CHAPTER - IV

PRESENTATION AND ANALYSIS OF DATA

In this chapter the researcher has analyzed and interpreted relevant and available data
of the selected commercial banks according to the research methodology as
mentioned in the previous chapter. The analysis of data consists of organizing,
tabulating and evaluating the collected data.

4.1 Financial Tool

Financial analysis is the process of identifying the financial strength and weakness of
the organization presenting the relationship between the items of balance sheet. For the
purpose of this study, ratio analysis has been mainly used any with the help of it, data
can be analyzed. Various financial ratios related to the financial management and the
fund mobilization are presented and discussed to evaluate and analyze the performance
of NIC Asia Bank. Financial ratios are calculated and data will be analyzed with the
help of those ratios. Some important financial ratios are only calculated from the point
of view of the fund mobilization and financial analysis. The ratio’s are designed and
calculated to highlight the relationship between financial items and figures. It is a kind
of mathematical relationship and procedure dividing one item by another. All these
calculations are based on financial statements of concerned Banks.

4.1.1 Liquidity Ratio

Commercial Banks must maintain its satisfactory liquidity position to satisfy the
credit needs of the Commercial to meet demands for deposit, withdrawals, Pay nation
by obligation in time and convert non-cash assets into cash to fulfill immediate needs
without loss of bank and consequent impact on long run profit. The following ratios
are used to measure the liquidity position of NIC Asia Bank Limited with the help of
financial data of past Nine years of the bank.
a) Current Ratio
b) Cash and Bank Balance to Total Deposit Ratio
c) Cash and Bank Balance to Current Assets Ratio
d) Loan and Advance to Current Assets Ratio
e) Investment on Government Securities to Current Assets Ratio
a) Current Ratio
The current ratio is the quantitative relationship between current assets and current
liabilities. Here, current assets are those, which can normally be converted into cash
within a year. These include cash and marketable securities, accounts receivable,
inventories and so on. On other hand, current liabilities refer to those obligations,
which must be paid within an accounting cycle. These include accruals, accounts
payable, notes payable and so on. Current ratio is calculated as follows:

Total Current Assets

Current Ratio =
Total Current Liability
The current ratio of NIC Asia Bank Limited, is exhibited in table 4.1

Table 4.1
Current Ratio (In times)
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
C.A 30605 35388 39048 44385 48658 52563 54138 57863 62987
551 145 317 666 814 821 762 452 650
C.L 23106 23629 29976 36265 43355 47542 48767 51987 56782
700 571 581 030 539 345 895 563 322
C.R 1.325 1.498 1.303 1.224 1.122 1.106 1.110 1.113 1.109
Me          
an       1.2121
S.D                 0.1381
C.V                 0.114
(Source Appendix-I)
The Table and Chart 4.1 show the current ratio of NIC Asia banks from 2009/10 to
2017/18. The standard current ratio is 2:1. The current asset to current liabilities of
NIC bank is 1.106 times in fiscal year 2014/15 whereas 1.109 times in fiscal year
2017/18..Similarly the highest current assets to current liabilities ratio of bank is 1.498
times in fiscal year 2010/11 and lowest ratio is 1.106 in fiscal year 2014/15.
 Chart 4.1
Current Ratio (In times)

C.R
1.600

1.400

1.200

1.000
C.R
0.800

0.600

0.400

0.200

0.000
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The average ratio of last nine years of Bank is 1.212 times. The table and graph
indicates that all Current ratio of all year are below than the normal standard.

b) Cash and Bank Balance to Total Deposit Ratio

Cash Reserve ratio is the ratio between Cash and Bank Balances to Total Deposit. The
cash reserve requirement in the most developed and developing countries have been
used extensively as a means to control commercial banks credit. Especially in
countries where capital market is not well developed, cash reserve requirement can be
used not only to control the commercial bank credit but also to influence the
investment portfolio of the commercial banks. Cash Reserve Ratio(CRR) or cash and
Bank Balance to Total Deposit Ratio is calculated by dividing the cash and bank
balance by the amount of total deposit, which is presented below.
Cas h∧Bank Balance
Cash and Bank Balance to Total Deposit =
Total Deposit
The cash and bank balance to total deposit ratio of NIC Asia Bank Limited for the
period of 2009/10 to 2017/18 is presented in the table number 4.2 below:
 Table 4.2
Cash and Bank Balance to Total Deposit Ratio
F/Y 2009/1 2010/1 2011/1 2012/ 2013/ 2014/1 2015/1 2016/1 2017/1
0 1 2 13 14 5 6 7 8
CBB 38664 29646 63622 36481 55425 58463 62345 65236 70237
90 51 96 98 90 52 67 54 65
TD 37611 40920 47730 53072 64674 68235 75645 76567 84567
202 627 993 319 848 426 434 654 897
Rati 0.10 0.07 0.13 0.07 0.09 0.09 0.08 0.09 0.08
o
Mea                 0.0888
n
S.D                 0.0192
C.V                 0.2163
(Source Appendix-I)

Chart 4.2
Cash and Bank Balance to Total Deposit Ratio

Ratio
0.14

0.12

0.10

0.08 Ratio

0.06

0.04

0.02

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

In the table and chart 4.2, cash & bank balance to total deposit ratio has been
calculated by dividing total cash and bank balance amount by total deposit amount.
The above ratio reveals that the ability of banks to cover its short-term deposits. On
an average basis, NIC Bank is more in better position with an average of 0.09%. It
recorded highest ratio of 0.13 in the year 2011-12 whereas the lowest of 0.07 on
2012-13.

c) Cash and Bank Balance to Current Assets Ratio

Cash and bank balance are the most liquid form of the current assets. The cash and
bank balance ratio indicates the percentage of readily available funds within the bank.
The cash and bank balance to current asset ratio is calculated by using the following
formulas:

