi. Net profit of NIBL has been forecasted in increasing trend. The
trend of increasing value of net profit of NIBL is aggressive.

CHAPTER-III
SUMMARY AND CONCLUSION
3.1 Summary
The project report is based on secondary data and required data have been
collected by using various sources. NIBL is one of the well established
commercial bank in Nepal. Its position as a market leader in the banking
sector and there is ongoing effort and commitment in enhancing its financial
position. This project report was concerned with profit planning and control
of Nepalese commercial banks i.e. Nepal Investment Bank Limited.

This chapter is comprised of three sections, the first section deals with the
introduction of the study; the second section draws the data analysis part of
the study. Lastly, the third section proposes the summary and conclusions.
Commercial bank pools between savers and users thereby raising
employment opportunity. Besides the economic contribution commercial
banks are also recognizes its social responsibilities by contributed to various
social and welfare organization. The major income source of bank is interest
margin which depends upon the deployment of available resources. The bank
generally deployed their resources for the purpose of liquidity, lending and
investing in securities. So the overall profitability of bank depends on
lending procedure, lending policy and investment policy. The main objective
of the study is to evaluate the profit planning system of NIBL.

3.2 Conclusions

The financial strength of NIBL is strong since debt equity ratio shows that
the NIBL use more internal fund to repay its borrowings. The major income
source is interest the trend of interest is increasing trend every year. The
liquidity position of NIBL were better position bank has maintained the
deposit and loan to meet the current obligations. The return on assets and
return on capital is satisfactory. It shows the good earning capacity of the
bank. The result of the study shows the overall performance of NIBL is
satisfactory and progressive. On the basis of study some conclusion has
drawn about the NIBL. Profit planning and controlling system of NIBL is
very effective because it has generated more profit year after year. Analysis
concludes that growth of bank is significant. NIBL is increasing its internal
fund by increasing capital year by year this means strengthen their capability
internally.
REFERENCES
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Hakansson, H. & Lind. J. (2012). Accounting and Network Coordination.
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Hilton, R.W. (2009). Managerial Accounting, USA: McGraw Hill Company
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Joel, D. (2008). Managerial Economics. New Delhi: Prentice Hall of India
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Kothari, C. R. (2010). Quantitative Techniques, New Delhi: Vikash
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Larcker, D. F. (2013). Quality Strategy, Strategic Control Systems and
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Appendix –I
Trend Analysis of Total Deposit of NIBL
FY (X) X x=X- X Deposit (Y) x2 Xy
2013/14 1 -2 57010.6 4 -114021.2
2014/15 2 -1 62428.9 1 -62428.9
2015/16 3 0 73831.3 0 0
2016/17 4 1 90631.5 1 90631.5
2017/18 5 2 108626.64 4 217253.28
N=5 ∑=15 ∑ Y =392528.94 ∑ x 2=10 ∑ xy=131434.68

Let trend line be

Y = a+bx ………………………….. (i)
Where
x= X- Middle Year
Here,
∑Y 392528.94
a= N
= 5
= 78505.79
∑ XY 131434.68
b= = = 3143.47
∑ x2 10
Subsyituting the values of 'a' and 'b', the equation of the trend line
Yc = 78505.79+13143.47 X of NIBL
For Trend Values
Year X=X-3 Trend Values
2013/14 -2 y=a+bx 52218.85
2014/15 -1 y=a+bx1 65362.32
2015/16 0 y=a+bx2 78505.79
2016/17 1 y=a+bx3 91649.26
2017/18 2 y=a+bx4 104792.73
2018/19 3 y=a+bx5 117936.2
2019/20 4 y=a+bx6 131079.67
2020/21 5 y=a+bx7 144223.14
2021/22 6 y=a+bx8 157366.61
2022/23 7 y=a+bx9 170510.08

