REPORT:

MEASURES OF CENTRAL TENDENCY:

SHARES OF HIMALAYAN BANK LTD AND LAXMI BANK LTD.



SUBMITTED TO:
PRABHAT UPRETY


SUBMITTED BY:
Suraj Simkhada

KINGS COLLEGE , BABARMAHAL
DATE: 5/22/2014











Laxmi Bank Limited
Laxmi Bank was incorporated in April 2002 as the 16th commercial bank in Nepal. In
2004 Laxmi Bank merged with HISEF Finance Limited, a first generation financial
company which was the first and ever merger in the Nepali corporate history. Laxmi
Bank is a Category A Financial Institution and re-registered in 2006 under the Banks
and Financial Institutions Act of Nepal. The Banks shares are listed and actively traded
in the Nepal Stock Exchange (NEPSE).
The bank is primarily recognized for its stringent credit policies, conservative approach
to banking and pioneers in technological innovations in the banking services.
Vision statement
Provider of most integrated financial services
Key player and a thought leader in the retail financial services
A bank with the best asset book
Best IT capability
Preferred employer in the financial sector
Mission Statement
We are committed to excellence in delivery of the entire gamut of financial services in
order to achieve sound business growth and maximize stakeholder values by embracing
team spirit, progressive technology and good corporate governance.
Kumari Bank Limited
Kumari Bank Limited, came into existence as the fifteenth commercial bank of Nepal by
starting its banking operations from Chaitra 21, 2057 B.S (April 03, 2001) with an
objective of providing competitive and modern banking services in the Nepalese financial
market. The bank has paid up capital of Rs. 1,603,800,000 of which 70% is contributed
from promoters and remaining from public.
Vision Statement
Our vision is to be the preferred financial partner to our customers, a center of career
growth to our employees, and to maximize our shareholders value, while contributing to
our nations financial sector and to its economic welfare.
Mission Statement
Our mission is to deliver innovative products and services to our customers, use these
innovative products to achieve financial inclusion, and do so by exemplifying good
corporate governance, proactive risk management practices, and superior corporate social
responsibility.


Comparison of share values of the two banks as per their statistical calculation:
Himalayan Bank Limited Laxmi Bank Limited
Date High Low Close

