CHAPTER I

INTRODUCTION

1.1 Background of the Study

Commercial Banks are those Banks who pool together the saving of the community and
arrange for their productive due. They supply the financial needs of modern business by
various means. They accept deposit from the public on the condition that they are
repayable on demand or on short notice. Commercial banks are restricted to invest their
funds in corporate securities. Their business is confined to financing the short term needs
of trade and industry such as working capital, financing. They can’t finance in fixed
assets. They grant loans in the form of cash credit and overdrafts. Apart from financing,
they also render services like collection of bills and cheques, safe keeping of valuables
financing advising etc to their customers (Catorelli, 2001).

The purpose of credit in banks is to earn interest and make profit. It follows that
principles of goods lending shall be concerned with ensuring, so far as possible that the
borrower will be able to make scheduled payments with interest in full and within the
required time period otherwise, the profit from an interest earned is reduced or even
wiped out by the bad debt when the customer eventually defaults.

A loan, on the other hand, specifically refers to a sum of money that is borrowed from a
lender with the agreement that it will be repaid, typically with interest, over a defined
period. Loans are a type of credit, representing a specific financial arrangement where a
lump sum is provided to the borrower, and regular payments are made over the loan term
until the total amount is repaid.

Credit is a broader concept encompassing the ability to borrow, while a loan is a specific
form of credit involving the borrowing of a fixed amount of money. Both credit and loans
play essential roles in financial transactions, providing individuals and businesses with
the means to access capital for various purposes Brealey, Myers, & Allen, (2017).
 2

1.2 Profile of the Organization

Rastriya Banijya Bank Limited

Rastriya Banijya Bank is fully government owned, and the largest commercial bank in
Nepal. RBB was established on January 23, 1966 (2022 Magh 10) under the RBB Act.
RBB provides various banking services to a wide range of customers including banks,
insurance companies, industrial trading house, ariline, hotels and many other sectors.
RBB has Nepal’s most extensive banking network with 293 branches.

RBB is one of the pioneer banks in the country, with a history of nearly a half century.
Rastriya Banijya Bank Limited (RBBL) has a history of serving its customers far and
wide across the nation for more than half a century. The bank then fully owned by
Government of Nepal, was established on 10 Magh 2022 (23 January 1966) under the
special statue “Rastriya Banijya Bank Act, 2021” and had operated under “Commercial
Bank Act, 2031” until it was re-registered as public limited company on 6 Baishakh 2063
(19 may 2006). At present, the bank operates as “A” class financial institution licensed
by Nepal Rastra Bank and carries out commercial banking activities as per the provisions
of the “Bank and Financial Institutions Act 2073”, (2017)

RBBL endured many stressful years of business and faced existential questions at some
point of time in the past. But learning the lessons from the events and craving towards the
brighter future, the Bank Successfully implemented a restructuring plan; and now it
stands as one of the most preferred bank with the highest number of customers all 77
districts and 7 Provinces of the country.

The Bank has been able to imprint its presence in national economy throughh efficient
allocation of resources in all sectors of economy thereby enhancing production and
generating employment opporrtunities within the country. The unflinching faith and
goodwill bestowed by our customers countinued support from the Government, well
wishers and general public has been the reason for us to stand as the most trusted bank in
the country.
 3

1.3 Statement of the Problem

The study aims to investigate the credit policy based on loans and advances of Rastriya
Banijya Bank Limited (RBBL). Specifically, it seeks to assess the loan and advance
management in relation to total assets and profitability, as well as analyze the Non-
Performing Loan (NPL) Ratio of RBBL. This research addresses the need to understand
how RBBL manages its credit portfolio and the effectiveness of its lending practices in
supporting the bank's overall financial performance.

1.4 Objective of the Study

The objectives of the study is to find out the credit policy on the basic of loan and
advances of the Rastriya Banijya Bank Limited. The objective of the study are as follows:

 To measure the loan and advance with total assets of the RBBL.
 To measure the loan and advance with profitability of the RBBL.
 To analysis the NPL Ratio of the RBBL.