Cas h∧Bank Balance

Cash and Bank balance to Current Assets Ratio =
Current Assets

The cash and bank balance to current assets ratio of NIC Asia Bank is presented
below in table 4.3
Table 4.3
Cash and Bank Balance to Current Assets Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
CBB 38664 29646 63622 36481 55425 58463 62345 65236 70237
90 51 96 98 90 52 67 54 65
CA 30605 35388 39048 44385 48658 52563 54138 57863 62987
551 145 317 666 814 821 762 452 650
Rati 0.13 0.08 0.16 0.08 0.11 0.11 0.12 0.11 0.11
o
Me                 0.1133
an
S.D                 0.0237
C.V                 0.209
(Source: Appendix-III)
 Chart 4.3
Cash and Bank Balance to Current Assets Ratio

Ratio
0.18

0.16

0.14

0.12

0.10 Ratio

0.08

0.06

0.04

0.02

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The Table and Chart 4.3 show the cash and bank balance to current asset ratio of nine
year i.e. NIC Bank during fiscal year 2009/10 to 2017/18. Over the study period, on
an average NIC Asia bank has highest ratio of 16%. Likewise Therefore, 2011/12 has
the highest ratio and lowest in the year 2010/11, 2012/13 has the lowest ratio of cash
and bank balance to current assets. It implies that at some time NIC Asia has held
more cash and bank balance than has been successful in utilizing the depositor’s
money in short term loans.

It indicates that NIC Asia bank has high degree of variability or is inconsistent in
holding cash and bank balance to current assets over the study period. Bank limited
has low degree of variability or is consistent in holding cash and bank balance to
current assets over the study period.

d) Loan and Advance to Current Assets Ratio

Loans and advances are the bills purchased and discounted, local and foreign
currencies, loan and advances and overdrafts. Bank loans and advances are the main
assets used as a source of income in the commercial banks. This ratio is calculated to
determine the proportional of current assets, which are interested as loans and
advances to generate the income for the bank. It is expressed as:
Loan∧ Advance
Loan and Advance to Current Assets Ratio =
Current Assets

Loans and advances to current assets ratio of NIC Asia Bank Limited for the period of
2009/10 to 2017/18 is presented in table 4.4:
Table 4.4
Loan and Advances to Current Assets Ratio (In times)
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
L&A 27980 31566 34965 39723 45320 49768 51234 54675 58764
628 976 433 805 359 546 567 643 565
CA 30605 35388 39048 44385 48658 52563 54138 57863 62987
551 145 317 666 814 821 762 452 650
Rati 0.91 0.89 0.90 0.89 0.93 0.95 0.95 0.94 0.93
o
Me          
an       0.9221
SD                 0.0233
CV                 0.0253
(Source: Appendix-IV)

Chart 4.4
Loan and Advances to Current Assets Ratio (In times)

Ratio
0.96
0.95
0.94
0.93
0.92
Ratio
0.91
0.90
0.89
0.88
0.87
0.86
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The table and Chart 4.4 shows the loans and advances to current assets ratio of nine
year from 2009/10 to 2017/18 According to the table the maximum ratio of 95% in
fiscal year 2014/15 .The minimum ratio of 89% From mean ratio perspective, it can
be concluded that NIC Asia Bank has been successful in mobilizing its current assets
as loan and advances.

e) Investment on Government Securities to Current Assets Ratio (IGS)

The ratio examines Share of a commercial banks current assets which invested in
different government securities i.e. treasury bills and government bonds. Commercial
banks are interested to invest their collected fund on different securities issued by
government to utilize their excess fund. Even governments securities are not so liquid
as cash and bank balance of commercial bank they can easily be sold in the market or
it can also be converted into cash in other ways. The ratio is computed as:

Investment onGovernment Securities

IGS=
Current Assets

Investment on government securities to current assets ratio of NIC Asia Bank Limited
for the period of 2009/10 to 2017/18 is presented in table 4.5:

Table 4.5
Investment on Government Securities to Current Assets Ratio
F/Y 2009/ 2010/ 2011/1 2012/1 2013/1 2014/1 2015/1 2016/1 2017/1
10 11 2 3 4 5 6 7 8
IGS 44653 64073 91622 98867 12182 13232 15090 17237 21989
72409 62541 23297 60481 97442 34522 94672 65463 86547
3 4 3 2 6
CA 30605 35388 39048 44385 48658 52563 54138 57863 62987
55100 14500 31700 66600 81400 82100 76200 45200 65000
0 0 0 0 0 0 0 0 0
Ra 0.15 0.18 0.23 0.22 0.25 0.25 0.28 0.30 0.35
tio
Me          
an       0.2458
S.D                 0.0606
C.V                 0.2464
(Source: Appendix-V)
 Chart 4.5
Investment on Government Securities to Current Assets Ratio

Ratio
0.40

0.35

0.30

0.25
Ratio
0.20

0.15

0.10

0.05

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The table and chart shows investment on government securities to current assets ratio
of NIC Asia bank during fiscal year 2009/10 to 2017/18. The average ratio is 24.58%.
Average ratio of 2017/18 is higher it means it has emphasized more on loan and
advances and other short term investment than investment in govt. securities. For
minimization of investment risk.

4.1.2 Leverage Ratio

Leverage ratio measures the proportion of outsider’s capital in financing the firm's
assets, and are calculated by establishing relationships between borrowed capital and
equity capital. A firm should have a strong short-term liquidity as well as long-term
financial position. Higher leverage ratio indicates larger amount of borrowed funds
used by the firm to finance its assets and it also indicates increasing obligations and
known as risky firm. A firm must have sufficient margin of equity to pay the fixed
charges and refund the borrowed funds in the maturing date. The following ratios are
used to measure the long-term solvency position of NIC Asia Bank Limited with the
help of financial data of past nine years of the bank.

a) Total Debt to Equity Ratio

b) Total Debt to Total Assets Ratio
c) Total Shareholder's Equity to Total Assets Ratio

a) Total Debt to Equity Ratio

Total debt to shareholder's equity ratio indicates the relationship between the long-term
funds provided by creditors and those provided by the firm's owners. The total debt
refers to the total current liabilities plus the borrowing from other banks. It is
commonly used to measure the degree of financial leverage of firm and is calculated
as follows:
Total Debt
Total Debt to Equity Ratio =
¿ tal Equity

The debt to shareholder’s equity ratio of NIC Asia Bank Limited for the year 2009/10
to 2017/18 is presented in the table 4.6 below:

