pg. 1LETTER OF TRANSMITTAL11 August, 2015To,Leo Vashkor DewriSenior LecturerDepartment of Business Administrationast !est "ni#ersit$%Subject:Su&mission of report on '(atio Ana)$sis of*++ and "+B Bank, %Dear Sir,!ith due respect, - wou)d )ike to su&mit to $ou the (eport on*++ and "+B Bank%- found the research program #er$ interesting which was assigned on me as a re.uirement for the /anagement of +ommercia) Bank course% - am prett$ much optimistic that the preparation of this (eport wou)d enrich m$ practica) know)edge%- ha#e de#oted m$ &est effort to make the report an informati#e one% - sha)) remain e#er gratefu) to $ou for rendering me the opportunit$ of working on such an interesting fie)d% -f $ouneed an$ c)arification regarding this report, - sha)) &e a#ai)a&)e for this%0ours sincere)$Sra&oni (ahmanDepartment of Business Administrationast !est "ni#ersit$AcknowledgementAt the #er$ &eginning, a)) praises for a)might$ A))ah for ena&)ing me to comp)ete the report with good and sound hea)th% - am high)$ appreciati#e to A))ah that - was a&)e to come to the Products offering by NCC bank: Loan ProductsPersonal LoanEducation LoanCar Loan SchemeHouse Building FinancingHouse Repairing & Renovation LoanHome Improvement LoanConsumer Finance Scheme Deposit ProductsCurrent A/CSavings Ban !eposit A/CSpecial "otice deposit A/CSpecial Savings SchemeSpecial !eposit SchemePremium #erm !eposit A/CInstant Earnings #erm !eposit$one% !ou&le Program$one% #riple Program'oungster Account'oungster $a(imums Account'oungster $one%plant Scheme SME BankingSmall Business LoanLease Finance)oring Capital LoanFestival Business LoanFestival Personal LoanCardsCredit Cards!e&it cardsRemittance products)age Earners )el*are !eposit Pension Scheme+verseas Emplo%ment Loan SchemeSpecial Interest rate on !eposit and Loan pg. 2pg. 3(1A2 pg. 4ROA (%) 2010 2011 2012 2013 2014NCC 2.84 2.12 1.14 0.92 1.16UCB 1.98 1.97 0.84 1.41 1.492010 2011 2012 2013 2014012345678NCC UCBAn indicato o! "o# po$ta%&' a co(pan) i* '&ati+' to it* tota& a**'t*. ROA gi+'* anid'a a* to "o# ',ci'nt (anag'('nt i* at -*ing it* a**'t* to g'n'at' 'aning*.Ca&c-&at'd%)di+idingaco(pan).*ann-a& 'aning*%)it*tota& a**'t*/ ROAi*di*p&a)'d a* a p'c'ntag'. 0o('ti('* t"i* i* '!''d to a* 1't-n on in+'*t('nt1.2'' in NCC in 2010 ROA #a* 2.84% 3 t"'n it inc'a*'* to 2.12% in 2011.A!t' t"atit d'c'a*'* gad-a&&) in 2012/ 2013 32014 accoding to 1.14%/ 0.92% 3 1.16%.accoding to gap" NCC i* in %'tt' po*ition at"' t"an UCB.RO45 RO4 (%) 2010 2011 2012 2013 2014NCC 25.38 18.98 11.81 8.96 10.87UCB 32.28 24.77 9.29 15.85 17.07 pg. 52010 2011 2012 2013 201405101520253035NCC UCB6"' a(o-nt o! n't inco(' 't-n'd a* a p'c'ntag' o! *"a'"o&d'* '7-it). R't-non'7-it)('a*-'*acopoation.*po$ta%i&it)%)'+'a&ing"o#(-c"po$t aco(pan) g'n'at'* #it" t"' (on') *"a'"o&d'* "a+' in+'*t'd.1. 2''/ in 2010RO4 #a* 25.38%. A!t' t"at it d'c'a*'* gad-a&&). Accoding to gap" UCB i* in%'tt' po*ition on RO4.