1.5 Rationale

The rationale for this study lies in the critical role that credit policies play within
commercial banks, particularly in institutions like Rastriya Banijya Bank Limited
(RBBL), which serves as a cornerstone of the Nepalese financial system. Commercial
banks are pivotal in pooling community savings and allocating them to productive uses,
thereby facilitating economic growth and development. Understanding the intricacies of
credit policies, especially in terms of loans and advances, is crucial for ensuring the
stability and profitability of banks like RBBL.

With a comprehensive examination of RBBL's credit policy, this study aims to shed light
on several key aspects. Firstly, it seeks to evaluate the management of loans and advances
in relation to RBBL's total assets and profitability. By analyzing these metrics, the study
can provide insights into how effectively RBBL utilizes its resources to support lending
activities while ensuring sustainable profitability.
 4

1.6 Literature Review

The literature review section of the study cover the overview of the Nepal banking
system and the capital requirement, the theoretical and empirical study review in the
areas of financial performances of development bank of Nepal. Moreover, in present the
variable summary and conceptual framework as well as the knowledge gap and
conclusion.

Conceptual review

In this section provides a critical analysis of the most relevant theories, from the classical
to the modern approaches, also presenting the theoretical concepts of the studied field,
the definition of the main variables, as the main theories and researches relating the
financial performance of commercial banks.

A variable that influence the dependent variable in positive or negative way is known as
independent variable. Such variables do not change due to the change in other variables
but it leads to change in dependent variables such as loan ratio, total assets, shareholders
equity, net profit.

NPA is defined as an asset that does not contribute to the income of the bank. It is a loan
asset, whose recovery (principal and/or interest) has been difficult for the financial
institution for whatsoever reasons. In other words, a loan from which repayment of
principal or interest is not forthcoming as per the facilities agreement at as demanded
by the bank. In simple terms, NPA is defined as the bad debt for banks and financial
institution. Hence, it is important that a study be taken to study the impact of non-
performing assets.

Performing Loans are those loans that repay principal and interest timely to the bank
from the cash flow it generates. It other word, performing loan are the productive
assets that generate the some profits. Loans have the certain time period to return its
principal with its interest. If anyone repays loan with its interest on time is known as
the performing loan. Different country may have different policy to classify the
performing loans. In the context of Nepal, loans that have fallen under ‘pass’ category
 5

are treated as performing loan. It is the most profitable assets of banks. Better
performing loan are the symbol of success of banks. But many banks are suffering from
the non-repayment of loan amount (Choudhury, 2002)

Review of previous works

Pradhan (2012),conducted thesis titled "A study of Non-Performing Assets of

Commercial Banks of Nepal" with reference to Nepal Bank Limited, RastriyaBanijya
Bank, Nepal Bangladesh Bank, Everest Bank and Standard Chartered Bank Nepal
Limited. The main objectives of study are to find out the proportion of nonperforming
loan and the level of NPAs in total assets total deposit and total lending ,evaluate the
relationship between loan and loan loss provision ,present the trend line of the non-
performing assets, loan and advances, loan loss provision of selected commercial bank.

Khadka (2013), thesis titled Non Performing Assets of Nepalese Commercial Banks
"With reference to Nabil Bank Ltd, Nepal SBI Bank, Nepal Investment Bank, Nepal
Bangladesh Bank and Bank of Kathmandu. His main objectives are to examine the level
of nonperforming loan/asset in total assets, total deposit and total lending of Nepalese
commercial banks, effects of non-performing loans to return on assets (ROA) & return on
equity (ROE) and following of NRB circulars by commercial banks.

Shrestha, (2013) was conducted credit management of Nabil Bank Limited, with the
objective on relationship between the non performance loan and performance loan of the
bank and the findings of this research is sigficantly positive.

Ligal, (2014) states that has studied the topic about credit management of Bank of
Kathmandu Limited with the objective of analyze the lending efficiency of the bank and
to identified that the lending efficiency of the bank is in significantly increasing trend
because the overall credit management is in good position.

