Nepal Investment Bank
A dramatic improvement in its profitability plus one of the strongest balance sheets among Nepali banks are the reasons why Nepal Investment Bank (NIB) is the judges’ choice for the award this year.
Despite a sharp increase in costs related to the opening of four branches in Nepal, NIB managed to boost net profit in the first half of 2003 by a stunning 103%. It lifted its ROE to 17% from just 11% at the end of 2002. And it posted gains in Tier 1 capital (28%) and assets (91%).
NIB’s balance sheet has been strengthened further by its success in shedding bad loans, which are a particular problem for Nepalese commercial banks. By the end of June 2003, it had lowered its ratio of non-performing assets to just 2% of total assets from 4.8% at the end of 2002.
As the only major bank in Nepal that does not have foreign banks as shareholders, NIB made significant improvements in its technology and services last year. These include the roll-out of debit cards for constant access to banking services, and telephone banking. It plans to launch internet banking and Visa credit cards soon.
Prithivi Bahadur Pande, chief executive director, said: “We provide innovation, excellence, delivery and care – we mean it.”
