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Financial Performance of Nepal Bank Ltd

The document provides an overview of Nepal Bank Limited, highlighting its role in the banking sector of Nepal, including its functions, objectives, and significance in economic development. It outlines the research questions and objectives aimed at evaluating the bank's financial performance, including its profits, loans, deposits, and liquidity. The study methodology is based on secondary data from the bank's annual reports, with a focus on the last five fiscal years.

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Hetauda Ko Laure Keto
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44 views5 pages

Financial Performance of Nepal Bank Ltd

The document provides an overview of Nepal Bank Limited, highlighting its role in the banking sector of Nepal, including its functions, objectives, and significance in economic development. It outlines the research questions and objectives aimed at evaluating the bank's financial performance, including its profits, loans, deposits, and liquidity. The study methodology is based on secondary data from the bank's annual reports, with a focus on the last five fiscal years.

Uploaded by

Hetauda Ko Laure Keto
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1.

1 Meaning And Nature Of The Study

Bank is an institution which deals with money and credit. It accepts deposits from the public and
mobilizes fund to productive sector. It also provides remittance facility to transfer money from
one place to another.

The term Bank is oriented from the French word "banque' and the Italian word "Banco" which
means a bench for keeping, lending and exchanging of money or coins in the market place by
money lender and money exchanger. Bank is a business establishment that safeguards people's
money uses it to make loan and investments, People keep their money in banks rather than at
home for several reasons. Money is safer in the bank than at home.

Generally bank accepts deposit from business institutions and individuals which is mobilized
into productive sectors mainly business and consumers lending. Bank is therefore known as a
dealer of money. At present context, Bank is not only confined to accepting deposits and
disbursing loan. In addition to this a bank may be engaged currency, joint venture, underwriting ,
bank guarantee, discounting bills etc. In short the term ‘Modem Bank‘ refers to an institution
having the following features :

1. It deals with money it accepts deposit and advance loans.

2. It also deals with credit ; it has the ability to create credit by expanding its liabilities.

3. It is commercial institution ; it aims at earning profit.

1.2 Profile Event And Activities Of Nepal Bank

Nepal Bank Limited is one of the most popular commercial in Nepal. Nepal Bank Limited is
first bank of Nepal under the segment of Commercial Bank Act. Nepal Bank Ltd has been
established with the objectives of extending professional banking services to various section of
society in the kingdom of Nepal and there are contribute in the economic in the economic
development of the country.
Nepal Bank Ltd has been established with the objectives of extending, professional banking
services to various section of society in the Kingdom of Nepal and there are contribute in
economic development of the country. PNB is providing the top management service to the
under a technical services agreement signed between the two institutions. Nepal Bank has the
advantage of banking expertise and financial strength of the Joint venture.

1.3 Statement of the Research Question

This study attempts to answer the following research question

 What is the position of NEPAL BANK Ltd profits, loan and deposits over the different
period?

 How is the relationship between loan and deposits?

 How is the liquidity position of BE Ltd?

 What is the NEPAL BANK Ltd’s turnover different period?

1.4 Objectives of the Study

The basic objective of this study is to examine and evaluate the financial performance of “Nepal
Bank Limited”. To achieve these prime objectives, the followings objectives are also considered
in this study.

 To examine the financial statement of the bank and analyze them to see the financial
soundness of the bank.

 To observe the return over the equity.

 To highlight the relationship between the loan and deposit.

 To recommend and suggest the bank for their performance.


1.5 Significance of the study

This case study is important for the following reasons :

 To increase the knowledge of student in banking field.

 To practice what we study theoretically.

 This project report is also helpful to general readers who want to know about the bank.

 To provide information to customers of the bank.

 This project report may help in many was as some suitable suggestion has been provided
here.

1.5 Research Methodology

The research methodology is the process of coming to the solution of the problem through
planned and systematic dealing with the collected analysis and interpretation of the facts and
figures. As this field study is entirely related with the operation performance of NEPAL BANK
Ltd, so only the needed and useful research methodology has been used, for the purpose of
achieving the objectives, the below mentioned methodology purposed to follow. It includes
research design nature of data, data gathering procedure, presentation and analysis technique..

