1.

1        Background of Study

Financial performance is the detailed information about the bank. For this purpose we
can calculate different types of ratios. Financial performance analysis is an exceptionally
powerful tool for a variety of users of financial statements, each having different objectives in
learning about the financial circumstances of the entity. It can be helpful for managers,
creditors, stockholders, potential investors, and regulatory agencies. These individuals and
organizations use financial statements for different purposes and bring varying levels of
sophistication to understanding business activities. For example, investors range from private
individuals who know little about financial statements to large investment brokers and
institutional investors capable of using complex statistical analysis techniques. At what level of
user knowledge should financial statements be aimed? Condensing and reporting complex
business transactions at a level easily understood by nonprofessional investors is increasingly
difficult. Current reporting standards target users that have a reasonably informed knowledge
of business, though that level of sophistications difficult to define.

Bank is the organizations which control the financial activities works on it. This study is
prepared for financial performance analysis of GBBL.

1.2  Literature Survey 

The focus of this section is to discuss the theory of financial performance with the help of books
by well-known authors, scholars, articles & web sites. This chapter consist
conceptual/theoretical review.

1.3        Purpose of the Study

The main propose of this study is to analyze and interpret the financial position and
policy of the firm. The study focuses whether it is backward or forward in financial position and
fund efficiency. The prime objectives of the study are to evaluate the financial performance of
Gandaki Bikas Bank Limited. The purpose of study is mentioned below.
 · To examine the liquidity, leverage, capital adequacy turnover and profitability position
of GBBL,
· To examine the financial performance of GBBL in terms of liquidity position,
· To examine the financial performance of GBBL in term of leverage &profitability
analysis,
· To provide suitable and useful suggestion on findings of study.

1.4   Statement Problem

To complete this project work report, I have followed the following procedures:

· Get orientation class about the project work report from teachers.
· Decide project work title or topic.
· Decide the project work side.
· Get letter from the campus to investigate the project work.
· Survey the bank & get the information & data needed.
· Analysis the data & present that in table & chart.
· Summarize & give study result of the analyzed data.
· Give conclusion & recommendation.
· Consult to the teacher & re-write the report in the view of lectures & included some
special advices.

Using these steps, I’ve completed this project work report.

1.5   Limitation of Study

This study is simply conducted for the partial fulfillment of the requirement for the degree of
the BBS. And only the secondary data is used and analyzed which could not disclose the actual
result. And being the first endeavor, the report can comprise some mistakes which may cause
to misinterpretation of the result. Main limitation and difficulties in the process of preparation
of this report are as follows.

· This study is based on secondary data provided by GBBL, it is not sufficient to analysis.
 · The reliability of the study is depends upon the data provided by the GBBL.
· It contains the data of only 3 years (2070/070/072).
· This report analysis financial position in terms of liquidity, leverage & profitability
position.
· Analysis is based on the ratio and trend lies of the corresponding ratios only.
· In this study some figure has changed in rounding figure to reduce the error.
· The study is only for fulfilling the requirement for the degree of BBS, which can not
cover all the dimension of the all subjects matter and resource and time period is
limited.
1.6 Reseach Methodology
1.6.1 Method of Data Collection

Data can be collected from different sources and using different method. Among variety of
methodology for this report researcher prepared primary data collection and secondary data
collection are follows.

 I.  Primary Data Collection

Primary data are data collected or observed directly from first-hand experience or data that has
not been previously published. Also it can be define as a data collected by the investigator or
student himself/herself for a specific purpose. Various techniques can be applied for primary
data collection like sampling, using search instruments (questionnaire and observation), contact
method and other statistical tools.

II.   Secondary Data Collection

Secondary data is the data that have been already collected by and readily available from other
sources. Such data are cheaper and also may be available when primary data cannot be
obtained at all. It can be collect from published data by firms, organization, individuals etc such
as reports, record, pamphlets, websites, trades, newspaper article.

In this report the investigator has chosen both primary source & secondary source data
collection. Primary data have been collected through person observation, interviews with staff
etc. For secondary data, investigator has chosen three years profit & loss account & balance
sheet of the bank (2070/071, 2071/072, 2072/073). Also some useful web address has been
used to collect additional secondary Data.

a.  Tools & Techniques of Analysis

All the collected data are tabulated and presented in the figures. For this purpose, the
researcher applied both financial as well as mathematical/statistical tools. They are as follows:

·     Balance sheet

·         Profit and loss account

·         Table

·         Chart

1.5 Organization of Report:

The report consists of three chapters.

The first chapter is the introduction chapter that contains the background of the study,
information of Gandaki Bank Ltd. introduction, statement of problems, significance of the
study, objectives of the study, limitations of the study, methodology of research and finally
organization of the report.

The second chapter contains review of literature and research gap .

The third chapter is research methodology, research design, and sources data, financial and
statically tool .

The Four chapter contains data presentation and analysis and Major finding.

The Five chapter is regarding the summary, conclusion and recommendation regarding the
study.