Kist bank presentation

CURRENT ASSETS AMOUNT(IN MILLIONS)

CASH 563

BALANCE WITH BANKS 278

MONEY AT CALL 1,366

NEPAL GOVERNMENT SECURITIES 1,578

INTER BANK LENDING 309

LOANS, ADVANCE AND BILLS PURCHASED

7,781

OTHER CURRENT ASSETS 152

TOTAL 12,027

CURRENT LIABILITIES AMOUNT(IN MILLIONS)

NON INTEREST BEARING DEPOSITS 229

SAVING AND CALL DEPOSITS 4,902

FIXED DEPOSITS 3,076

BORROWINGS 500

PROPOSED DIVIDENDS 100

INCOME TAX PAYABLE 7.67

OTHER CURRENT LIABILITIES 247

TOTAL 9,061.67

WORKING CAPITAL=CURRENT ASSETS CURRENT LIABILITIES =12,027 9,061.67 =2,965.33 MILLIONS

WORKING CAPITAL SHOWS THE FUNDS AVAILABLE WITH THE BANK FOR FURTHER INVESTMENTS, LOANS AND OTHER ACTIVITIES

CURRENT ASSETS

CURRENT RATIO CURRENT LIABILITIES 1.33:1THIS INDICATES THAT THE BANK DOESN’T HAVE THE ABILITY TO MEET IT’S CURRENT OBLIGATION AS THE SATISFACTORY CURRENT RATIO IS CONSIDERED 2:1,HOWEVER,THE RATIO ONLY MEASURES THE QUANTITATIVE ASPECT NOT THE QUALITATIVE ASPECT SO THIS DOESN’T MEAN THE BANK IS NOTPERFORMING WELL.

• QUICK ASSETS=CURRENT ASSETS-QUICK ASSETS AMOUNT(IN MILLIONS)

CASH 563

BALANCE WITH BANKS 278

MONEY AT CALL 1,366

NEPAL GOVERNMENT SECURITIES 1,578

INTER BANK LENDINGS 309

OTHER CURRENT ASSETS 152

TOTAL 4,246

QUICK ASSETS

QUICK RATIO CURRENT ASSETS

0.47:1

CONSIDERING THE QUICK RATIO OF 1:1 ASSATISFACTORY, WE CAN SAY THAT THE BANK MAY NOT MEET ITS SHORT-TERM OBLIGATIONS.

• EARNING PER SHARE WAS NPR.4.48 IN FY2008/9 BUT IT HAS INCREASED TO NPR7.21 IN FY 2009/10.• THE INCREASE IN EPS SHOWS THE

PROGRESS MADE BY THE BANK. HIGHER THE EPS BETTER FOR THE BANK.

• DIVIDEND PER SHARE WAS 3.50% IN FY2008/09 WHICH HAS INCREASED TO 5.00% IN FY 2009/10• HIGHER DPS INCREASES THE TRUST OF

THE SHAREHOLDERS.• HIGHER THE DPS BETTER THE

SATISFACTION OF THE SHAREHOLDERS

• THE TOTAL AMOUNT OF NON PERFORMING ASSET IN FY 2008/09 WAS 15,296,351 WHICH HAS INCREASED TO 24,090,030 IN FY 2009/10

• THE INCREASE IN NON PERFORMING ASSETS MEANS THE INCREASE IN RISK. IT WOULD BE BETTER FOR THE BANK IF THE BANK COULD DECREASE THE AMOUNT OF NON PERFORMING ASSET.

• LOWER THE AMOUNT OF NON PERFORMING ASSET BETTER IT IS FOR THE BANK.

NET PROFIT AFTER TAX WAS NPR.89,663,093 IN FY 2008/09 WHICH HAS INCREASED TO 144,138,231 IN FY 2009/10

THE PROFIT HAS INCREASED BY 54,475,138 WHICH MEANS HIGHER AMOUNT OF CAPITAL FOR FURTHER INVESTMENT IN THE BANK.

INCREASE IN PROFIT HELPS TO MEET THE SET GOALS AND OBJECTIVES OF THE BANK.