Table 4.6
Total Debt to Shareholder's Equity Ratio (In times)
F/Y 2009/ 2010/1 2011/ 2012/1 2013/1 2014/1 2015/1 2016/1 2017/1
10 1 12 3 4 5 6 7 8
Deb 39277 42740 49732 55853 67506 70568 73452 75643 78976
t 919 725 418 257 434 754 314 425 545
Equi 34392 39954 46320 52997 60834 65453 68234 71864 75653
ty 05 78 10 08 11 62 35 24 22
Rati 11.42 10.70 10.74 10.54 11.10 10.78 10.76 10.53 10.44
o
Mea                 10.778
n
SD                 0.3079
CV                 0.0286
(Source: Appendix-VI)
Chart 4.6
Total Debt to Shareholder's Equity Ratio (In times)

Ratio
11.60

11.40

11.20

11.00

10.80 Ratio

10.60

10.40

10.20

10.00

9.80
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The table and chart 4.6 shows the total debt to shareholder’s equity ratio of NIC Asia
Bank Limited during 2009/10 to 2017/18. On an average 2009/10 has the highest ratio
of 11.42 times. Next to it there is 2013/14 with an average of 11.10 times.
It means NIC Asia has high degree of variability or is in consistent in maintaining total
debt to total equity over the study period

b) Total Debt to Assets Ratio

Total debt to total assets ratio shows the relationships between creditors funds and
owners capital. This ratio shows the proportion of outsiders fund used in financing
total assets. This ratio is calculated by dividing the total debt of the bank by its total
assets, which is presented below.

Total Debt
Total Debt to Assets Ratio =
Total Assets

The total debt to total assets ratio of NIC Asia Bank Limited of 2009/10 to 2017/18 is
presented in the following table 4.7 below:
Table 4.7
Total Debt to Total Assets Ratio (In percent)
F/Y 2009/ 2010/ 2011/1 2012/1 2013/1 2014/1 2015/1 2016/1 2017/1
10 11 2 3 4 5 6 7 8
Total 39277 4274 49732 55853 67506 70568 73452 75643 78976
Debt 919 0725 418 257 434 754 314 425 545
Total 42717 4673 54364 61152 73589 76234 79806 83234 87234
Asset 125 6204 428 965 846 564 545 567 567
s
Ratio 0.919 0.914 0.9148 0.9133 0.9173 0.9257 0.9204 0.9088 0.9053
5 5
Mea                 91.55
n
SD                 0.61
CV                 0.0067
(Source: Appendix-VII)

From the above table, the average ratio of total debt to total assets of NIC Asia Bank
Limited is 91.55%. It indicates that 2014/15 has highest ratio (i.e. 93%) of total debt
into total assets over the study period and 2017/18 has lowest ratio (i.e.90.53%) of
total debt total assets over the study period.
 Chart 4.7
Total Debt to Total Assets Ratio

Ratio
0.9300

0.9250

0.9200

0.9150 Ratio

0.9100

0.9050

0.9000

0.8950
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

c) Total Shareholder's Equity to Total Assets Ratio

Without shareholder equity commercial bank cannot performs its activity.
Shareholder's Equity to total assets ratio indicates the proportion of the assets, which is
financed from ownership capital of the firm. This ratio also exhibits the relationship
between shareholders fund and owner's capital. This ratio shows the share of
shareholders on the total assets. It can be expressed as follows:

Total Shareholder s Equity

Total Shareholder's Equity to Total Assets Ratio =
Total Assets

The shareholder’s equity to total assets ratio of NIC Asia Bank Limited for the year
2009/10 to 2017/18 is presented in the table 4.8 below:

Table 4.8
Total Shareholder's Equity to Total Assets Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
Eq 34392 39954 46320 52997 60834 65453 68234 71864 75653
05 78 10 08 11 62 35 24 22
TA 42717 46736 54364 61152 73589 76234 79806 83234 87234
125 204 428 965 846 564 545 567 567
Rati 0.08 0.09 0.09 0.09 0.08 0.09 0.09 0.09 0.09
o
Me          
an       8.4995
SD                 0.2073
 CV                 0.0244
Chart 4.8
Total Shareholder's Equity to Total Assets Ratio

Ratio
0.09

0.09

0.08
Ratio
0.08

0.08

0.08

0.08
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

From above table and chart 4.8 shareholder’s equity to total assets ratio of the bank
has been in fluctuating trend. It has recorded lowest figure in the year 2009/10. It
indicates that the bank has properly utilized its shareholder’s equity in assets and have
high degree of variability or is inconsistent in maintaining shareholder’s equity to
total assets over the study period.

4.1.3 Capital Adequacy Ratio

The capital adequacy ratio shows weather commercial banks are maintaining sufficient
amount of capital fund in comparison to the total amount of their deposits. According
to capital adequacy ratio principles, safety and stability of the financial system
ultimately rest upon the confidence of the depositors and creditors.

The following ratio has been used to measure the capital adequacy ratio of NIC Asia
Bank Limited with the help of financial data of past Nine years of the bank.
a) Net worth to Total Deposit Ratio.
b) Net Worth to Total Assets Ratio.

a) Net Worth to Total Deposit Ratio

This ratio is concerned with the sufficiency of shareholders fund against the total
deposits. It is very essential for every financial institution to have a balance of required
percentage of total deposits at shareholders fund. This ratio is derived by dividing
shareholders fund by total deposits.
 Net Wo rth
Net Worth to Total Deposit Ratio =
Total Deposit
Net worth to total deposit ratio of NIC Asia Bank Limited for the year 2009/10 to
2017/18 is presented in the table 4.9 below:

Table 4.9
Net Worth to Total Deposit Ratio
F/Y 2009 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
/10 11 12 13 14 15 16 17 8
NW 3439 39954 46320 52997 60834 65743 70234 75456 78987
205 78 10 08 11 22 57 73 62
TD 3761 40920 47730 53072 64674 68235 75645 76567 84567
1202 627 993 319 848 426 434 654 897
Ratio 0.09 0.10 0.10 0.10 0.09 0.10 0.09 0.10 0.09
Mea          
n       9.5688
SD                 0.2864
CV                 0.0299
(Source: Appendix-IX)

