Financial Management

Report on Comparison of Dividend status of

Nepalese Commercial banks

Submitted by: Submitted to:

Salim Lal Awale (17302) Ajay Shah

Ginish Jung Dahal (17307) Faculty of Financial management

Ruchi Pathak (17323)

MBA 2nd term

1st September, 2017

1. Nabil Bank

a. Market Share price

Share price
3000

2500

2000

1500
Share price
1000

500

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

b. Net income

Net Income
3E+09

2.5E+09

2E+09

1.5E+09
Net Income
1E+09

50000000

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
c. Dividend Paid

Dividend
2E+09
1.8E+09
1.6E+09
1.4E+09
1.2E+09
1E+09
Dividend
80000000
60000000
40000000
20000000
0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

d. Dividend payout ratio

Dividend payout ratio

100
90
80
70
60
50
Dividend payout ratio
40
30
20
10
0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
e. Relation between Market Share price and Dividend

Particulars Significance Value

Regression 0.663

Dependant Variable: Market share price

Independent variable: Dividend

Dividend and market Share price has significance level of 0.663 at 95 percent level of
confidence which is more than p value 0.05, so the null hypothesis is accepted. Hence, it
can be concluded that there is no statistical dependency between the dividend paid and
market share price in Nabil Bank.

f. Relation between Market Share price and Dividend payout ratio

Particular Significance value
Regression 0.854

Dependant Variable: Market share price

Independent variable: Dividend payout ratio

Dividend payout ratio and Share price has significance level of 0.480 at 95 percent level
of confidence which is more than p value 0.05, so the null hypothesis is accepted. Hence,
it can be concluded that there is no statistical dependency between the dividend payout
ratio and market share price in Nabil Bank.
2. Nepal Investment bank Limited

a. Market Share price

Share Price
1200

1000

800

600
Share Price
400

200

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

b. Net Income

Net Income
3E+09

2.5E+09

2E+09

1.5E+09
Net Income
1E+09

50000000

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
c. Dividend paid

Dividend
35000000

30000000

25000000

20000000

15000000 Dividend

10000000

50000000

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

d. Dividend Payout Ratio

Dividend payout Ratio

18

16

14

12

10

8 Dividend payout Ratio

6

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
e. Relation between Market Share price and Dividend

Particulars Significance value

Regression 0.714

Dependant Variable: Market Share price

Independent variable: Dividend

Dividend and Share price has significance level of 0.714 at 95 percent level of confidence
which is more than p value 0.05, so the null hypothesis is accepted. Hence, it can be
concluded that there is no statistical dependency between the dividends paid and market
share price in Nepal Investment bank Limited.

f. Relation between Market Share price and Dividend payout ratio

Particulars Significance value

Regression 0.854

Dependant Variable: Market Share price

Independent variable: Dividend payout ratio

Dividend payout ratio and Share price has significance level of 0.854 at 95 percent level
of confidence which is more than p value 0.05, so the null hypothesis is accepted. Hence,
it can be concluded that there is no statistical dependency between the dividend payout
ratio and market share price in Nepal Investment bank Limited.
3. Standard Chartered Bank

a. Market Share Price

Share Price
4,000

3,500

3,000

2,500

2,000
Share Price
1,500

1,000

500

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

b. Net Income

Net Income
1,600,000,000

1,400,000,000

1,200,000,000

1,000,000,000

800,000,000
Net Income
600,000,000

400,000,000

200,000,000

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
c. Dividend Paid

Dividend
900,000,000
800,000,000
700,000,000
600,000,000
500,000,000
400,000,000 Dividend Paid
300,000,000
200,000,000
100,000,000
0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

d. Dividend Payout Ratio

Dividend payout Ratio

80.0000

70.0000

60.0000

50.0000

40.0000
Dividend payout Ratio
30.0000

20.0000

10.0000

0.0000
2009/102010/112011/122012/132013/142014/152015/16
e. Relation between Market Share price and Dividend