Appendix –II
Trend Analysis of Loan and Advance of NIBL
FY (X) X x=X- X Loan and Advance (Y) x2 Xy
2013/14 1 -2 42510.4 4 -85020.8
2014/15 2 -1 47369.2 1 -47369.2
2015/16 3 0 53092.9 0 0
2016/17 4 1 67033.4 1 67033.4
2017/18 5 2 85461.05 4 170922.1
N=5 ∑=15 ∑ Y =295466.95 ∑ x 2=10 ∑ xy=105565.5

Let trend line be

Y = a+bx ………………………….. (i)
Where
x= X- Middle Year
Here,
∑Y 295466.95
a= N
= 5
= 59093.39
∑ XY 105565.5
b= = = 10556.55
∑ x2 10
Subsyituting the values of 'a' and 'b', the equation of the trend line
Yc = 59093.39+1056.55x of NIBL
For Trend Values
 Year X=X-3 Trend Values
2013/14 -2 y=a+bx 37980.07
2014/15 -1 y=a+bx1 48536.73
2015/16 0 y=a+bx2 59093.39
2016/17 1 y=a+bx3 69650.05
2017/18 2 y=a+bx4 80206.71
2018/19 3 y=a+bx5 90763.37
2019/20 4 y=a+bx6 101320.03
2020/21 5 y=a+bx7 111876.69
2021/22 6 y=a+bx8 122433.35
2022/23 7 y=a+bx9 132990.01

Appendix –III
Trend Analysis of Total Deposit of NIBL
FY (X) X x=X- X Investment (Y) x2 Xy
2013/14 1 -2 6169.5 4 -12339
2014/15 2 -1 5985.5 1 -5985.5
2015/16 3 0 5826.9 0 0
2016/17 4 1 10703.1 1 10703.1
2017/18 5 2 29226.76 4 58453.52
N=5 ∑=15 ∑ Y =57911.76 ∑ x 2=10 ∑ xy=50832.12

Let trend line be

Y = a+bx ………………………….. (i)
Where
x= X- Middle Year
Here,
∑Y 57911.76
a= N
= 5
= 11582.35
∑ XY 50832.12
b= = = 5083.21
∑ x2 10
Subsyituting the values of 'a' and 'b', the equation of the trend line
Yc = 11582.35+5083.21x
For Trend Values
Year X=X-3 Trend Values
 2013/14 -2 y=a+bx 1415.93
2014/15 -1 y=a+bx1 6499.14
2015/16 0 y=a+bx2 11582.35
2016/17 1 y=a+bx3 16665.56
2017/18 2 y=a+bx4 21748.77
2018/19 3 y=a+bx5 26831.98
2019/20 4 y=a+bx6 31915.19
2020/21 5 y=a+bx7 36998.4
2021/22 6 y=a+bx8 42081.61
2022/23 7 y=a+bx9 47164.82

Appendix –IV
Trend Analysis of Net Profit of NIBL
FY (X) X x=X- X Deposit (Y) x2 Xy
2013/14 1 -2 1039.67 4 -2079.34
2014/15 2 -1 1915.02 1 -1915.02
2015/16 3 0 1939.62 0 0
2016/17 4 1 1961.85 1 1961.85
2017/18 5 2 2550.88 4 5101.76
N=5 ∑=15 ∑ Y =9407.04 ∑ x 2=10 ∑ xy=3069.25

Let trend line be

Y = a+bx ………………………….. (i)
Where
x= X- Middle Year
Here,
∑Y 2881.33
a= N
= 5
= 1881.41
∑ XY 2184.19
b= = = 306.93
∑ x2 10
Subsyituting the values of 'a' and 'b', the equation of the trend line
Yc = 1881.41 + 306.93x
For Trend Values
Year X=X-3 Trend Values
2013/14 -2 y=a+bx 1267.56
2014/15 -1 y=a+bx1 1574.48
2015/16 0 y=a+bx2 1881.4
2016/17 1 y=a+bx3 2188.32
2017/18 2 y=a+bx4 2495.24
2018/19 3 y=a+bx5 2802.16
2019/20 4 y=a+bx6 3109.08
2020/21 5 y=a+bx7 3416
2021/22 6 y=a+bx8 3722.92
2022/23 7 y=a+bx9 4029.84