Chart 4.9
Net Worth to Total Deposit Ratio

Ratio
0.10

0.10

0.10

0.10
Ratio
0.09

0.09

0.09

0.09

0.09
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

From above table 4.9 net worth to total assets ratio of the bank during 2009/10 to
2017/18. On an average, it has highest ratio of 10%. Lowest figure recorded is 9%
Here the average ratio of the bank shows the favorable capital adequacy ratio.

b) Net Worth to Total Assets Ratio

This ratio is concerned with the sufficiency of shareholders fund against the total
assets. It is very essential for every financial institution to have a balance of required
percentage of total assets at shareholders fund i.e. capital fund. This ratio is derived by
dividing shareholders fund by total assets.
Net Worth
Net Worth to Total Assets Ratio =
Total Assets

Net worth to total assets ratio of NIC Asia Bank Limited for the year 2009/10 to
2017/18 is presented in the table 4.10 below:
Table 4.10
Net Worth to Total Assets Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
NW 34392 39954 46320 52997 60834 65743 70234 75456 78987
05 78 10 08 11 22 57 73 62
TA 42717 46736 54364 61152 73589 76234 79806 83234 87234
125 204 428 965 846 564 545 567 567
Rati 0.08 0.09 0.09 0.09 0.08 0.09 0.09 0.09 0.09
o
Me          
an       8.622
SD                 0.3327
CV                 0.0386
(Source: Appendix-X)

From above table 4.10 net worth to total assets ratio has been in fluctuating trend. It
has maintained an average figure of 9% during all the study period.
 Chart 4.10
Net Worth to Total Assets Ratio

Ratio
0.09

0.09

0.09

0.09

0.08 Ratio

0.08

0.08

0.08

0.08

0.07
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

4.1.4 Activity ratio

This ratio is used to measure the speed with which various accounts are converted into
sales or cash. Therefore, the activity ratios are used to measure the ability of the bank
in utilizing its available resources. The following activity ratios are calculated and
analyzed to determine the degree of utilization of available resources of the bank

a) Investment to Total Deposit Ratio

b) Loan and Advance to Saving Deposit Ratio
c) Loan and Advance to Fixed Deposit Ratio
d) Loan and Advance to Total Deposit Ratio
e) Fixed Deposit to Total Deposit Ratio
f) Saving Deposit to Total Deposit Ratio

a) Investment to Total Deposit Ratio

This ratio is calculated investment dividing by total deposits. This ratio presents how
efficiently the resources the banks have been mobilized high ratio shows managerial
efficiency regarding the utilization of deposits.
Investment
Investment to Total Deposit Ratio =
Total Deposits
Total Investment to total deposit ratio of NIC Asia Bank Limited for the year 2009/10
to 2017/18 is presented in the table 4.11 below:
Table 4.11
 Total Investment to Total Deposit Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/18
10 11 12 13 14 15 16 17
Invest 84449 87699 10031 12992 19842 21434 22576 23064 238765
ment 10 38 580 045 060 567 454 532 42
TD 37611 40920 47730 53072 64674 68235 75645 76567 845678
202 627 993 319 848 426 434 654 97
Ratio 0.22 0.21 0.21 0.24 0.31 0.31 0.30 0.30 0.28
Mean                 26.6306
S.D                 4.2571
C.V           0.15985
      7221
(Source: Appendix-XI)
Chart 4.11
Total Investment to Total Deposit Ratio

Ratio
0.35

0.30

0.25

0.20 Ratio

0.15

0.10

0.05

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

From above table and chart total investment to total deposit ratio of NIC Asia Bank
Limited during 2009/10 to 2017/18 has been presented. In the year 2014/15 it has the highest
ratio of of over 30% which mean that in average is investing 27 percent of its deposit in
different sectors. 2011/12 have lowest average ratio. From above calculation it is found that it
is investing more deposit since the year 2012/13.

b) Loan and Advance to Saving Deposit Ratio

Loan and advances to saving deposit ratio measures how many times the second high
interest bearing deposit is utilized for income generating purpose. This ratio can be
calculated by dividing the amount of loans and advances by the amount of saving
deposits. The ratio is calculated as follows.
 Loan∧ Advance
Loan and Advance to Saving Deposit Ratio =
Saving Deposit

The loans and advances to saving deposit ratio of NIC Asia Bank Limited for the year
2009/10 to 2017/18 is presented in the table 4.12 below:
Table 4.12
Loan and Advance to Saving Deposit Ratio (In Times)
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
LA 27980 31566 34965 39723 45320 49768 51234 54675 58764
628 976 433 805 359 546 567 643 565
SD 16294 15994 21915 26484 32843 36745 40567 43567 48765
680 564 374 280 446 634 834 823 345
Rati 1.72 1.97 1.60 1.50 1.38 1.35 1.26 1.25 1.21
o
Me          
an       1.4715
S.D                 0.253
C.V                 0.1719
(Source: Appendix-XII)

Chart 4.12
Loan and Advance to Saving Deposit Ratio (In Times)

Ratio
2.50

2.00

1.50
Ratio

1.00

0.50

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The table and Chart 4.12 shows the loan and advances to saving deposit ratio during
2009/10 to 2017/18. Over the study period on an average basis, 2010/11 has the
highest ratio of around 2.00 times similarly have the lowest ratio of 1.21 times. It
implies that has been successful in using the depositor’s saving deposit properly in
loan and advances than over the study period.
c) Loan and Advance to Fixed Deposit Ratio
Loan and advances to fixed deposit ratio means how many times the amount is used
in loans and advances in comparison to fixed deposit. Fixed deposits are high interest
bearing obligation whereas loans and advances are the major sources of investment to
generate income for the commercial banks. This ratio is calculated by dividing the
amount of loans and advances by fixed deposit that is given below:

Loan∧ Advance
Loan and Advance to Fixed Deposit Ratio =
¿ Deposit

The loans and advances to fixed deposit ratio of NIC Asia Bank Limited is presented
in the table 4.13 below:

