Based on the above ratios, comment on the performance of The Kuber Bank Ltd. in terms of profitability specifically indicating the reasons for the variation.

(i) Interest Expenses Ratio. The net profit in turn is influenced by the interest and non-interest income and expenses. Interest expenses ratio shows interest expenses to total income. In 2016-17 interest expenses ratio has marginally increased from 47.18% to 50.32% from the year 2015-16. (ii) Burden Ratio it is the ratio of non-interest income to non-interest expenses, in the year 2016-17 burden ratio reduced from the 78.21% to 64.02% from the previous year. This reduced is because of fall in other income. (iii) Efficiency Ratio on the other hand compares the non-interest expense to net total income. This ratio marginally increased from 48.32% to 49.04% in 2016-17 from the year 2015-16. (iv) Equity multiplier is an indicator of total assets to total equity. There is marginal increase in equity multiplier from 19.82 times to 21.02 times in the year 2016-17 from the previous year. (v) Net Interest Margin (NIM): The difference between the revenue generated by interest bearing assets and cost of borrowed fund gives the Net Interest Income (NII) of the bank. The NII when expressed as a percentage of the assets gives the NIM of the bank. NIM of the bank remained same in both the year. (vi) Assets utilization is an indicator of the efficiency usage of bank's assets. In 2016-17 asset utilization ratio has decrease from 8.28% to 7.98% this is mainly due to fall in other income of the bank. (vii) Return on Assets (ROA) assesses the profitability of the bank based on the assets. ROA of the bank has increased to 0.64% in 2016-17 from the 0.27% in 2015-16, but still this is considered as very low and indicates that banks deployment of the fund is not up to the mark. (viii) Return on Equity (ROE) shows the return earned by the shareholder of the bank. In the year 2016-17 ROE of the bank has increased to 13.47%, from 5.45% in 2015-16. This is due to significant rise in the net profit of the bank. (ix) Liability Mix Ratio decreased from 88.99% in FY'16 to 88.04% in FY'17 shows that share of deposits in total liabilities have marginally decreased. (x) CD Ratio : (Cost to Deposit Ratio). This ratio improved have from 60.24% in FY'16 to 66.10% in FY'17 which is good for the bank. Bank has tapped the lending opportunity available in the market which gives more margins to the bank in future.