Annual Report 2010 - Ministry of Finance and Planning

4 | State Owned Enterprises (SOE)National Savings Bank(NSB)The performance of NSB in 2010 wasstrong, showing signs of being able toreach the Government’s target of a Rs1 trillion asset base by 2020. The NSBis required to invest not less than 60percent of its deposits in governmentsecurities in terms of the NationalSavings Bank Act. At the end of 2010,71.8 percent of the bank’s assets havebeen invested in various securitieswhile only 20.3 percent of total assetswere held in the form of advances. Thebank’s non performing ratio decreasedfrom 3.5 percent in 2009 to 2.6percent by the end of 2010.NSB’s performance is commendablewith the bank holding 13.7 percent ofmarket share of the entire bankingindustry. However, the bank held82.1 percent of the total depositbase of Licensed Specialized Banks(LSB). The bank’s profit before taxhas increased up to Rs. 9.8 billionin 2010 from Rs. 6.9 billion in 2009.Significant increase in gains frominvestment in securities is the mainreason for the boost of the bank’sprofitability in 2010. The bank alsoventured in to mobilizing overseasremittances as a part of its promotionof savings. The foreign currencydeposits of the bank amounted toRs. 4.3 billion by the end of 2010which is a considerable increaseof 20.2 percent over the previousyear. The Bank sustained its “AAA”rating underscoring its excellentperformance in 2010.Table 4.8 > Key Performance Indicators of National Savings Bank2005 2006 2007 2008 2009 2010Number of Branches 128 114 117 123 123 186Number of Employees 2,890 2,900 2,867 2,883 2,915 3,050Assets (Rs. Bn) 222.1 235.5 270.2 294.3 354.4 403.2Deposits (Rs. Bn) 202.4 212.2 235.3 259.6 313.0 355.3Number of Deposits Accounts (Mn.) 14.6 15.1 15.4 15.6 16.3 16.7Foreign Currency Deposits (Rs. Mn.) 30.2 460.7 13,42.8 2,140 3,580 4,305Corporate & Retail Lending (Rs. Bn.) 25.4 33.8 54.0 56.3 68.3 81.7Profit Before Tax (Rs. Mn.) 3,457 3,501 3,301 3,100 6,944 9,788Profit After Tax (Rs.Mn.) 2,106 1,885 1,573 1,059 3,736 5,401Capital Adequacy Ratio -1 (%) 44.9 40.7 33.3 34.8 25.6 19.6Capital Adequacy Ratio-II (%) 21.8 11.7 12.2 19.4 22.0 16.4Non Performing Loans (Rs.Mn) 700 521 740 1,080 2,381 2,119Non Performing Loan Ratio (%) 2.7 1.5 1.4 1.9 3.5 2.6Rating (Fitch lka) AAA AAA AAA AAA AAA AAASource: National Savings Bank210