Table 4.13
Loan and Advance to Fixed Deposit Ratio (In Times)
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
LA 27980 31566 34965 39723 45320 49768 51234 54675 58764
628 976 433 805 359 546 567 643 565
FD 11328 13507 11866 13964 13589 13872 13903 13959 14123
636 370 679 638 370 345 234 845 456
Rati 2.47 2.34 2.95 2.84 3.33 3.59 3.69 3.92 4.16
o
Me          
an       3.2537
S.D                 0.6406
C.V                 0.1969
(Source: Appendix-XIII)

The table 4.13 shows the loans and advances to fixed deposit ratio of during 2009/10
to 2017/18. The lowest ratio is 2.34 times in 2010/11 and the highest ratio of 4.16
times in fiscal year 2017/18. It indicates that utilization of fixed deposit are in
increasing trend compared to its previous years.
Chart 4.13
Loan and Advance to Fixed Deposit Ratio (In Times)
 Ratio
4.50

4.00

3.50

3.00

2.50 Ratio

2.00

1.50

1.00

0.50

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

d) Loan and Advance to Total Deposit Ratio

oan and advances to total deposit ratio measures the extent to which the banks are
successful to utilize the outsider’s fund (total deposit) for generating profit can be
calculated by dividing the amount of loans and advances by the amount of total
deposits.
Loan∧ Advances
Loan and Advance to Total Deposit Ratio =
Total Deposit

The loans and advances to total deposit ratio of NIC Asia Bank Limited is presented
in the table 4.14 below.

Table 4.14
Loan and Advance to Total Deposit Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
LA 27980 31566 34965 39723 45320 49768 51234 54675 58764
628 976 433 805 359 546 567 643 565
TD 37611 40920 47730 53072 64674 68235 75645 76567 84567
202 627 993 319 848 426 434 654 897
Rati 0.74 0.77 0.73 0.75 0.70 0.73 0.68 0.71 0.69
o
Me           72.364
an       1
S.D                 2.9612
C.V                 0.0409
(Source: Appendix-XIII)
Chart 4.14
Loan and Advance to Total Deposit Ratio
 Ratio
0.78

0.76

0.74

0.72
Ratio
0.70

0.68

0.66

0.64

0.62
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The table 4.14 shows the loans and advances to total deposit ratio of NIC Asia Bank
Limited during 2009/10 to 2017/18. The lowest ratio of loans and advances to total
deposit is in fiscal year 2015/16 and the highest ratio is 75% in fiscal year 2010/11.
Fixed Deposit to Total Deposit Ratio

Fixed deposit gives higher interest than other deposit in every commercial bank and
can be withdrawn only after its maturity. This ratio is calculated in order to find out
the proportion of fixed deposit with respect to the total deposit. It is calculated by
dividing the amount of fixed deposits by the amount of total deposit, which is given
below:

¿ Deposit
Fixed Deposit to Total Deposit Ratio =
Total Deposit
The fixed deposit to total deposit ratio of NIC Asia Bank Limited is presented in the
table 4.15 below:

Chart 4.15
Fixed Deposit to Total Deposit Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
FD 11328 13507 11866 13964 13589 13872 13903 13959 14123
636 370 679 638 370 345 234 845 456
TD 37611 40920 47730 53072 64674 68235 75645 76567 84567
202 627 993 319 848 426 434 654 897
Rati 0.30 0.33 0.25 0.26 0.21 0.20 0.18 0.18 0.17
o
Me                 0.2322
an
 S.D                 0.057
C.V                 0.2454
(Source: Appendix-XV)

The table 4.15 shows the fixed deposit to total deposit ratio of NIC Asia Bank Limited
during 2009/10 to 2017/18. According to the table the highest ratio of 2010/11 is
33.01% and in fiscal year 2015/16, 2016/17 it has recorded the lowest ratio of around
18%.

Chart 4.15
Fixed Deposit to Total Deposit Ratio
Ratio
0.35

0.30

0.25

0.20 Ratio

0.15

0.10

0.05

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

It indicates that thebank has high degree of variability or is inconsistent in holding

fixed deposit to total deposit.

Saving Deposit to Total Deposit Ratio

Saving deposit is for general people in every commercial bank. Its purpose is mainly
saving. Saving deposit stand midway between current and fixed deposit. These
deposits are not as freely withdrawal as current deposit. It can be calculated by
dividing the amount of saving deposit by the amount of total deposit which is
presented below:
Saving Deposit
Saving Deposit to Total Deposit Ratio =
Total Deposit
The saving deposit to total deposit ratio of NIC Asia Bank Limited is presented in the
table 4.16 below:

Table 4.16
Saving Deposit to Total Deposit Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
 SD 16294 15994 21915 26484 32843 36745 40567 43567 48765
680 564 374 280 446 634 834 823 345
TD 37611 40920 47730 53072 64674 68235 75645 76567 84567
202 627 993 319 848 426 434 654 897
Rati 0.43 0.39 0.46 0.50 0.51 0.54 0.54 0.57 0.58
o
Me                 50.12
an
S.D                 6.277
C.V                 0.1252
(Source: Appendix-XVI)

Chart 4.16
Saving Deposit to Total Deposit Ratio

Ratio
0.70

0.60

0.50

0.40 Ratio

0.30

0.20

0.10

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The table and chart 4.16 shows the saving deposit to total deposit ratio of NIC Asia
Bank Limited during 2009/10 to 2017/18. The saving deposit to total deposit ratio is
in increasing trend every year. Its figures of 2017/18 has increased to around 60%. It
has recorded lowest figure below 40% in 2010/11. It indicates that the bank is
consistent.

