Asmita Proposal
Asmita Proposal
BANK LIMITED
By
Asmita Regmi
TU Regd. No.: 7-2-848-18-2020
Dang Valley College
Submitted to
Dang,Ghorhi
April,2025
TABLE OF CONTENTS
Title Page i
Table of Contents ii
CHAPTER I: INTRODUCTION
1.1 Background of the Study ………………………………………………...1
1.2 Profile of the organization …………………………………………..…..2
1.3 Statement of Problems ………………………………………………..…3
1.4 Objectives of the Study ………………………………………………....3
1.5 Rational of the study……….…………………………...………...…….3
1.6 Review of literature ……………………………………………………..5
1.7Research Methodology …………………………………………………..5
1.8 Limitation of the study …………………………………………………..6
1.9 Ratio Analysis…………………………………………….……………..6
Reference
II
CHAPTER 1
INTRODUCTION
1
The modern banking history starts from the establishment of Nepal Bank Limited in
1934 A.D which is regarded as a milestone in modern banking history. It was
inaugurated by king Tribhuvan on 30 kartik 1994 B.S. Nepal Bank was established as
a semi commercial bank with authorized capital of 10 million rupees and paid up
capital of Rs 892 thousand. Until mid 1940s only metallic coins were used as medium
of exchange. So, the then His Majesty’s Government felt the need of separate
institution to issue national currencies and promote financial activites in the country.
Nepal’s central bank ‘Nepal Rastra Bank’ was established in 2013 B.S. under Nepal
Rastra Bank Act 2012 to perform the functions of central bank. Subsequently,
Rastriya Banijaya Bank was established as another state owned commercial bank. For
public sector Nabil Bank was established with the joint venture of Habib Bank of
Pakistan. This paved the way for establishment of commercial banks in the nation.
Specially, with the reinstitution of democracy in 2047 B.S. the new flow started in
Nepalese commercial periphery and wide range of commercial banks was established.
The general meaning of bank refers to the commercial banks. A commercial bank is a
financial institution which collects saving from many persons and institutions and
provides credit or loan facility to different industrial and commercial business.
Commercial banking business consists of changing cash into bank deposit and bank
deposit into cash, transferring bank institution to other, giving bank deposit in
exchange for cheque, bills of exchange, government securities etc.
2
Standard Chartered Bank Limited has been providing wide - range of modern banking
services through located in various urban and semi urban part of the country With 15
points of representation, 23 ATMs across the country and with more than 450 local
staff, Standard Chartered Bank Nepal Ltd. is in a position to serve its clients and
customers through an extensive domestic network. In addition, the global network of
Standard Chartered Group gives the Bank a unique opportunity to provide truly
international banking services in Nepal. As one of the world's most international
banks, Standard Chartered employs almost 87,000 people, representing over 115
nationalities, worldwide. This diversity lies at the heart of the Bank's values and
supports the Bank's growth as the world increasingly becomes one market.
1.3 Statement of problems
The banking sector is a critical component of the global economy, and the
performance of individual banks directly impacts their stakeholders, including
investors, customers, employees, and regulators. Standard Chartered Bank Limited,
being one of the leading multinational banks, plays a significant role in the global
financial system. Despite its established presence and reputation, the bank faces
challenges in maintaining optimal financial performance amid the increasing
competition in the banking industry, evolving economic conditions, regulatory
changes, and rapid technological advancements.
While Standard Chartered has demonstrated growth and stability in various markets,
there is a need to evaluate its financial health and performance in a comprehensive
manner. The study aims to address the following key problems:
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1.4 Objectives of the Study
The report is prepared to partially fulfill the requirements for the degree of Bachelor
of Business Studies, TU.
To provide an overview of Standard Chartered Bank
To determine the profitability, cost ratio, credit performance etc.
To identify the financial performance of Standard Chartered Bank.
To determine the market position of Standard Chartered Bank.
To evaluate leverage and liquidity position of Standard Chartered Bank.