Pandey (2015) was conducted loan lending policy of Paschimanchal Finance Company
Limited. The study of loan policy is the process of identifying forms key of loan in
different sectors to be carried on for and then ensuring effectively identified the loan
invited in different sector has been into effect.
 6

Shrestha (2017) was conducted the multiple analyses have shown that all the variables
except service sector lending have positive impact on GDP. Thus, in conclusion she has
accepted the hypothesis i.e. there has been positive impact by the lending of commercial
banks in various sectors of economy, except service sector investment.

Gupta, R. (2019) under the topic loan lending of Agricultural Development Bank his
objective is to know the loan management of ADB and he found that the bank has been
making its great effort for the economic development of the Nepalese people as well as
country.

1.7 Research Methodology

The purpose of the research methodology section is to describe the nature of the research
design, sampling, gathering and procedure and data collection and analysis procedures.
This section includes the following information:

1.7.1 Research Design

This research has followed the descriptive research design. Research design that is
developed with the aim of studying the subject of details and explain the facts and
characteristics related to research problem is known as descriptive design. The main goal
of this report is to describe the data and characteristics about what is being studied.

1.7.2 Data Collection Procedure

While preparing the data in collected from secondary sources. Secondary data refers to
data that was collected by someone other than the user. It is originally collected from
different sources. So, in the course of preparing this report the necessary data and
documents are collected only from secondary sources.

Secondary Data

Secondary data is defined as data collected earlier for a purpose other than the one
currently being pursued. Secondary sources refer to those for already gathered by others.
They are referred to as coming from secondary sources such include
 7

 Annual report
 Books

1.7.3 Population and Sample

The population refers to the industries of the same nature and its services and product in
general. Population is the entire collection of interest i.e People, Objects or events as
defines by the researcher and sample is the entire collection of all observations of the
interest for the researcher. Currently; there are 20 commercial banks in Nepal. Out of
total 20 commercial bank of Nepal, Rastriya Banijya Bank Limited is taken as sample for
this report to study.

1.7.4 Data Analysis Tools

The analysis of data consists of organizing and performing financial analysis in this study
various financial ratios have been used to achieve the objective of this study. According
to the pattern of data available the analysis of data will be done. Different Financial ratio
and statistical tools have been used to prepare this report writing.

A. Statistical Tools:
 Mean
 S.D
 Correlation
B. Financial Tools:
 Financial ratios

1.8 Limitations of the study

The limitations of the study are as follows:

 The study will be based on the secondary data.

 This study will be based on three fiscal years i.e. 2077/78 BS to 2079/80 BS.
 Only few financial & statistical tools will be used in the analysis.
 8

1.9 Organization of the study

A project work report has the following three chapters.
Chapter-I Introduction
It includes background of the study, profile of the organizations, objective of the study,
methods, Review of literature, Limitation of the study.
Chapter-II Results and Analysis
It includes presentation and results and findings of projects work.
Chapter-III Summary and Conclusion
It includes a brief summary of the report and conclusion based on the findings of the
report.
Lastly, bibliography and appendices are added at the end of this report.
 9

CHAPTER II
RESULTS AND ANALYSIS
2.1 Data Presentation
The data collected from the various sources have been analyzed and findings its results.
Data have been analyzed according to the research methodology as mentioned. In this
chapter data has been presented tabular form. To know about the performance of the bank
various ratios have been calculated on the basis of the annual report of the organization.

Loan and Advance to Total Assets

Table 2.1

Loan and Advance to Total Assets

Year Loan and Advance Total Assets Ratio

2076/77 177,870 309,987 57.38

2077/78 210,183 330,242 63.65

2078/79 227,308 394,021 57.69

Note: Annual Report of RBBL

Table 2.1 shows that the loan and advance to total assets of the Rastriya Banijya Bank
Limited in the three fiscal year period from 2077/78 BS to 2079/80 BS. The loan and
advance to total assets ratio of the RBBL are 57.38 percent, 63.65 percent and 57.69
percent in the three fiscal year period. The higher loan and advance ratio of the RBBL is
63.65 percent which is in the fiscal year 2077/78 BS and lower ratio is 57.69 percent
which is in the fiscal year 2078/79 BS. The loan and advance to total assets ratio of the
RBBL is in fluctuation trend in the three fiscal year period.
 10

