ACKNOWLEDGEMENT
I am very obliged to Pokhara University for offering such an opportunity and
challenging intellectual task of project report writing as a part of course of Bachelor of
Business Administration In Banking And Insurance (BBA-BI).This help us to gain and
acquire practical knowledge in banking sector with practical knowledge. I have
concerned my report on "A study on Lending Performance of Siddhartha Bank Limited.
This project report has been prepared in accordance with the partial fulfillment for the
Bachelor of Business Administration in Banking and Insurance.
I would like to express my heartiest gratitude and thanks to all those who made possible
to prepare this report by providing information, guidance and valuable suggestions.
I would like to express warm thanks to [Link], principal of Siddhartha
International College for giving me the permission to write this report. I would also like
to thank Mr. L.B Adhakari (supervisor) for the valuable suggestion, guidance & help for
writing the report.
I express my gratitude to Mr. Sushil Nepal the regional manager of Siddhartha Bank Ltd.
for his proper guidance & good direction to make this report. Also I would like to thanks
all my friends who help me during this report writing period.
Ananda Gaire
(i)
TABLE OF CONTENT
PAGE NO.
Acknowledgement i
Table of Contents ii
List of Tables iv
List of Figure v
List of Abbreviation vi
Executive Summary vii
CHAPTER I: INTRODUCTION 1-8
1.1 Background of the Study 1
1.2 Introduction of Siddhartha Bank Limited 3
1.3 Statement of the Problem 4
1.4 Objective of the Study 5
1.5 Significance of the Study 5
1.6 Limitations of the Study 6
1.7 Review of the Literature 6
1.8 Research Methodology 8
1.8.1 Research D e s i g n 8
1.8.2 Data Collection Procedure 8
1.8.3 Data Presentation and Analysis Tools 8
CHAPTER II : DATA ANALYSIS AND PRESENTATION 9-19
2.1 Introduction 9
2.2 Financial Analysis 9
2.3 Lending Efficiency Ratios 13
2.4 Statistical Analysis 16
2.4.1 Measuring correlation between different variables 16
2.4.2 Trend Analysis 19
(ii)
CHAPTER: III SUMMERY AND CONCLUSION 23-25
3.1 Summary 23
3.2 Conclusion 24
3.3 Recommendation 25
BIBLOGRAPHY 27
APPENDIX 28-37
(iii
)
List of Tables
Table No. Titles Page No.
1. Loan and Advances to Current Assets Ratios 10
2. Loan and advances to total assets ratio 11
3. Loan and advances to total deposit ratio 12
4. Interest Income to total income ratio 14
5. Interest Income to Interest Expenses Ratio 15
6. Trend Analysis for Total Deposit 20
7. Trend Value and Actual Value of Loan and Advances 21
(iv
)
List of Figures
Titles Page No.
Figure No.
1. Loan and Advances to Current Assets Ratios 10
2. Loan and advances to total assets ratio 11
3. Loan and advances to total deposit ratio 13
4. Interest Income to total income ratio 14
5. Interest Income to Interest Expenses Ratio 15
6. Trend Analysis for Total Deposit 20
7. Trend Anal ysis Loan and Advances 22
(v)
LIST OF ABBREVIATIONS
SBL Siddhartha Bank Limited
FY Fiscal Year
NRB Nepal Rastra Bank
i.e. That is
BBA-BI Bachelor of Business Administration in Banking and Insurance
Rs. Rupees
r Coefficient of correlation
e.g. For Example
Ltd. Limited
No. Number
PU Pokhara University
SIC Siddhartha International College
(6)
EXECUTIVE SUMMARY
A bank is a financial institution and a financial intermediary that accepts deposits and
channels those deposits into lending activities, either or through capital markets. A bank
connects customers that have capita deficits to customers with capital surpluses. The
development of any country largely depends upon its financial as well as economic
development. The primary goal of any nation, including Nepal, is rapid economic
development to promote the welfare of the people and the national as well. Nepal, being
listed amongst the least development country, is trying to embark upon the path of
economic development by economic development by economic growth and developing
all sectors of the economic. The process of economic development depends upon various
factors; however, economists are now convinced that capital formation and its proper
utilization play a paramount role in rapid economic development. In every aspect, all the
deposit funds become non- productive unless they are financed or invested in the market.
For the sustainable development of economic status the financing should continue
regularly demands, which is possible by a sufficient deposit that allows the adequate flow
of money.
Siddhartha Bank Limited (SBL), established in 2002 under the NRB act 2012 B.S and
promoted by prominent personalities of Nepal, today stands as one of the consistently
growing banks in Nepal. While the promoters come from a wide range of sectors, they
possess immense business acumen and share their valuable experiences towards the
betterment of the Bank.
Siddhartha Bank has been able to gain significant trust of the customers and all other
stakeholders to become one of the most promising commercial banks in the country in
less than 10 years of its operation. The Bank is fully committed towards customer
satisfaction. The range and scope of modern banking products and services the Bank has
been providing is an example to its commitment towards customer satisfaction. It is this
commitment that has helped the Bank register quantum growth every year. And the Bank
is confident and hopeful that it will be able to retain this trust and move even further
towards its mission of becoming one of the leading banks of the industry.