4.1.5 Profitability Ratio

Profitability is the mirror of success for every commercial bank. Profit is the
difference between revenues and expenses over a period of time. Profit is the ultimate
output of a commercial bank and it will have no future if it fails to make sufficient
profits. Therefore, the financial manager continuously evaluates the efficiency of the
bank in terms of profits. There are many measure of profitability. Each relates the
returns of the firm to its sales, assets, and equity or share value. As a group, these
measures allow the analyst to evaluate firm's earning with respect to given level of
sales, a certain level of assets, the owners investments or share value. The
profitability ratios in this study are calculated to measure the operating efficiency
ratios calculated in this study.

a) Return on Total Asset

b) Return on Net Worth
c) Return on Total Deposit
d) Interest Earned to Total Assets Ratio
e) Net Operating Profit to Total Assets Ratio
a) Return on Total Asset
Return refers to profit after interest and taxes. Total assets deals with those assets that
appear on the assets side of balance sheet .This ratio is a useful measurement of the
profitability of all financial resources invested in the bank’s assets. The return of
assets (ROA) or profit to assets ratio is calculated by dividing the amount of net profit
by the amount of total assets.
Net Profit After Tax
Return on Total Assets =
Total Assets

The return on total assets ratio of NIC Asia Bank Limited is presented in the table
4.17 below:

Table 4.17
Return on Total Asset
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
NP 50879 89311 95863 94369 95910 10934 11200 11423 11987
AT 8 5 8 8 7 55 43 42 85
TA 42717 46736 54364 61152 73589 76234 79806 83234 87234
125 204 428 965 846 564 545 567 567
Rati 0.01 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01
o
Me          
an       1.4774
 SD                 0.2279
CV                 0.1542
(Source: Appendix-XVII)

The table 4.17 shows the return on total assets ratio of NIC Asia Bank Limited during
2009/10 to 2017/18. Bank has a v e r a g e r a t i o o f 0 . 0 1 . It indicates that bank has
been successful to generate more profit than other banks by using its total assets has
lower degree of variability or is consistent in generating more net profit by using total
assets in a systematic way.

Chart 4.17
Return on Total Asset

Ratio
0.03

0.02

0.02
Ratio

0.01

0.01

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

b) Return on Net Worth

Net worth or shareholders equity refers to the owner's claim on the assets of the bank.
The ROE measures the earned on the owner's investment. This ratio indicates how
well the banks have used the resources of the owners. Higher this ratio indicates
sound and efficient management. It is calculated by dividing net profit after tax by net
worth.

Net Profit After Tax

Return on Net Worth =
N et Worth

The return on net worth ratio of NIC Asia Bank Ltd is presented in the table 4.18
below:

Table 4.18
Return on Net Worth
 F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/
10 11 12 13 14 15 16 17 18
NPA 50879 89311 95863 94369 95910 10934 11200 11423 11987
T 8 5 8 8 7 55 43 42 85
NW 34392 39954 46320 52997 60834 65743 70234 75456 78987
05 78 10 08 11 22 57 73 62
Rati 0.15 0.22 0.21 0.18 0.16 0.17 0.16 0.15 0.15
o
Mea          
n       17.15
SD                 2.67
CV                 0.1559
(Source: Appendix-XVIII)
The table 4.18 shows the return on net worth ratio of NIC Asia Bank Limited during
2009/10 to 2017/18. The net profit to net worth of bank varies from maximum of 22%
in the year 2010/11 and minimum of 15% in fiscal year 2009/10,2016/17 and 2017/18.
Chart 4.18
Return on Net Worth

Ratio
0.25

0.20

0.15
Ratio

0.10

0.05

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The average ratio of during the study period, it indicates that NIC Asia Bank is
successful in utilizing the net worth more efficiently in generating more profit.

c) Return on Total Deposit

Deposits are mobilized in investment and loans to get profit. This ratio indicates the
percentage of profit earned by using the total deposit. It shows how efficiently the
management has utilized its deposit in profit making activities. It is calculated by
dividing the amount of net profit by the amount of total deposits which is presented
below:
 Net Income
Return on Total Deposit =
Total Deposit

The return on total deposit ratio of NIC Asia Bank Limited is presented in the table
4.19 below:

Table 4.19
Return on Total Deposit

F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/
10 11 12 13 14 15 16 17 18
NPA 50879 89311 95863 94369 95910 10934 11200 11423 11987
T 8 5 8 8 7 55 43 42 85
Total 37611 40920 47730 53072 64674 68235 75645 76567 84567
Depo 202 627 993 319 848 426 434 654 897
sit
Ratio 0.014 0.022 0.020 0.018 0.015 0.016 0.015 0.015 0.014
Mea          
n       1.644
S.D                 0.286
C.V                 0.174
(Source: Appendix-XIX)
The table 4.19 shows the return on total deposit ratio of during 2009/10 to 2017/18.

The figure implies that has been successful in utilizing the depositor’s fund more
efficiently in generating more profit. The Bank has not managed the deposit
efficiently and thus it has failed to generate more profit over the study period. It
implies that Bank has high degree of variability or is inconsistent in generating profit
and Bank has lower degree of variability or is more consistent in generating profit by
employing the deposit efficiently.

Chart 4.19
Return on Total Deposit
 Ratio
0.025

0.020

0.015
Ratio

0.010

0.005

0.000
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

d) Interest Earned to Total Assets Ratio

There are different sources of income for financial sector or commercial bank interest
earning is the major source of a commercial bank. This ratio measures how much
interest has been earned in different years by mobilizing assets of the bank. Generally
banks generate interest income through loan and advances, investments, overdraft, hire
purchase finance and loan given to priority sectors. The ratio can be calculated by
using the following formula:

Interest Earned
Interest Earned to Total Assets Ratio =
Total Asset
The interest earned to total assets ratio of NIC Asia Bank Limited is presented in the
table 4.20 below:

Table 4.20
Interest Earned to Total Assets Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/
10 11 12 13 14 15 16 17 18
Int 31486 43261 47248 46273 47429 49345 51989 52874 55234
Earn 05 40 87 35 75 62 89 56 52
ed
TA 42717 46736 54364 61152 73589 76234 79806 83234 87234
125 204 428 965 846 564 545 567 567
Rati 0.07 0.09 0.09 0.08 0.06 0.06 0.07 0.06 0.06
o
Mea          
n       7.22
SD                 1.098
CV                 0.1521
(Source: Appendix-XX )
The table 4.20 shows the interest earned to total assets ratio of during 2009/10 to
2017/18. On an average, Bank has the highest ratio of 9%. It implies that it have been
managing the assets efficiently and earning more interest out of it. It is consistent or
have lower degree of variability in earning interest by the proper use of its total assets
over the study period.
 Chart 4.20
Interest Earned to Total Assets Ratio