65
64
63
62
Ratio in Percentage

61
60
59
Ratio
58
57
56
55
54
2077/78 2078/79 2079/80
Fiscal Year

Figure 2.1: Trend Line of Loan and advance with total assets

Figure 2.1 shows that the trend line of loan and advance with total assets of the Rastriya
Banijya Bank Limited in the three fiscal year period from 2075/76 BS to 2079/80 BS.
Over the span of three fiscal years from 2077/78 BS to 2079/80 BS, the Rastriya Banijya
Bank Limited (RBBL) observed fluctuations in its loan and advance to total assets ratio.
This ratio stood at 57.38 percent, 63.65 percent, and 57.69 percent during this period.
Notably, the highest loan and advance ratio recorded was 63.65 percent in the fiscal year
2077/78 BS, while the lowest ratio occurred at 57.69 percent in the fiscal year 2078/79
BS. These figures indicate a discernible trend of fluctuation in the RBBL's loan and
advance to total assets ratio over the specified three-year period.
 11

Loan and advance to total deposit

Table 2.2

Loan and advance to Total Deposit

Year Loan and Advance Total Deposit Ratio

2076/77 177,870 263,836 67.42

2077/78 210,183 258,144 81.42

2078/79 227,308 321,659 70.67

Note: Annual Report of RBBL

Table 2.2 shows that the loan and advance to total deposit of the Rastriya Banijya Bank
Limited in the three fiscal year period from 2077/78 BS to 2079/80 BS. The loan and
advance with total deposit ratio of the RBBL are 67.42 percent, 81.42 percent, 70.67
percent in the three fiscal year period. The higher loan and advance to total deposit ratio
of the RBBL is 81.42 percent which is in the fiscal year 2077/78 BS and lower ratio is
67.42 percent which is in the fiscal year 2076/77 BS. The loan and advance to total
deposit ratio of the RBBL is in fluctuation trend in the three fiscal year period.
 12

90
80

Ratio in Percentage 70
60
50
40
Ratio
30
20
10
0
2077/78 2078/79 2079/80
Fiscal Year

Figure 2.2: Trend Line of Loan and Advance to Total Deposit

Figure 2.2 shows that the trend line of loan and advance to total deposit of the Rastriya
Banijya Bank Limited in the three fiscal year period from 2075/76 BS to 2079/80 BS.
Over the course of three fiscal years spanning from 2077/78 BS to 2079/80 BS, the
Rastriya Banijya Bank Limited (RBBL) experienced fluctuations in its loan and advance
to total deposit ratio. This ratio stood at 67.42 percent, 81.42 percent, and 70.67 percent
during this period. Notably, the highest loan and advance to total deposit ratio recorded
was 81.42 percent in the fiscal year 2077/78 BS, while the lowest ratio occurred at 67.42
percent in the fiscal year 2076/77 BS. These figures illustrate a discernible trend of
fluctuation in the RBBL's loan and advance to total deposit ratio over the specified three-
year period.
 13

Investment to Loan and Advance

Table 2.3

Investment to Loan and Advance

Year Total Investment Loan and Advance Ratio

2076/77 71,061 177,870 39.95

2077/78 65,377 210,183 31.10

2078/79 76,090 227,308 33.47

Note: Annual Report of RBBL

Table 2.3 shows that the Investment to Loan and Advance ratio of the Rastriya Banijya
Bank Limited in the three fiscal year period from 2077/78 BS to 2079/80 BS. The
investment to loan and advance ratio of the RBBL are 39.95 percent, 31.10 percent and
33.47 percent in the three fiscal year period. The higher investment to loan and advance
ratio of the RBBL is 39.95 percent which is in the fiscal year 2076/77 BS and lower ratio
is 31.10 percent which is in the fiscal year 2077/78 BS. The investment to loan and
advance ratio of the RBBL is in fluctuation trend in the three fiscal year period.
 14