Particulars Significance value

Regression 0.294

Dependant Variable: Market Share price

Independent variable: Dividend

Dividend and Share price has significance level of 0.294 at 95 percent level of confidence
which is more than p value 0.05, so the null hypothesis is accepted. Hence, it can be
concluded that there is no statistical dependency between the dividends paid and market
share price in Standard chartered Bank Nepal.

f. Relation between Market Share price and Dividend payout ratio

Particulars Significance value

Regression 0.320

Dependant Variable: Market Share price

Independent variable: Dividend payout ratio

Dividend payout ratio and Share price has significance level of 0.320 at 95 percent level
of confidence which is more than p value 0.05, so the null hypothesis is accepted. Hence,
it can be concluded that there is no statistical dependency between the dividend payout
ratio and market share price in Standard chartered Bank Nepal.
4. Nepal SBI Bank

a. Market Share Price

Share Price
2000
1800
1600
1400
1200
1000
Share Price
800
600
400
200
0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

b. Net Income

Net Income
1,400,000,000

1,200,000,000

1,000,000,000

800,000,000

600,000,000 Net Income

400,000,000

200,000,000

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
c. Dividend paid

Dividend
200,000,000
180,000,000
160,000,000
140,000,000
120,000,000
100,000,000
Dividend Paid
80,000,000
60,000,000
40,000,000
20,000,000
0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

d. Dividend payout ratio

Dividend payout Ratio

25.0000

20.0000

15.0000

Dividend payout Ratio

10.0000

5.0000

0.0000
2009/102010/112011/122012/132013/142014/152015/16
e. Relation between Market Share price and Dividend

Particulars Significance value

Regression 0.870

Dependant Variable: Market Share price

Independent variable: Dividend

Dividend and Share price has significance level of 0.870 at 95 percent level of confidence
which is more than p value 0.05, so the null hypothesis is accepted. Hence, it can be
concluded that there is no statistical dependency between the dividends paid and market
share price in Nepal SBI Bank Limited.

f. Relation between Market Share price and Dividend payout ratio

Particulars Significance value

Regression 0.150

Dependant Variable: Market Share price

Independent variable: Dividend payout ratio

Dividend payout ratio and Share price has significance level of 0.150 at 95 percent level
of confidence which is more than p value 0.05, so the null hypothesis is accepted. Hence,
it can be concluded that there is no statistical dependency between the dividend payout
ratio and market share price in Nepal SBI Bank Limited.
5. Himalayan Bank Limited
a. Market share price

Share price
1600

1400

1200

1000

800
Market share price
600

400

200

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

b. Net Income

Net Income
2,500,000,000

2,000,000,000

1,500,000,000

Net Income
1,000,000,000

500,000,000

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
c. Dividend paid

Dividend
400,000,000

350,000,000

300,000,000

250,000,000

200,000,000
Dividend paid
150,000,000

100,000,000

50,000,000

0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

d. Dividend payout ratio

Dividend payout ratio

0.40

0.35

0.30

0.25

0.20
Dividend payout ratio
0.15

0.10

0.05

0.00
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
e. Relation between Market Share price and Dividend

Particulars Significance Value

Regression 0.002

Dependent Variable: Market share price

Independent variable: Dividend

Dividend and Market Share price has significance level of 0.002 at 95 percent level of
confidence which is less than p value of 0.05, so the null hypothesis is rejected. Hence,
there is a statistical dependency between the dividends paid and market share price in
Himalayan Bank Limited.

f. Relation between Market Share price and Dividend payout ratio

Particular Significance value
Regression 0.005

Dependent Variable: Market share price

Independent variable: Dividend payout ratio

There is a significance level of 0.005 among the Dividend payout ratio and Market Share
price at 95 percent level of confidence which is less than p value 0.05, so the null
hypothesis is rejected. Hence, it can be concluded that there is a statistical dependency
between the dividend payout ratio and Market share price in Himalayan Bank Limited.