The ratio of non-interest income to total revenue rose from 24% to 25% in the year through the introduction of new high-value transaction banking services like SMS banking, ATM debit cards and retail bullion trade. A major achievement was cost management and capping the growth of operating expenses at 14%, against a backdrop of a 32% increase in lending, a 20% growth in the branch network and a 9% increase in the workforce.
The NPL ratio was cut to 1.1% of the total loan portfolio, yielding a significant improvement in asset quality and bad debt recovery. The share price appreciated by 92% in 2006, reflecting strong investor confidence and market expectations of higher future earnings.
Last year, NIC Bank became Nepal’s first financial institution to be ISO 9001:2000 certified for Quality Management System, as well as the first to be provided a line of credit by IFC and the first to import and sell gold.
The group has earned a reputation as one of the most professionally run and financially sound companies in Nepal, with the focus on innovation and a strong corporate governance model. Last year’s massive growth in profits with a significant improvement in asset quality places NIC Bank at the top of its peer group.
Sashin Joshi, CEO, says: “It is a matter of immense pride for us to be recognised as The Bank of the Year. This holds special significance to us because we are the only bank in Nepal that has never been managed and/or owned by foreign banks to have been given this award in the past six years.
“Certain core strengths have anchored our journey of transformation and growth. These are our outstanding employees, our focus on innovation, our use of technology, our understanding of the market dynamics and our unwavering adherence to corporate governance. It is our people, their energy and passion that have made our achievements possible.”