45
40

Ratio in Percentage 35
30
25
20
Ratio
15
10
5
0
2077/78 2078/79 2079/80
Fiscal Year

Figure 2.3: Trend Line of Investment to Loan and Advance Ratio

Figure 2.3 shows that the trend line of Investment to Loan and Advance ratio of the
Rastriya Banijya Bank Limited in the three fiscal year period from 2075/76 BS to
2079/80 BS. Across the three fiscal years from 2077/78 BS to 2079/80 BS, the Rastriya
Banijya Bank Limited (RBBL) witnessed fluctuations in its investment to loan and
advance ratio. This ratio stood at 39.95 percent, 31.10 percent, and 33.47 percent during
this period. Notably, the highest investment to loan and advance ratio recorded was 39.95
percent in the fiscal year 2076/77 BS, while the lowest ratio occurred at 31.10 percent in
the fiscal year 2077/78 BS. These figures indicate a discernible trend of fluctuation in the
RBBL's investment to loan and advance ratio over the specified three-year period.
 15

Non Performing Loan Ratio

Table 2.4

Non Performing Loan Ratio

Year Non Performing Loan Total Loan NPL Ratio

2076/77 5926 177,870 3.33

2077/78 4800 210,183 2.28

2078/79 9353 227,308 4.11

Note: Annual Report of RBBL

Table 2.4 shows that the non performing loan of the Rastriya Banijya Bank Limited in the
three fiscal year period from 2077/78 BS to 2079/80 BS. The non performing loan ratio
of the RBBL are 3.33 percent, 2.28 percent and 4.11 percent in the three fiscal year
period. The higher non performing loan ratio of the RBBL is 4.11 percent which is in the
fiscal year 2078/79 BS and lower ratio is 2.28 percent which is in the fiscal year 2077/78
BS. The non performing loan ratio of the RBBL is in fluctuation trend in the three fiscal
year period.
 16

4.5
4

Ratio in Percentage 3.5

3
2.5
2
Ratio
1.5
1
0.5
0
2077/78 2078/79 2079/80
Fiscal Year

Figure 2.4: Trend Line of Non Performing Loan

Figure 2.4 shows that the trend line of non performing loan of the Rastriya Banijya Bank
Limited in the three fiscal year period from 2075/76 BS to 2079/80 BS. Over the span of
three fiscal years from 2077/78 BS to 2079/80 BS, the Rastriya Banijya Bank Limited
(RBBL) experienced fluctuations in its non-performing loan ratio. This ratio stood at 3.33
percent, 2.28 percent, and 4.11 percent during this period. Notably, the highest non-
performing loan ratio recorded was 4.11 percent in the fiscal year 2078/79 BS, while the
lowest ratio occurred at 2.28 percent in the fiscal year 2077/78 BS. These figures
illustrate a discernible trend of fluctuation in the RBBL's non-performing loan ratio over
the specified three-year period.

2.2 Analysis of Results

The Rastriya Banijya Bank Limited (RBBL) underwent varied trends across multiple
financial metrics over the three fiscal years analyzed. Firstly, examining the loan and
advance to total assets ratio, it oscillated between 57.38 percent, 63.65 percent, and 57.69
percent. The highest ratio was observed in the fiscal year 2077/78 BS, indicating a
significant allocation of assets towards loans and advances, while the lowest ratio
occurred in 2078/79 BS, suggesting a relative decrease in such investments. Similarly,
 17

the loan and advance to total deposit ratio demonstrated fluctuations, ranging from 67.42
percent to 81.42 percent. The highest ratio occurred in 2077/78 BS, reflecting a greater
proportion of advances in relation to total deposits, whereas the lowest ratio was noted in
2076/77 BS, indicating a lesser proportion of advances relative to deposits. Regarding the
investment to loan and advance ratio, it fluctuated between 39.95 percent, 31.10 percent,
and 33.47 percent. The highest ratio was registered in 2076/77 BS, indicating a relatively
higher investment allocation compared to loans and advances, while the lowest ratio was
observed in 2077/78 BS, reflecting a lesser proportion of investments in relation to loans
and advances. Finally, the non-performing loan ratio also displayed variability, ranging
from 3.33 percent to 4.11 percent. The highest ratio was recorded in 2078/79 BS,
suggesting an increase in non-performing loans, while the lowest ratio occurred in
2077/78 BS, indicating a decrease in non-performing loans during that period. These
trends collectively depict a dynamic financial landscape for RBBL, marked by
fluctuations in various key ratios over the analyzed fiscal years.

