Message from the Chairman

Dear Shareholders,

The financial year of 2015 to 2016 has been another excellent year for us at Nepal Investment Bank Limited (NIBL). The end of this year marks our 30th year of providing efficient banking services in Nepal. With our strong financial performance and service we have continually, established ourselves as one of the leading banks of Nepal.


The bank which started business with a paid up capital of NPR 30 million 30 years ago, today has the highest paid-up capital (NPR 8.7 billion) amongst the financial institutions in Nepal, and retains a cash reserve of 7.5 billion. At NIBL we strongly believe that banks with strong capital will be able to face any challenges from the market, and, side by side, create value for all our stakeholders.


The Fiscal Year of 2015-2016 (FY 2015/1016) was very rewarding for NIBL. In compliance with the Nepal Rashtra Bank's (NRB) directive to increase the public shareholding from 20% to 30%, NIBL made a Further Public Offering (FPO) of 9,069,388 equity shares of NPR 100, each at a premium price of NPR 601 (premium of  NPR 501 per share). The FPO issue was a grand success measured by the overwhelming response from investors.


From this issue, the bank raised NPR 5.45 billion of which NPR 906.93 million is paid up capital, and NPR 4.54 billion is share premium. After this issue, our promoter public shareholding structure became 70:30 from previous a previous ratio of 80:20. Our paid up capital increased to NPR 8.7 billion (including the proposed bonus share for FY 2015/16), and our reserves soared to NPR 7.5 billion. The total shareholders' fund of our bank thus increased to NPR 16.2 billion.


Another significant development for NIBL is the signing of a Memorandum of Understanding (MOU) with Ace Development Bank Ltd, a leading development bank based in Kathmandu on August 5, 2016, to acquire the latter. We believe this acquisition will bring economies of scale and further strengthen our capital base, customer base, branch networks, market share, and lend support to NRB's initiative on consolidating the banking sector. We aim to complete the acquisition process as soon as possible.


In FY 2015/16 our deposits increased by 19.9 percent, reaching NPR 108.6 billion, compared to last year’s figure of NPR 90.6 billion. Similarly, lending by the bank increased by 28.5 percent, reaching NPR 87.0 billion compared to the previous year’s figure of NPR 67.6 billion. The operating profit of the bank also increased by 32.6 percent reaching NPR 4.1 billion. Additionally, the net profit of the bank grew by 30 percent and stands at NPR 2.55 billion compared to last year’s figure of NPR 1.96 billion. The Non-Performing Asset (NPA) ratio of the bank also declined to 0.68 % against 1.25 % last year. We will continue our effort to further minimize the NPA level in upcoming years.


We currently offer our customer base of over six hundred thousand people a broad range of smart, flexible products and services through our network of 47 branches, 84 ATMs, and 52 branchless banking outlets.


Our human resource development also continues to be an integral part of our bank. We believe strongly in focusing on extensive training for our workforce so that they have the necessary skills to effectively overcome challenges and meet the financial needs of our customers. We truly believe our well-trained and motivated staff are the most valuable assets of our bank.


We, at NIBL, are committed to building and maintaining a strong relationship with the larger community and as part of our Corporate Social Responsibility (CSR) we provide ongoing support to our varied chosen social causes this year and in the years to come.


I would like to express my gratitude and appreciation to our energetic and hardworking staff and efficient management team. Their tireless and dedicated performance has led to another fruitful year for our bank. I would like to thank all our regulators for providing us full support in our endeavors. I also wish to express my gratitude to my colleagues on the NIBL board for their ongoing valuable contributions.




Prithvi B. Pandé




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