*on3performing )oan ratio2Nonp'!o(ing &oan atio (%)2010 2011 2012 2013 2014NCC 2.27 2.68 5.51 5.56 7.49UCB 1.20 1.79 3.69 4.03 4.62pg. 62010 2011 2012 2013 2014012345678NCC UCB-n &oth &anks, it increases $ear &$ $ear% And "+B has )ow percentage than *++% So, "+B has &etter position here%Earning per share: 480 (%) 2010 2011 2012 2013 2014NCC 5.33 3.70 2.06 1.49 1.87UCB 2.61 3.52 1.90 3.66 4.392010 2011 2012 2013 20140123456NCC UCB-n *++ 4S is in decreasing pattern and in "+B it is in increasing position% So , earning of "+B is higher here% Di#idend per share2 9i+id'nd p' *"a' (%)2010 2011 2012 2013 2014NCC 32% 17% 10% 5% 10%UCB 25% 27% 10% 20% 30%pg. 72010 2011 2012 2013 20140%5%10%15%20%25%30%35%NCC UCBDi#idend pa$ing percentage is much higher in "+B &ank% Capital Adequacy Ratio:Capita& Ad'7-ac) Ratio (%)2010 2011 2012 2013 2014NCC 10.91% 11.26% 11.47% 11.87% 13.47%UCB 9% 10.87% 10.37% 11.53% 10.56%2010 2011 2012 2013 20140.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%16.00%NCC UCB+A( is higher in *++ &ank% So it is in &etter position in ade.uating capita)%Net Interest margin:N:; (%) 2010 2011 2012 2013 2014pg. 8NCC 4.38 4.31 3.89 2.93 2.56UCB 2.95 3.05 3.19 3.13 2.982010 2011 2012 2013 201400.511.522.533.544.55NCC UCB-nterest margin was f)uctuated o#er the $ears% -n )ast $ear it was higher in "+B% Net Operating Margin:NO; (%) 2010 2011 2012 2013 2014NCC 10.05 11.26 10.41 10.80 9.43UCB 6.04 5.50 4.90 5.48 5.782010 2011 2012 2013 2014024681012NCC UCB*++ had higher *1/ in )ast fi#e $ears than "+B% So, *++ was in &etter position in managing operatingre#enues% Earning power ratio:4aning po#' Ratio (%)2010 2011 2012 2013 2014NCC 12.91% 8.21% 8.73% 8.80% 5.99%pg. 9UCB 3.64% 3.54% 2.78% 3.15% 3.28%2010 2011 2012 2013 20140.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%NCC UCB*++ was in &etter position than "+B in earning power ratio%Net charge off:N't c"ag'o< (%)2010 2011 2012 2013 2014NCC(63230.14 =1425.28 > 835.65)? 63230.14@ 99.067%(72733.54 = 1938.30 > 547.95)? 72733.54@98.088%(79948.22 = 4369.02 > 1274.07)? 79948.22@96.13%(88167.20 = 4862.41 > 1371.94)? 88167.20@96.04%(90920.77 = 6735.52 > 1246.32)? 90920.77@93.96%UCB(93561 = 1673.78 >678.56)?93561@98.94% (115506 = 2786.43 >1174.35)?115506 @ 98.60%(136072 = 7678.56 > 1367.89)?136072@ 95.36%(148665 = 3766.9 > 1685.65)?148665@ 98.60%(174146 = 6169 > 1548.29)?174146@97.37%pg. 102010 2011 2012 2013 20140.910.920.930.940.950.960.970.980.991NCCUCB"+B had the higher net charge off than *++ &ank% So, *++ was in &etter position in )ast 5 $ears%+redit Deposit (atio2C'dit d'po*it Ratio (%)2010 2011 2012 2013 2014NCC 93.04 83 77 83 77.41UCB 82.75 82.81 79.79 79.81 78.922010 2011 2012 2013 2014020406080100NCC UCBBoth &anks were a)most same here% pg. 111perating efficienc$ ratio2Op'ating 4,ci'nc) Ratio (%)2010 2011 2012 2013 2014NCC 59.64% 69.73% 74.2% 29.52% 30.90%UCB 55.74 65.74 53.38 73.98 74.432010 2011 2012 2013 20140.