Commercial Banking Assignment: Analysis of Assets and Liabilities of A Bank
Commercial Banking Assignment: Analysis of Assets and Liabilities of A Bank
ASSIGNMENT
SUBMITTED BY:
AYAZ QAISER, UNSA HAIDER ZAIDI
MEHRAN USMANI, SARDAR MOHSIN
BBA-7B
ANALYSIS
OF
ASSETS AND LIABILITIES
NIB started as NDLC-IFIC Bank which was incorporated in March 2003, as a public
limited company. It started its operations in October 2003 with paid up capital of Rs.
1.2bn with amalgamation of NDLC and of IFIC’s Pakistan operations and their assets
& Liabilities, and subsequently those of Credit Agricole Indosuez Pakistan in April
2004. Temasek Holdings acquired 25% shareholding in NIB in March 2005 through
Bugis Investments which was enhanced to over 70% in June 2005. NIB has branches
all over Pakistan.
NIB vision is to rank amongst top 5 banks in Pakistan. Therefore it acquired majority
shares of PICIC on June 28 2007, which gave control of its subsidiaries (commercial
bank –PCBL, an asset management company - PICIC AMC and PICIC Insurance).
Legal merger of PICIC & PCBL into NIB took place on 31st December ’07, once all
regulatory approvals were obtained. Post merger NIB total assets increased to Rs.
176.6 bn as of 31st December 2007, further increasing to Rs 180 bn as of 31st
September ’08. Present paid up capital of Rs. 40.4 bn is highest amongst banks in
Pakistan. Temasek Holding remains the largest single shareholder with approximately
74%shareholding.
NIB has almost 4500 employees, working in the different business units of the bank
which include:
The deposits and rates per annum under Term Deposits Scheme are as follows:
FINANCIAL STATEMENTS
(ASSETS AND LIABILITIES)
NIB Bank Limited (Formerly NDLC - IFIC Bank Limited)
Balance Sheet
As At December 31, (2007 – 2009)
Liabilities
Represented By:
a. Current Ratio
The current ratio of a firm measures its short-term solvency, i.e. its ability to meet
short-term obligations
Current Assets CA
Current Ratio = ---------------------- = ----
Current Liabilities CL
Quick Assets QA
Quick Ratio = -------------------- = ----
Current Liabilities CL
LIQUIDITY