2.3 Findings

The major findings of the study are as follows:

 The loan and advance to total assets ratio of the RBBL are 57.38 percent, 63.65
percent and 57.69 percent in the three fiscal year period. The higher loan and
advance ratio of the RBBL is 63.65 percent which is in the fiscal year 2077/78 BS
and lower ratio is 57.69 percent which is in the fiscal year 2078/79 BS. The loan
and advance to total assets ratio of the RBBL is in fluctuation trend in the three
fiscal year period.
 The loan and advance with total deposit ratio of the RBBL are 67.42 percent,
81.42 percent, 70.67 percent in the three fiscal year period. The higher loan and
advance to total deposit ratio of the RBBL is 81.42 percent which is in the fiscal
year 2077/78 BS and lower ratio is 67.42 percent which is in the fiscal year
2076/77 BS. The loan and advance to total deposit ratio of the RBBL is in
fluctuation trend in the three fiscal year period.
 18

 The investment to loan and advance ratio of the RBBL are 39.95 percent, 31.10
percent and 33.47 percent in the three fiscal year period. The higher investment to
loan and advance ratio of the RBBL is 39.95 percent which is in the fiscal year
2076/77 BS and lower ratio is 31.10 percent which is in the fiscal year 2077/78
BS. The investment to loan and advance ratio of the RBBL is in fluctuation trend
in the three fiscal year period.
 The non performing loan ratio of the RBBL are 3.33 percent, 2.28 percent and
4.11 percent in the three fiscal year period. The higher non performing loan ratio
of the RBBL is 4.11 percent which is in the fiscal year 2078/79 BS and lower
ratio is 2.28 percent which is in the fiscal year 2077/78 BS. The non performing
loan ratio of the RBBL is in fluctuation trend in the three fiscal year period.
 19

CHAPTER III
SUMMARY AND CONCLUSION
3.1 Summary
In this project work report is entitled on credit analysis of Rastriya Banijya Bank Limited.
The research is done in only one bank among the 20 commercial bank i.e. Rastriya
Banijya Bank Limited which is listed in Nepal Stock Exchange. The objectives of the
study are to identify the various types of deposit to analyze deposit ratio of the sample
banks. This research is mainly based on importance and significance of the study. The
data and information are collected from secondary sources such as journals and articles,
annual report of the sample banks, previous research report, and websites of the sample
banks. The limitations of this study are reveals with past three years data i.e. 2077/78 BS
to 2079/80 BS.

According to the need and objectives of the study, the secondary data is completed,
processed, tabulated and graph for better presentation with the help of various statistical
tools. Sample bank has broadened its transaction successfully and is moving ahead
towards the goals. RBB is one of the pioneer banks in the country, with a history of
nearly a half century. Rastriya Banijya Bank Limited (RBBL) has a history of serving its
customers far and wide across the nation for more than half a century. The study delves
into the realm of credit analysis within the context of Rastriya Banijya Bank Limited
(RBBL), shedding light on its significance, trends, and implications. Beginning with an
exploration of the importance of commercial banks in economic development and the
role of credits in capital formation, the study underscores the pivotal position of RBBL in
Nepal's financial landscape.