Ratio
0.10
0.09
0.08
0.07
0.06
Ratio
0.05
0.04
0.03
0.02
0.01
0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

e) Net Operating Profit to Total Assets Ratio

Net operating profit is the profit before interest and taxes (EBIT). When financial
charges are significant then it is appropriate for the comparative study, to compute the
net operating profit to total assets ratio rather than the return on assets ratio. This ratio
is useful to measure the profitability ratio before interest and taxes to all financial
resources invested in the bank’s assets. The following formula is used to calculate the
net operating profit to total assets ratio:
Net Operating Profit
Net Operating Profit to Total Assets Ratio =
Total Asset

The net operating profit to total assets ratio of NIC Asia Bank Limited is presented in
the table 4.21 below:

Table 4.21
Net Operating Profit to Total Assets Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/1
10 11 12 13 14 15 16 17 8
NO 57923 10152 10570 11459 98257 11234 12674 13076 13542
P 1 13 56 74 9 53 35 54 34
TA 42717 46736 54364 61152 73589 76234 79806 83234 87234
125 204 428 965 846 564 545 567 567
Rati 0.01 0.02 0.02 0.02 0.01 0.01 0.02 0.02 0.02
o
Me          
an       1.652
 SD                 0.284
CV                 0.172
(Source: Appendix-XXI)

Chart 4.21
Net Operating Profit to Total Assets Ratio

Ratio
0.03

0.02

0.02
Ratio

0.01

0.01

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

The table and chart 4.21 shows the net operating profit to total assets ratio of during
2013/14 to 2017/18. On an average it has the highest ratio of 2%. It implies that the
bank have been successful in managing their assets efficiently to generating more
profit. It implies that Bank has high degree of variability or is inconsistent in
generating operating profit and Bank has lower degree of variability or is more
consistent in generating operating profit by employing the total efficiently.

4.1.6 Other Ratios

Above stated ratios, throw light on various aspects of bank. Management, investors
and creditors can get information regarding their interest. Some ratios are dealt here
which provide more knowledge about the performance of the bank they are listed
below:
a) Earning Per Share (EPS)
b) Divided Per Share (DPS)
c) Dividend Payout Ratio (DPR)
d) Price-Earning Ratio( P/E Ratio)
a) Earning per Share
The firm's Earning per Share are generally of interest to present or prospective
Stockholders and management. The EPS represents the amount earned on behalf of
each outstanding share of common stock. They are closely watched by investing
public and are considered an important indicator of the firm's success. EPS is
calculated as follows:
Net Profit After Tax
EPS=
No of ShareOutstanding
The EPS of NIC Asia Bank Limited is presented in the table 4.22 below:

Table 4.22
Earning Per Share (In Rs)
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/1 2015/1 2016/1 2017/1
10 11 12 13 14 5 6 7 8
NPA 50879 89311 95863 94369 95910 10934 11200 11423 11987
T 8 5 8 8 7 55 43 42 85
NOS 16000 20000 24000 27600 28980 40200 45400 50600 56700
Rati 31.80 44.66 39.94 34.19 33.10 27.20 24.67 22.58 21.14
o
Mea                 31.03
n
SD                 7.94
CV                 0.256
(Source: Appendix-XXII)
Chart 4.22
Earning Per Share (In Rs)

Ratio
50.00
45.00
40.00
35.00
30.00
Ratio
25.00
20.00
15.00
10.00
5.00
0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

From the table and chart 4.22 we can see that on an average, bank has the highest
amount of EPS of Rs. 45. It states that NIC Asia bank in EPS over the study period has
lowest S.D. which indicates the low fluctuation (more homogeneity) in EPS over the
study period which indicates it has low degree of variability, or is consistent in
providing EPS amount to the equity holders on a per share basis over the study period.

b) Divided Per Share (DPS)

Dividend per share is calculated to know proportion of the earnings distributed with
the help of following formula:
¿
DPS = Earning Paid ¿ Shareholders Number of Common Shares Outstanding

The DPS of NIC Asia Bank Limited is presented in the table 4.23 below:

Table 4.23
Dividend per share (In Rs)
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/
10 11 12 13 14 15 16 17 18
Divide 18947 33684 32210 27600 17540 18560 25098 30987 36734
nd 4 2 6 0 4 9 7 6 5
NOS 16000 20000 24000 27600 28980 40200 45400 50600 56700
Ratio 11.84 16.84 13.42 10.00 6.05 4.62 5.53 6.12 6.48
Mean                 8.99
SD                 4.25
CV                 0.47
(Source: Appendix-XXIII)
Chart 4.23
Dividend per share (In Rs)

Ratio
18.00

16.00

14.00

12.00

10.00 Ratio

8.00

6.00

4.00

2.00

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

According to table and chart 4.23 we can see that on an average, bank has the highest
amount DPS of Rs.16.84 in 2010/11. Its DPS has increase over the period and
maintains a low DPS which means that the Bank has been able to provide maximum
profit to equity holder on a dividend basis over the study period. Bank with lowest
C.V. indicates it has low degree of variability, or is consistent in providing DPS
amount to the equity holders on a per share basis over the study period.
c) Dividend Payout Ratio (DPR)
The dividend payout ratio represents the percentage of net profit after tax distributed
as dividend and the percentage retained as revenue and surplus for the growth of the
bank. It is determined by dividing dividend per shares (DPS) by earning per shares
(EPS), as expressed below:

DPS
DPR =
EPS
The DPR of NIC Asia Bank Limited is presented in the table 4.24 below:

Table 4.24
Dividend Payout Ratio
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/
10 11 12 13 14 15 16 17 18
DPS 11.84 16.84 13.42 10 6.05 4.62 5.53 6.12 6.48
EPS 31.8 44.66 39.94 34.19 33.1 27.2 24.67 22.58 21.14
Rati 0.37 0.38 0.34 0.29 0.18 0.17 0.22 0.27 0.31
o
Mea          
n       28.14
SD                 7.64
CV                 27.16
(Source: Appendix-XXIV)

From the above table we can see that on an average basis Bank has the highest
percentage of payment ratio with 38% in 2010/11 which is before merger. The ratio
appears to be in increasing trends which means it has that distributed comparatively
more proportion of dividend out of its earning. In other words, it remained more
successful of attract the investors.