To identify the competitive market or environment of Standard Chartered Bank.
1.5Rational of the Study
The rationale for conducting a study on the ratio analysis of Standard Chartered Bank
Limited is to evaluate the bank's financial performance, stability, and efficiency. By
examining key financial ratios, such as profitability, liquidity, and solvency ratios, the
study provides valuable insights into the bank’s operational strengths and weaknesses.
This analysis is essential for investors to assess the bank’s potential for returns and
risk, while management can use the findings to identify areas of improvement for
better financial decision-making. Additionally, comparing Standard Chartered’s
performance with industry benchmarks and competitors helps determine its relative
position in the banking sector. Furthermore, the study aids in understanding how well
the bank manages its assets, capital structure, and risks, offering a comprehensive
view of its financial health. Ultimately, the goal of this study is to provide actionable
1.6 Review of literature
insights that can guide strategic decisions, ensuring the bank's sustained growth and
profitability.Financial ratio analysis is a critical tool used to assess the financial health
of a company, particularly in the banking sector. According to
Gitman (2009) suggests that profitability, liquidity, and solvency ratios are
fundamental to understanding a bank's ability to generate returns, meet short-term
obligations, and maintain long-term financial stability. In banking, liquidity ratios,
such as the current ratio and quick ratio, are crucial for understanding a bank’s ability
to manage its day-to-day operations without liquidity crises
Mishkin (2001) notes that consistent profitability is vital for banks to remain
competitive and continue expanding their customer base.
4
Saunders & Allen (2002), liquidity management is essential for banks to avoid
insolvency and preserve customer trust. Solvency ratios, such as the debt-to-equity
ratio, are used to measure a bank’s ability to meet its long-term obligations. A high
debt-to-equity ratio may indicate financial leverage, which can increase risk, but also
enhance returns in favorable conditions.
Brealey & Myers (2003)argue that banks must optimize their asset management
strategies to ensure that every unit of investment generates maximum return.
Additionally, the cost-to-income ratio is widely used to evaluate operational
efficiency, with a lower ratio indicating more efficient management (Jha & Sharma,
2014).
Vishwanath (2003) highlights that ratio analysis is key to identifying a bank’s risk
exposure, such as credit risk, market risk, and operational risk. By focusing on risk-
adjusted performance ratios, banks can determine their vulnerability to economic
downturns, regulatory changes, and market fluctuations.
1.7.1Research Design
1.7.2Source of Data
The source of data for this study will primarily consist of secondary data, which
includes various published reports and databases. Key sources will be the annual
reports of Standard Chartered Bank Limited, which provide comprehensive financial
statements and detailed performance metrics. Additional data will be gathered from
financial databases such as Bloomberg, Reuters, and Thomson Reuters, which offer
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up-to-date financial information and banking sector analysis. Industry reports from
organizations like the Reserve Bank, World Bank, and IMF will provide insights into
global banking trends and help benchmark the bank's performance against broader
industry standards. Finally, research papers and articles from academic journals and
financial publications will be used to further contextualize the findings and compare
Standard Chartered's performance with other banks in the sector.
6
Reference
Brealey, R. A., & Myers, S. C. (2003). Principles of Corporate Finance (7th ed.).
McGraw-Hill.
Hempel, G. H., & Simonson, D. G. (1999). Bank Management: Text and Cases. John
Wiley & Sons.
Jha, S., & Sharma, S. (2014). Cost-to-Income Ratio and Efficiency in Indian Banks.
International Journal of Economics and Financial Issues, 4(1), 165-173.
Mishkin, F. S. (2001). The Economics of Money, Banking, and Financial Markets (7th
ed.). Pearson Education.
Puri, M., & Sharma, S. (2009). Standard Chartered Bank's Global Strategy. Journal
of Banking and Finance, 34(5), 1127-1139.
Saunders, A., & Allen, L. (2002). Credit Risk Management in and out of the Financial
Crisis: New Approaches to Value at Risk and Other Paradigms. John Wiley & Sons.
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