Ratio Analysis

Of
Nepal Investment Bank Limited
A Project Report

By
Anuradha Kumari Tharu
Bachelor of Business Studies
Exam Roll No: 708570015
TU Registration No: 7-2-857-76-2017
Mainapokhar Sharada Multiple Campus, Bardiya

Submitted to
Tribhuvan University
in partial fulfillment of the requirements for the degree of
BACHELOR OF BUSINESS STUDIES
2078
 (Affiliated to Tribhuvn University)
MAINAPOKHAR SHARADA MULTIPAL CAMPUS
Badhaiyatal-6, Mainapokhar, Bardiya
Date:

DECLARATION

I hereby declare that the project work entitled Ratio Analysis of Nepal Investment
Bank Limited submitted to the Faculty of Management, Tribhuvan University,
Kathmandu is an original piece of work under the supervision of Mr. Pawan Kumar
Chaudhary, faculty member, MAINAPOKHAR SHARADA MULTIPLE CAMPUS ,
Bardiya, and is submitted in partial  fulfillment of the requirements for 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. 

…………………….……… 
Anuradha Kumari Tharu
Date:

II
 (Affiliated to Tribhuvn University)
MAINAPOKHAR SHARADA MULTIPAL CAMPUS
Badhaiyatal-6, Mainapokhar, Bardiya
Date:

SUPERVISOR’S RECOMMENDATION

The project work report entitled Ratio Analysis of Nepal Investment Bank Limited
submitted by Anuradha Kumari Tharu of MAINAPOKHAR SHARADA MULTIPLE
CAMPUS, Bardiya, is prepared under my supervision as per the procedure and
format requirements laid by the Faculty of Management, Tribhuvan University, as
partial fulfillment of the requirements for the degree of BACHELOR OF BUSINESS
STUDIES (BBS). I, therefore, recommend the project work report for evaluation. 

…………………….……….. 
Mr. Pawan Kumar Chaudhary
Date:

III
 (Affiliated to Tribhuvn University)
MAINAPOKHAR SHARADA MULTIPAL CAMPUS
Badhaiyatal-6, Mainapokhar, Bardiya
Date:

ENDORSEMENT

We hereby endorse the project work report entitled Ratio Analysis of Nepal
Investment Bank Limited submitted by Anuradha Kumari Tharu of MAINAPOKHAR
SHARADA MULTIPLE CAMPUS, Bardiya, in partial fulfillment of the requirements
for the degree of the BACHELOR OF BUSINESS STUDIES (BBS) for external
evaluation.

…………………….…. ………………………….

Mr. Ram Sewak Tharu Mr. Pushpa Bahadur Rawal 

Management Research Committee Campus Chief
Date: Date:

IV
 ACKNOWLEDGEMENT

I would like to extend my gratitude to Tribhuvan University for involving this skill
developing practical exercise in BANKING & INSURANCE (MGT 324) which
provides us first hand knowledge about the world of work and also helps us to apply
the conceptual knowledge acquired in classroom to real life. It is my great pleasure
to present this fieldwork report for the partial fulfillment of the requirements for the
Bachelors Degree of Business Studies (BBS). 

I would take the pleasure of offering thanks to the staffs of Nepal Investment Bank
limited, Nepalgunj Branch for providing me the required data and information. I am
indebted to all those authors and scholars whose works have directly or indirectly
supported me in its preparation. I sincerely acknowledge to all the teachers and
especially to Mr. Krishna Raj Joshi (Branch Manager for NIBL) without whom this
report would not have been completed. I would like to express my sincere gratitude
to the respected teachers Mr. Pushpa Bahadur Rawal (Campus Chief) & Mr.
Pawan Kumar Chaudhary (Fieldwork report supervisor). 

I have been able to prepare this report only by receiving significant help in different
ways from my family and friends. I would like to express thanks to all of them for their
guidance, inspiration and invaluable assistance. I would be extremely delighted to
appreciate the efforts of Mr. Krishant Chaudhary (Krishnasaar Computer Institute)
for computer setting and printing of the report. 

Anuradha Kumari Tharu

Mainapokhar Sharada Multiple Campus
Mainapokhar, Bardiya

V
 ABBREVIATIONS

A/c Account 
BBS Bachelors of Business Studies 
BOD Board of Directors
BS Bikram Sambat
EBIT Earning Before Interest and Tax 
Eg Exempligratia (for example)
etc etcetera (and so on)
FOM Faculty of Management
FY Fiscal Year 
HDI Human Development Index
i.e. id est (that is)
Ltd Limited 
No Number 
P/L Profit and Loss
ROA Return on Assets
NPR Nepalese Rupees
NIBL Nepal Investment Bank Ltd.
TU Tribhuvan University
NRB Nepal Rastra Bank
% Percentage
Fig Figure  
Pvt Private  
Dia. Diagram

IX
 LIST OF FIGURES

 Figure  Page
Fig.1 Shareholding Pattern of NIBL  21
Fig.2 Earning Per Share 22
Fig.3 Return on Asset 23
Fig.4 Price Earning Ratio 24

LIST OF DIAGRAMS
 Diagram Page
Dia.1 Barograph of Valuation Highlights 25

VIII
 TABLE OF CONTENTS
Title Page
Declaration II
Supervisor’s Recommendation III
Endorsement IV
Acknowledgements V
Table of Contents VI
List of Tables VII
List of Figures and Diagram VIII
Abbreviations IX
1. Introduction 
1.1 Meaning of Bank 1
1.2 History of Banking 1
1.3 Banking in Nepal 2
1.4 Introduction to NIBL 3
1.5 Vision 4
1.6 Mission 4
1.7 Statement of Problem 5
1.8 Objectives of Field Report 5
1.9 Literatures Review 6
1.10 Methodology of Fieldwork 7
1.11 Significance of the Study 8
1.12 Limitation of the Fieldwork 9
1.13 Organization of the study 9
1.14 Techniques of Analysis  10
2. Presentation and Analysis of data
2.1 Presentation and analysis of data 12
2.1.1 Earning Per Share 12
2.1.2 Return on Asset 13
2.1.3 Price Earning Ratio 13
2.1.4 Ratio of Net Proft to Gross Income 14
2.1.5 Exchange Gain to Total Income Ratio 14
2.1.6 Net Profit to Loans & Advances Ratio 15
2.1.7 Cash & Bank balance to Current Deposit Ratio 15
2.1.8 Cash & Bank balance to Total Deposit Ratio 15
2.1.9 Saving Deposit to Total Deposit Ratio 16
2.1.10 Fixed Deposit to Total Deposit Ratio 16
2.1.11 Survey Result 17
3. SUMMARY AND CONCLUSION
Summary 18
Conclusion 19
Recommendations 20
4. Appendices  21
Bibliography   26
VI
 LIST OF TABLES

Page
Table 1: Earning Per Share 12
Table 2: Return on Asset 13
Table 3: Price Earning Ratio 13
Table 4: Ratio of Net Profit to Gross Income 14
Table 5: Exchange Gain to Total Income Ratio 14
Table 6: Net Profit to Loan and Advances Ratio 15
Table 7: Cash and Bank balance to current deposit Ratio 15
Table 8: Cash reserve Ratio 15
Table 9: Saving Deposit to Total Deposit Ratio 16
Total 10: Fixed Deposit to Total Deposit Ratio 16

VII