Group Presentation On

Nepal Investment Bank Ltd.

Abhyuday Shah Churamani Lamsal

Kalyan AdhikariKranti Kumar Milan Karki

Raghav AgrawalRahul Giri

Shripal Shrestha

Net Profit Margin(current year): Net Revenue of the year 066/067=Rs.4,65,35,21,338 Net profit after tax and provision=Rs.1,26,59,49,588

Therefore , Net profit margin=(Net profit/Net revenue) *100%=(1,26,59,49,588/4,65,35,21,338)*100%=27.2041%

It means , in the economic year 066/067,Nepal Investment Bank earned net profit of Rs.1,26,59,49,588 in amount or 27.2041 in % of Net revenue(Interest revenue).It shows the bank is in a good position.

Net Profit Margin(previous year): Net Revenue=Rs.3,26,79,41,142 Net Profit =Rs.90,06,19,072Therefore, Net profit margin=(Net profit/Net revenue) * 100%

=(90,06,19,072/3,26,79,41,142) *100% =27.5592%

So, when evaluating the 2 years net profit margin, we find that in the economic year 066/067 ,the bank’s Net Profit Amount is more than the profit earned in the year 065/066.But on comparing the 2 years Net Profit Margin ,the profit of the Current year(066/067) is slightly less than the profit of the Previous year (065/066).The main reason behind this is the increment in the Expenses along with the increment in Revenue. On the other side the bank wasn’t successful in collecting the revenue in the same rate as the previous year.

Current Ratio: Current Assets

Cash=Rs.1,52,54,41,872Bank=Rs.2,05,32,30,931

NRB=Rs.3237217030 Money at Short call=Rs. – Stocks of Stationary=Rs.9,37,093 Income Receivable on Investment=Rs.5,93,86,690 Sundry Debtors=Rs.1,61,89,309 Loan & Advances=Rs.10,06,02,317 Repayments=Rs.4,29,59,127 Receivable=Rs.51,17,279

Total=Rs.7,04,10,81,648

Current Liabilities:Borrowings=Rs.3,73,14,826Bills payable=Rs.3,81,43,836

Proposed Dividend=Rs.60,22,74,425 Income Tax Liabilities=Rs.37,95,255 Current Deposits Liabilities=Rs.4,02,58,20,180 Interest Payable=Rs.12,64,25,971 Unearned Discount & commission=Rs.11,28,83,429 Sundry Creditors=Rs.15,03,15,282 Deferred Tax liabilities=Rs.2,71,83,263 Dividend Payable=Rs.1,68,22,327

Total=Rs.5,17,43,78,794

Current Ratio=Current Assets/Current Liabilities=Rs.7041081648/Rs.5174378794=1:1.360

Current ratio shows the ability and the capacity of the bank to pay the liabilities or obligations at the required time. The ratio 1:1.360 shows that there is sufficient current resources with NIB to pay the

Liquid Ratio Liquid Assets =Current Assets – (Advance + Stock)

=Rs.7,04,10,81,648 – Rs.(10,06,02,317 + 9,37,093) =Rs.6,93,95,42,238

Current Liabilities=Rs.5,17,43,78,794 Liquid Ratio=Liquid Assets/Current Liabilities

=6,93,95,42,238/5,17,43,78,794 =1:1.3411

The ratio

Earning Per Share: Net Profit after Tax=Rs.1,26,59,49,588Total no. of Equity share(ordinary)=Rs.2,40,90,977

Earning per Share=NPAT/No. of Ordinary Share =1,26,59,49,588/2,40,90,977 =Rs.52.55

Dividend per Share: Total Amount of Dividend=Rs.60,22,74,425 Total no. of Ordinary Share=2,40,90,977

Dividend per Share=Amount of Dividend/No. of Ordinary Share =60,22,74,425/2,40,90,977 =Rs.25