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%NCC UCB"+B had &etter position in managing operating efficienc$%Cost income ratio:Co*t inco('Ratio (%)2010 2011 2012 2013 2014NCC 54.65 70 72.05 76.61 76.39UCB 39.74 35.74 43.38 42.52 42.672010 2011 2012 2013 2014020406080100NCC UCB*++ had )arger cost income ration in )ast 5 $ears than "+B% So, *++ was in &etter position%pg. 124rice earning ratio28ic' 4aning Ratio (%)2010 2011 2012 2013 2014NCC 12.91 8.21 8.73 8.80 5.99UCB 30.23 10.84 12.42 6.85 6.682010 2011 2012 2013 201405101520253035NCC UCBAs "+B had )ower earning here, so *++ was in &etter position%*et Asset Va)ue2N't a**'t +a&-' (%)20102011 2012 2013 2014NCC 20.7919.50 17.46 17.34 17.87UCB 26.8624.95 22.06 21.7 20.322010 2011 2012 2013 2014051015202530NCC UCB*et Asset #a)ue of "+B was much higher in )ast 5 $ears rather than *++% So, "+B was in good position%pg. 13Euity mu!tip!ier:47-it) (-&tip&i' (%)2010 2011 2012 2013 2014NCC 10.80 10.91 12.36 11.32 11.73UCB 16.61 10.58 11.42 11.04 11.832010 2011 2012 2013 2014024681012141618NCC UCB6"'atioo! aco(pan)A* tota& a**'t* toit* *tocB"o&d'A* '7-it). 6"''7-it)(-&tip&i' i* a ('a*-'('nt o! a co(pan)A* $nancia& &'+'ag'. Co(pani'* $nanc't"'p-c"a*'o!a**'t*'it"'t"o-g"'7-it)od'%t/*oa"ig"'7-it)(-&tip&i'indicat'* t"at a &ag' potion o! a**'t $nancing i* %'ing don' t"o-g" d'%t. 6"'(-&tip&i' i* a +aiation o! t"' d'%t atio. Ca*t %ot" %anB* a&(o*t in *a(' po*ition.*um&er of shares2 No. o! *"a'*(o! 6D 10 'ac")2010 2011 2012 2013 2014NCC 450.13 594.16 695.17 764.69 802.92UCB 291.00 727.49 836.61 836.61 836.61pg. 142010 2011 2012 2013 201402004006008001000NCC UCBEmp!oyee producti"ity ratio:4(p&o)'' pod-cti+it) atio (%)2010 2011 2012 2013 2014NCC 10157.99?1622@ 6.2613923.05?1716@8.1115606.88?1811@8.6216227.89?2192@7.4015871.73?2277@ 6.97UCB 7853.88?2738@2.869294.37?2982@3.1210177.66?3374@3.0212398.58?3445@3.6015209.39?3679@4.132010 2011 2012 2013 2014012345678910NCCUCB*++5s emp)o$ees were more producti#e in )ast fi#e $ears%Market "a!ue per share:;aB't2010 2011 2012 2013 2014pg. 15+a&-' p' *"a'NCC 68.80 30.40 18.20 13.10 11.20UCB 226.70 43.90 23.60 25.10 29.302010 2011 2012 2013 2014050100150200250NCC UCB/arket #a)ue of per share in "+B &ank was higher in )ast 5 $ears than *++ &ank% "+B had the &etterposition here%Net !oans to deposit:N't &oan* tod'po*it (%)2010 2011 2012 2013 2014NCC 93.04 89.65 82.49 89.75 86.01UCB 82.75 82.81 79.79 80.40 82.512010 2011 2012 2013 2014707580859095NCC UCBpg. 16Loan amount was higher in *++, so *++ had &etter position%Other Ratios could not be ound because o lack o inormationConclusionNCC BanB i* on' o! t"' (aEo %anB* o! o- co-nt). 6"') a' t"' &'ading %anB in t"i*$'&d. A!t' ana&)Fing +aio-* atio* 'gading NCC BanB t"o-g"o-t t"' pap' it i*!o-nd t"at it i* doing '&ati+'&) #'&&. :t *"o-&d po+id' a &itt&' (o' conc'ntation inpo$ta%i&it). Goc-*ing on t"' atio ana&)*i* it can %' *aid t"at it "a* 7-it'co(p'titi+' a* #'&& a* %'tt' po*ition in t"' %anBing ind-*t).pg. 17