High low Close
5/22/2014 806 791 800

452 445 452
5/21/2014 809 795 803

455 442 442
5/20/2014 810 795 805

459 449 459
5/19/2014 810 801 806

460 460 460
5/18/2014 812 802 807

460 460 460
5/15/2014 813 802 810

460 456 460
5/13/2014 814 804 810

461 459 459
5/12/2014 815 805 810

461 461 461
5/11/2014 815 805 810

461 455 461
5/8/2014 818 805 811

461 443 450
5/7/2014 820 808 812

462 450 459
5/6/2014 820 810 812

464 462 462
5/5/2014 820 810 814

465 460 460
5/4/2014 820 810 815

465 460 461
4/30/2014 820 810 815

465 458 460
4/29/2014 820 812 817

465 440 451
4/27/2014 820 813 817

470 466 470
4/23/2014 821 815 818

470 470 470
4/22/2014 821 815 820

472 462 462
4/21/2014 821 815 820

473 470 473
4/20/2014 824 816 820

474 455 474
4/17/2014 825 816 820

474 465 466
4/16/2014 825 816 820

474 469 470
4/15/2014 829 816 820

474 465 465
4/13/2014 830 818 822

474 461 461
4/10/2014 830 820 824

474 460 474
4/9/2014 830 820 825

475 460 460
4/7/2014 830 820 825

475 475 475
4/6/2014 830 820 829

475 475 475
4/3/2014 835 820 830

475 470 475
4/2/2014 835 825 830

476 473 476
4/1/2014 835 830 831

476 470 471
3/31/2014 836 830 835

477 450 477
3/27/2014 840 831 835

479 460 463
3/26/2014 850 836 845

479 471 472
3/25/2014 850 840 845

479 470 475
3/24/2014 850 845 846

480 477 477
3/23/2014 855 845 850

480 463 463
3/20/2014 860 846 850

481 470 470
3/19/2014 861 850 855

485 480 481
3/18/2014 861 850 856

489 476 480
3/17/2014 865 850 858

496 490 490
3/13/2014 870 850 860

498 479 481
3/12/2014 877 855 861

502 495 495
3/11/2014 880 855 865

505 491 505
3/10/2014 880 855 869

505 491 500
3/9/2014 884 860 877

505 490 505
3/6/2014 899 890 890

506 500 504
3/5/2014 900 890 900

510 498 508
3/4/2014 902 890 902

520 503 516
3/3/2014 905 890 905

523 504 512
2/26/2014 912 891 909

525 511 513
2/25/2014 935 897 910

526 505 525
2/24/2014 945 902 912

533 500 528
2/23/2014 945 905 929

538 506 506
2/20/2014 951 928 933

577 535 577
2/18/2014 979 930 944

580 560 560
2/17/2014 981 940 953

587 570 573
2/16/2014 984 942 960

591 565 585
2/13/2014 991 950 965

634 580 586
Total 51431 50503 50947

29447 28716 29061
Minimum 806 791 800

452 445 452
Maximum 991 950 965

634 580 586
Mean 857.183 841.71 849.116

490.783 478.6 484.3
Median 835 822.5 830

475.5 470 473.5
Mode 820 820 820

474 460 460
Mid Hinge 850 833.25 841.25

485 475.5 481
Mid Range 898.5 870.5 882.5

543 512.5 519
Quartile 1 820 811.5 816.5

465 460 461
Quartile 3 880 855 866

505 491 501







Comparison of five number summary data of the given two banks from their
high share value:
Himalayan Bank NIBL

1. Minimum value
2. First quartile
3. Median
4. Third quartile
5. Maximum value



Measures of central tendencyData from high share value of these banks

1. Mean
2. Median
3. Mode
4. Mid-range
5. Mid-hinge


Graphical representation of central tendency Data from high share value of
these banks:
806 835
820 858.75
845 898
889.5 941.5
991 1005
Himalayan Bank NIBL
806 835
820 858.75
845 898
889.5 941.5
991 1005
Himalayan Bank NIBL
862.51 901.76
845 898
820 900
898.5 920
854.75 900.125


For hypothesis testing:
From the above data,
Himalayan NIBL
n
1
= 60 n
2
= 60

= 862.5167 (high value)

= 901.767
S
1
= 51.1801 (high value) S
2
= 48.1584(high value)
We can test there is significant difference in average values of bank ok Kathmandu and standard
chartered bank by using = 0.05
Null Hypothesis (H
0
):
1
=
2
Alternative Hypothesis (H
1
):
1

2

Test statistic
S
1
and S
2
are given so we can use t- test

)

760
780
800
820
840
860
880
900
920
940
mean median mode mid-hinge midrange
himalayan
NIBL
For calculation pooled (combined) variance Sp
2
,

= [(60-1)51.18
2
+ (60-1) 48.1584
2
]/ (60+60-2)
= 2469.312
Now,

)

t = -39.2503/9.0725
t = - 4.3263
Here, t = |t| = 4.3263

Tabulated t= t n
1+
n
2
2 at /2
= t
60+60-2
at /2
= t
118, 0.025
= 1.96

DECISION
Calculated value (4.3263) > Tabulated value (1.96)
Therefore, we reject Null hypothesis.
CONCLUSION
There is significant difference between the share values of Himalayan Bank and Nepal
Investment Bank Limited (NIBL).


Appendix
Abbreviation
n = Total no of observation
n
1
= Total no of observation of HBL
n
2
= Total no of observation of NIBL
s = standard deviation
s
1
= standard deviation of
s
2
= standard deviation of NIBL
= sample mean

1 =
sample mean of HBL

2
= sample mean of NIBL
t = t-test
s
p
= pooled variance



THANK YOU