Research Design:-

The analysis of this study is based on certain research design. To accomplish any type of
research and to fulfill the objectives of the study, a well-set research design is necessary. This
study is followed on analytical as well as exploratory research design.

For the analytical purpose, the annual report published by the bank and other data has been
collected from different sources, published on different years. Period cover only five fiscal years.

Sources of Data:-

This case study is primarily based on secondary data that were provided by the NEPAL BANK
Ltd. It include mostly the prospectus of the company and audited annual report that contain
balance sheet and profit and loss a/c. The other additional information has been collected from
various sources.

1.7 Limitation of the Study

This case study has the following limitations :

 Only the NEPAL BANK is taken in study.

 The study is confined to evaluate financial performance NEPAL BANK Ltd.

 The truth of research result is based upon the available data form the bank.

 The study covers fortnightly period only.

 Past five years trends is taken in study.


FINANCIAL PERFORMANCE OF NEPAL BANK LIMITED IN
HETAUDA
A Proposal

Submitted By :
Pratima Muktan
T.U Registration No : 7-2-242-426-2019
4th year Exam Roll No:
( Finance Group)
Makawanpur Multiple Campus

Submitted To :
The Faculty of Management
Tribhuvan University
Kathmandu

In Partial Fulfillment of Requirement of the degree of


BACHELOR OF BUSINESS STUDIES (B.B.S)
Hetauda, Makawanpur
Dec, 2023

Common questions

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The study is limited to Nepal Bank Ltd., focusing on its financial performance over a fortnightly period for the past five years. The reliance on available data may limit generalizability, and the short-term nature of the study may not capture long-term trends. These limitations might impact the comprehensiveness and applicability of the findings beyond the immediate context of the bank .

Clients opt to keep their money in banks due to enhanced security, convenience, and the potential to earn interest. Banks capitalize on this preference by using deposits to fund loans and investments, which contributes to profits and economic stimulation, exemplifying their role as financial intermediaries in ensuring capital efficiency in the economy .

Nepal Bank Limited contributes to the economic development of Nepal by extending professional banking services across various sectors of society. By leveraging joint ventures and technical expertise, it enhances financial inclusion and supports economic activities, thus playing a critical role in the financial empowerment and stability of the region .

Recommendations for improving Nepal Bank Limited's performance include enhancing financial analysis and management practices, optimizing the relationship between loans and deposits for better liquidity management, and adopting innovations in service delivery to increase customer satisfaction and market competitiveness .

Modern banks have expanded their roles beyond traditional functions of accepting deposits and disbursing loans. They engage in currency trading, joint ventures, underwriting, bank guarantees, and bill discounting. This expansion reveals banks as multifaceted institutions involved in various financial transactions to support both commercial activities and the economic development of societies .

The relationship between loans and deposits is crucial for Nepal Bank Limited's operations as it impacts liquidity, profit margins, and financial stability. Effective management of this relationship allows the bank to leverage its deposit base for income-generating loan activities, enhancing both financial performance and service delivery to clients .

The ability to create credit is significant in modern banking as it enables banks to expand their liabilities beyond immediate deposits, facilitating greater economic activity through increased lending. It serves as a critical function in financial intermediation, allowing banks to support business and consumer needs, stimulate economic growth, and generate profits .

The key focus areas for evaluating Nepal Bank Limited's financial performance include analyzing financial statements to assess financial soundness, observing the return on equity, analyzing the relationship between loans and deposits, and providing recommendations based on performance evaluations. These areas are critical in understanding the overall financial health and efficiency of the bank’s operations .

Students and general readers can enhance their knowledge of banking operations, financial analysis, and the practical application of theoretical concepts through the Nepal Bank Limited case study. It offers a realistic example of banking in action, including financial evaluation and strategic decision-making, which deepens understanding of financial and economic principles .

The research methodology ensures the validity of the evaluation by employing analytical and exploratory research design, utilizing secondary data from audited annual reports, and limiting the scope to a focused five-year period. This systematic approach, including data gathering from reliable sources, ensures comprehensive analysis and accurate portrayal of financial performance .

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