PROFITABILITY ANALYSIS OF KUMARI BANK LIMITED
A Project Work Report
BY:
Sunita Dangol
T.U. Reg. no: 7-2-0926-0055-2016
Canvas International college
SUBMITTED TO:
The Faculty of Management
Tribhuvan University
Kathmandu
In Partial Fulfillment of the Requirement for the Degree of
Bachelor of Business Studies (BBS)
Basundhara, Kathmandu
December, 2020
i
DECLARATION
I hereby declare that the project work entitled "PROFITABILITY ANALYSIS OF
KUMARI BANK LIMITED”submitted to the Faculty Of Management, Tribhuvan
University, Kathmandu is an original piece of work under the supervision of
Mr.Bhupendra Pandey, faculty member, Canvas International College, Basundhara,
Kathmandu, and is submitted in partial fulfilment of the requirements for the award of the
degree of bachelor of Business Studies (BBS). This project work report has not been
submitted to any other university or institution for the award of any degree or diploma.
_____________
Sunita Dangol
Date: December, 2020
ii
SUPERVISOR’S RECOMMENDATION
The project work report entitled “ANALYSIS OF KUMARI BANK LIMITED”
submitted by SUNITA DANGOL of CANVAS INTERNATIONAL COLLEGE,
BASUNDHARA, KATHMANDU, is prepared under my supervision as per the
procedure and format requirement laid by the Faculty of Management, Tribhuvan
University, as partial fulfillment of the requirement for the award of the Degree of
Bachelor of Business Studies (BBS). I, therefore recommend the project work report for
evaluation.
______________
Bhupendra Pandey
Sarswati Multiple Campus
Date:
iii
ENDORSEMENT
We hereby endorse the project work entitled “ PROFITABILLITY ANALYSIS OF
KUMARI BANK LIMITED” submitted by SUNITA DANGOL of CANVAS
INTERNATIONAL COLLEGE, BASUNDHARA, KATHMANDU, in partial
fulfillment for requirements for award of the Bachelor of Business Studies (BBS) for
external evaluation.
_______________ ____________________
Bhupendra Pandey Shyam Sundar Shrestha
Management Research Lumbini Academic College
Date: Date:
ABSTRACT
iv
This study attempts primarily to measure the deposit analysis of Kumari Bank Limited
which is one of the largest and prominent private commercial banks in Nepal. To
complete any task I have to use various materials and take online source. Analysis the
ratio here used financial ratio analysis (FRA) method which helps to draw an overview
about profitability analysis of the Kumari Bank Limited. To test the hypothesis the study
has been worked on Student t-test by using SPSS. These analyses helps to see the current
data’s of this bank compare past performance. The deposits of banks are dependent more
on the management’s ability in formulating strategic plans and the efficient
implementation of its strategies. The study findings can be helpful for management of
Kumari Bank Ltd. to improve their financial performance and formulate policies that will
improve their performance. The study also identify specific areas for bank to work on
which can ensure sustainable growth for these banks.
ACKNOWLEDGEMENT
v
Our University education is teacher centered and one way i.e. accumulated information if
transferred to students from teachers, students never initiate to find new things and solve
practical problems. That’s why they were unable to utilize their degree in real life.
But the recent change in the Bachelor Degree course tries to initiate in this field. So, the
students have to prepare report on any subjects or field report for 50 marks as a practical
fulfillment of Bachelor Degree. This step helps to acquire some practical knowledge.
During the preparation of report data have to analyzed, interpreted by own self. That’s why,
this report writing become very difficult for me. But I have taken these problems in natural
way because it will probably help me in my higher education.
I also wish to express my thanks to Mr Bigyan Rana of Kumari Bank Limited for his
support and full co-operation in providing information that was required for the study. His
valuable support for the preparation of proposal to thesis is really praise worthy things. I am
extremely indebted by his efforts despite of his busy schedule.
Similarly, I would like to thank my Supervisor Mr. Sashi Kant Sharma who too oriented
the classes and it became much easy for me to prepare the report.
Finally, I would like to disclose my sincere gratitude to my family and friends for their
co-operation, support and encouragement for the completion of this work.
Sunita Dangol
vi
TABLE OF CONTENTS
Title page i
Declaration ii
Supervisor’s Recommendation iii
Endorsement iv
Abstract v
Acknowledgement vi
Table of Contents vii
List of Tables ix
List of Figures x
Abbreviations xi
CHAPTER-I: INTRODUCTION 1
1.1 Background of the study 1
1.2 Problem Statement 2
1.3 Objectives 3
vii
1.4 Rationale 3
1. 5 Report Structure 3
CHAPTER-II: REVIEW OF THE LITERATURE
5
2.1 Conceptual Review 5
2.2 Review of Previous Work 6
2.3 Research Gap 9
CHAPTER-III: Research Method and Data Analysis 10
3.1 Type of Research 10
3.2 Population and sample 10
3.3 Types of Data 11
3. 4 Data Collection Procedure 11
3.5 Instruments 11
3.6 Techniques of analysis 12
3.7 Limitation 12
CHAPTER-IV: RESULTS AND FINDINGS OF THE STUDY 13
4.1 Data Presentation in Tables and Figures and Their Analysis 13
4.2 Major Findings 22
CHAPTER – V : DISCUSSION AND CONCLUSION 24
5.1 Discussions 24
5 .2 Conclusion 25
5.3 Implications 26
REFERENCES 28
viii
List of Tables
S.N Title of Table Page
Table 1 Total deposit of KBL from F/Y 2068-069 to 2072-073 13
Table 2 Compositions of Deposits 15
Table 3 Loan Discount & Overdraft of KBL 16
Table 4 Composition of CD ratio of KBL in last five FY 17
Table 5 Position of CRR & CD ratio of KBL in last five FY 19
Table 6 Total Borrowing Position of KBL 21
ix
List of Figures
S.N Title of Figures
Figure 1 Total Profitability of KBL in last Five FY 14
Figure 2 Loan, Discount & Overdraft of KBL in last five FY 16
Figure 3 Loan Advance comparing Total Deposit 18
Figure 4 CRR and CD ratio of KBL 20
Figure 5 Total borrowing position of KBL 22
x
ABBREVIATIONS
B. S. BikramSambat
xi
CD Ratio Credit to Deposit Ratio
CRR Cash Reserve Ratio
FY Fiscal Year
KBL Kumari Bank Limited
LDO Loan Discount & Overdraft
Ltd. Limited
NGO Non- Government Organization
NRB Nepal Rastra Bank
SLF Standing Liquidity Facility
T.U. Tribhuvan University
LC Letter of Credit
TC Traveler’sCheque
xii