3.2 Conclusion

In conclusion, the study delved into the financial dynamics of Rastriya Banijya Bank
Limited (RBBL) over a three-year period, exploring key ratios and trends in loan and
advance management. Across various fiscal metrics, including loan and advance to total
assets, loan and advance to total deposit, investment to loan and advance, and non-
performing loan ratios, RBBL exhibited fluctuating patterns. Notably, the bank
 20

experienced shifts in its allocation of assets towards loans and advances, with peak ratios
observed in the fiscal year 2077/78 BS, indicating a robust investment in these areas.
Conversely, fluctuations were also evident in non-performing loan ratios, with peaks in
2078/79 BS suggesting challenges in loan recovery. These findings underscore the
dynamic nature of RBBL's financial landscape, influenced by factors such as market
conditions and internal policies. Moving forward, the bank may benefit from a nuanced
understanding of these trends to inform strategic decision-making and enhance overall
financial performance.
 21

REFERENCES

Brealey, R. A., Myers, S. C., & Allen, F. (2017). Principles of Corporate Finance (12th

ed.). McGraw-Hill Education.

Catorelli, M. (2001). Commercial Banks. In G. F. Mathis & R. W. Sayers (Eds.),

Encyclopedia of Financial Engineering and Risk Management (Vol. 1, pp. 168-

170). Chapman & Hall/CRC.

Choudhury, G. (2002). Non Performing Assets (NPAs) in Indian Commercial Banks: A

Study of Public and Private Sector Banks. Delhi Business Review, 3(2), 16-24.

Gupta, R. (2019). Loan Lending of Agricultural Development Bank. Unpublished

master's thesis, Tribhuvan University, Nepal.

Khadka, R. (2013). Non-Performing Assets of Nepalese Commercial Banks. Unpublished

master's thesis, Tribhuvan University, Nepal.

Ligal, S. (2014). Credit Management of Bank of Kathmandu Limited. Unpublished

master's thesis, Tribhuvan University, Nepal.

Pandey, S. (2015). Loan Lending Policy of Paschimanchal Finance Company Limited.

Unpublished master's thesis, Tribhuvan University, Nepal.

Pradhan, R. (2012). A Study of Non-Performing Assets of Commercial Banks of Nepal.

Unpublished master's thesis, Tribhuvan University, Nepal.

Shrestha, A. (2013). Credit Management of Nabil Bank Limited. Unpublished master's

thesis, Tribhuvan University, Nepal.

Shrestha, R. (2017). Impact of Commercial Bank Lending on Economic Growth of

Nepal. Unpublished master's thesis, Tribhuvan University, Nepal.

 22

APPENDICES

Rastriya Banijya Bank Limited

Particulars/ Fiscal Years 2075/76 2076/77 2077/78 2078/79 2079/80

Borrowings
Deposits 189,255,335 230,902,636 263,836,765 258,144,297 321,659,484
Income Tax Liability
Other Liabilities
Current Liabilities 189,255,335 230,902,636 281,313,156 297,563,866 343,283,422

Share Capital 9,004,795 9,004,795 10,184,891

Reserve and Funds 11,186,516 13,263,128 15,035,604 15,875,136
Debenture and Bonds
Total Capital and Liabilities 226,410,177 266,766,261 309,987,456 330,242,804
Shareholders Equity 20,191,311 22,267,923 28,674,300 32,678,937 50,738,307
Cash and Bank Balance
Money at Call & Short Notice
Investment 40,181,642 74,769,660 71,061,224 65,377,116 76,090,626
Loan & Advances 142,022,875 155,254,600 177,870,982 210,183,764 227,308,982
Other Assets 14,243,429 6,364,264 3,981,293 6,404,963 5,886,219
Current Assets 225,286,143 265,210,540 308,143,168 327,075,325 363,659,635
Quick Assets 43,081,626 35,186,280 59,210,962 51,514,445 60,260,027

Fixed Assets 1,124,034 1,555,721 1,844,288 3,167,479 30,362,094

Non Banking Assets
Total Assets 226,410,177 266,766,261 309,987,456 330,242,804 394,021,729

Particulars/ Fiscal Year

Interest Income 14,923,052 17,160,174 16,229,108 20,689,738
Interest Expenses 4,974,936 7,711,772 8,019,658 11,393,790
Net Interest Income 9,948,115 9,448,401 8,209,449 9,295,948

Operating profit 6,470,434 5,939,658 4,496,990 5,817,398 4,962,248

Profit before bonus & Taxes 6,616,162
Net Profit/ Loss 5,046,520 4,377,316 3,423,628 4,292,821 3,595,127