Chart 4.24
Dividend Payout Ratio
 Ratio
0.40

0.35

0.30

0.25
Ratio
0.20

0.15

0.10

0.05

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

d) Price Earning Ratio (P/E Ratio)

P/E ratio is a valuation ratio of a company's current share price compared to its per
share earnings. Generally a high P/E ratio means that investors are anticipating higher
growth in the future. It is obtained by dividing market value per share by Earning per
share.

Market Value per Share

P/E ratio =
Earning Per Share
The P/E ratio of NIC Asia Bank Limited is presented in the table 4.25 below:

Table 4.25
Price Earning Ratio (In Times)
F/Y 2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/
10 11 12 13 14 15 16 17 18
MVP 816 575 653 700 941 830 760 640 540
S
EPS 31.8 44.66 39.94 34.19 33.1 27.2 24.67 22.58 21.14
Rati 25.66 12.88 16.35 20.47 28.43 30.51 30.81 28.34 25.54
o
Mea          
n       24.33
SD                 6.38
CV                 0.26
(Source: Appendix-XXV)
Chart 4.25
Price Earning Ratio (In Times)
 Ratio
35.00

30.00

25.00

20.00 Ratio

15.00

10.00

5.00

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

From the above table and figure we can see that on an average basis bank has the
highest P/E ratio with 30.51 times. PER has increase post merger which means
investors of the bank are anticipating higher growth in the future and are well
satisfied with the performance of the bank.

4.2 Major Findings of the Study

4.2.1 Liquidity Ratio

a) The liquidity position of the banks reveals that: The average current ratio of
banks i.e. It shows that the current ratio of all the sample banks is below the
standard ratio 2:1. It is clear that has slightly more liquidity. But it can’t be
concluded that all the banks are in poor condition with low current ratio. (Table
4.1)

b) The average ratio of cash and bank balance to total deposit of it reveals that on
an average basis Bank has more liquid to serve its depositors in time with
enough case in hand. (Table 4.2)

c) The average ratio of cash and bank balance to current assets of it indicates that
the ratio of Bank is on higher side.. It implies that all the bank do not have
enough cash balance with respect to current assets. However Bank seems to be
in better position. (Table 4.3)

d) The average loans and advances to current assets ratio of it indicates that the
ratio of Bank is higher. It can be concluded that Bank has been successful in
mobilizing its current assets as loan and advances. (Table 4.4)
 e) The average Investment on Government Securities to current Assets ratio of it
implied that the ratio of Bank is higher. (Table 4.5)

4.2.2 Leverage Ratio

a) The leverage ratio of the banks reveals that the average ratio of total debt to
shareholder’s equity of has highest ratio of 11.42 times means, debt capital
financing is more than 12.95 times of its shareholder equity over the study
period where as Bank has lowest ratio (i.e. 5.5 times) of total debts to
shareholders equity. (Table 4.6)
1. The average ratio of total debt to total assets of it indicates that Bank
has highest ratio (i.e. 91.55%) of total debt into total assets over the
study period and Bank has lowest ratio (i.e.91.33%) of total debt total
assets over the study period. (Table 4.7)
b) The average ratio of shareholders equity to total assets of Bank has higher ratio
of shareholders equity to total assets than other sample banks during the study
period. It indicates that Bank has proper utilized its shareholder’s equity in
assets. (Table 4.8)

4.2.3 Capital Adequacy Ratio

a) The leverage ratio of sampled banks reveals that the average ratio of net worth
to total deposit ratio of Bank has higher ratio of net Worth to total deposit
ratio. (Table 4.9)
b) The average ratio of net worth to total assets ratio of has higher ratio of net
worth to total assets ratio. It indicates that has proper utilized its net worth in
assets. (Table 4.10)

4.2.4 Activity Ratio

a) The activity ratio of selected banks reveals that: The average ratio of
Investment to total deposit ratio of has higher ratio of investment to total
deposit ratio. It can be concluded that is investing more deposit than Bank.
(Table 4.11)
b) The average ratio of loan and advances to saving deposit of it can be concluded
that Bank as been successful in using the depositor’s saving deposit properly in
 loan and advances than Bank. (Table 4.12)
c) The average ratio of loans and advances to fixed deposit of i t implies that on an
average Bank has proper utilization of fixed deposit than Bank during the study
period. (Table 4.13)
d) The average ratio of Loans and advances to deposit of it implies that on an
average Bank has proper utilization of total deposit than Bank. (Table 4.14)
e) The average ratio of fixed deposit to total deposit of are 23.21%. It indicates
that the liquidity position of Bank is better (Table 4.15)
f) The average ratio of saving deposit to total deposit of it indicates that Bank has
been more successful in mobilizing its saving deposits on total deposit. (Table
4.16)

4.2.5 Profitability ratio

a) The profitability ratio of banks reveals that: The average ratio of return on total
assets of it indicates that has been successful to generate more profit than other
banks by using its total assets. (Table 4.17)
b) The average ratio of return on net worth of it indicates that Bank has successful
in utilizing the net worth more efficiently in generating more profit. (Table
4.18)
c) The average ratio of return on total deposit of it indicates that Bank has
successful in utilizing the depositor’s fund more efficiently in generating more
profit. (Table 4.19)
d) The average of interest earned to total assets ratio of it implied that have been
managing its assets efficiently and earning more interest. (Table 4.20)
e) The average of net operating profit to total assets ratio of it implied that has
been successful in manage its assets efficiently to generating more profit.
(Table 4.21)
4.2.6 Other Ratios

a) The average ratio of earning per share of it indicates that Bank has been able to
provide its maximum profit to equity holder on a per share basis. (Table 4.22)
b) The average ratio of dividend per share of it indicates that Bank has been able
to provide maximum profit to equity holder on a dividend basis over the study
period. (Table 4.23)
c) The average of dividend payout ratio of average ratio appeared greater in
 which signifies that distributed comparatively more proportion of dividend out
of its earning over the study period. (Table 4.24)
d) The average of price earning ratio of it indicates that investors of anticipating
higher growth in the future than investors of Bank are well satisfied with the
performance of the bank. (Table 4.25)