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Page 1 of 3 Dear Shareholders,
Your bank has recorded another solid performance during this financial year amidst all the challenging conditions. Your bank has continued its long term vision to consolidate itself as the leading bank in the country by pursuing a strategy of growth and consolidation while delivering quality services and shareholder returns.
In the fiscal year 2007/08, number of commercial banks rose substantially to 25 from 17 in the previous year. However, despite intense competition among the banks and challenging economic atmosphere and political uncertainty, Nepal Investment Bank Limited attained a substantial market share of 8.8%, 10.4% and 6.9% in terms of deposits, loans and total bank assets. This year we have proposed 33.33% bonus share and 7.5% cash dividend from the profit of fiscal year 2007-08 and 50% right share on Bank’s paid up capital after issuance of bonus shares.
In order to consolidate the Bank’s existing customer base as well as attract potential client, your Bank has been active in launching new products and revising existing products and schemes. In FY 2007-08, the Bank launched a new deposit product called “Afnai Bachat Khata” whereby customers can open account with a minimum balance of NPR 1 only. This product has been extremely successful in increasing the Bank’s clientele base. The Bank also revived its E-Zee Saving Deposit Scheme with a new revised interest rates starting from 2.75% to 4 % p.a. on daily basis. The Bank has also launched Mobile Top-up through e-banking and also Online Bill Payment facility is now active to make various utilities bill payment online. After a long in-depth study, the Bank has finally decided to introduce new banking software “Finacle”, which is a world class banking solution, produced by Infosys- a world renowned IT Company based in India. The work on the project has already started and the Bank targets to complete the entire project before the end of current fiscal year. This software will help boost the Bank with necessary IT platform and MIS to support extensive future growth of the Bank.
The Bank opened three new branches in the FY 2007-08; with these branches the total number of branches has reached 19. Moreover, we are planning to add another 8-10 branches in the FY 2008-09. We now have 616 staff operating among all 19 branches out of which 234 are female staffs and 74 staff members who have completed more than 10 years of service in the institution.
The Bank deployed additional 22 ATM’s during the year, totaling to 53 ATM’s in our network including our consortium member’s ATM. The Bank also leads in card issuance as it issued over 140,000 cards and altogether there are 175,000 card holders in NIBL network now. We are also in the process of adding MasterCard services in addition to our existing Visa brand. The Bank also made an arrangement with Kantipur Publication for issuing co-branded VISA debit cards to every new subscriber of Kantipur daily which could help in promoting our brand name as well as increasing our customer base.
With a strategy to strengthen the Bank’s position in worker’s remittance market, the Bank tied up with eight new remittance companies/exchange houses in Qatar, Saudi Arabia, UAE and Israel. The Bank also appointed Disbursement Agents at 46 new locations, raising the total number of remittance disbursement locations to 155 in order to facilitate banking services to Nepalese workers. In order to further consolidate its position in the remittance market, the Bank plans to increase the number of remittance disbursement agents in Nepal to 200 by the end of 2008-09.
The operating profit of the Bank grew to Rs. 1013 million from Rs. 857 million recorded the previous year, an increase of Rs 156 million. Provisions for Tax were Rs 323.23 million, making our Bank one of the top tax payers in Nepal, with a result of an after tax profit growth of 39%. The Bank has registered a record increase in net profit of Rs. 196 million to Rs. 697 million, one of the highest net profit increase of any bank in Nepal.
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Investor Relations 
