The Study on Financial Performance of

SIDDHARTHA BANK LIMITED

Submitted By:
Laxmi Prasad Adhikari
th
BBS 4 Year, (Finance Group)

T.U. Registration No: 7-2-805-62-2019

Submitted To:
Faculty of Management
Tribhuvan university
Bardiya, Nepal
In partial fulfillment of the requirements for theBachelor’s Degree in Business
studies
Dated: 15 march 2024
 Declaration
I hereby declare that the project work entitled ‘Analysis of Financial Performance of
SIDDHARTHA BANK Ltd.’ Submitted to the Faculty of Management, T. U., Kathmandu is
an original piece of work under the supervision of Mr. NARAYAN PRASAD SUBEDI,
faculty member of BARDIYA MULTIPLE CAMPUS in BARDIYA and is submitted in
partial fulfillment of the requirements for the award of degree of Bachelor’s in Business
Studies. This project work report hasn’t been submitted to any other university for the award
of any Degree or diploma.

LAXMI PRASAD ADHIKARI

Date: April 15 2024
 SUPERVISOR’S RECOMMENDATION

The project work report entitled ‘Analysis of Financial Performance of SIDDHARTHA Bank
Ltd.’ Of BARDIYA MULTIPLE CAMPUS, BARDIYA, is prepared under my supervision
as per the procedure and format requirements laid by the Faculty of Management, T. U., as
partial fulfillment of the requirements for the award of the degree of bachelors of business
studies. I, therefore, recommend the project work report for evaluation.

………………………………
NARAYAN PRASAD SUBEDI
BARDIYA MULTIPLE CAMPUS
 Endorsement
We hereby endorse the project work report entitled ‘Analysis of financial performance of
SIDDHARTHA BANK Ltd’ by LAXMI PRASAD ADHIKARI of BARDIYA MULTIPLE
CAMPUS, BARDIYA, submitted in partial fulfillment of the requirements for award for the
Bachelor of Business Studies for external evaluation.

………………………….
……………………………..
MR.CHANDRA PRASAD JAISHI
BARDIYA MULTIPLE CAMPUS
April 15
 Acknowledgement
This study attempts to examine the financial performance of SIDDHARTHA BANK Ltd, with
available data and information. It deals with the problem identification besides the field
study to acquire the reality of banking operation of SIDDHARTHA BANK Ltd. For easier study
the data has been presented by tables, graphs and have been interpreted using various
statistical methods.
I express my heartiest gratitude to Mr. NARAYAN PRASAD SUBEDI for guiding and inspiring
me to do this work.
Similarly, I am equally thankful to all the teacher of BARDIYA MULTIPLE CAMPUS,
Department of Management who helped me preparing this project. I would like to extend
my gratitude to our college Campus chief Mr. CHANDRA PRASAD JAISHI for his continuous
encouragement in our study.
I would like to extend my sincere thanks to the staff of SIDDHARTHA BANK Ltd, for providing
me related data, information and contribution.
Finally, I want to thank my family, friends and colleagues for their continued moral support.

LAXMI PRASAD ADHIKARI

BARDIYA MULTIPLE CAMPUS
March 17
 ABBREVIATION
ATM - Automatic Teller Machine
BBA - Bachelor of Business Administration
E-Banking - Internet Banking
EPS - Earning Per Share
FOM - Faculty of Management
FU - Far-Western University
FY - Fiscal Year
IT - Information Technology
L/C - Letter of Credit
Ltd - Limited
RBBL - Rastriya Banijya Bank Limited
MOF - Ministry of Finance
NRB - Nepal Rastra Bank
NRS - Nepalese Rupees
ROA - Return on Assets
ROE - Return on Equity
S.D. - Standard Deviation
SWOT - Strength, Weakness, Opportunity and Threats
 LIST OF TABLES & CHARTS
List of Table:
Table 1: Nepalese Financial Institutions 3
Table 2: Capital Structure 11
Table 3: Financial Structure 17
Table 4: Liquidity Ratio 18
Table 5: Leverage Ratios 19
Table 6: Profitability Ratios 20
List of Figures:
Chart 1: Organizational Structure 10
Chart 2: Graphical Representation of Financial Structure 17
Chart 3: Graphical Representation of Liquidity Ratio 18
Chart 4: Graphical Representation of Leverage Ratios 19
Chart 5: Graphical Representation of Profitability Ratios 20
 TABLE OF CONTENTS
Cover Page
Supervisor Declaration
Declaration
Acknowledgement
Abbreviation
List of Table & Figures
Table of contents
Contents
CONTENTS
CHAPTERS PageNo.
CHAPTER I 1-16
INTRODUCTION
1.1 General Background 1
1.1.1Evolution of Bank in Nepal 1
1.1.2Current Banking Scenario in Nepal 2
1.1.3Commercial Bank 3
1.2 Introduction of Bank 4
1.2.1Organization's Vision 5
1.2.2Organization's Mission 5
1.2.3Major Objectives of Organization 5
1.2.4Products and Services 6
1.2.4.1 Deposits 6
1.2.4.2 Loans 8
1.2.4.3 Other Services Provided by RBB 8
1.2.5Organizational Structure 10
1.2.6Financial Structure 11
1.3 Statement of the Problem 11
1.4 Review of Literature 12
1.6 Objectives of the Study 13
1.7 Significance of the Study 13
1.8 Research Methodology 14
1.8.1Research Design 14
1.8.2Data Collection 14
 1.8.3Method of Data Analysis 15
1.8.3.1 Ratio Analysis 15
1.8.3.2 Statistical Analysis 15

CHAPTER II 16-20
DATA PRESENTATION AND ANALYSIS OF DATA
2.1 Financial Ratio 16
2.1.1Liquidity Ratio 16
2.1.2Leverage Ratio 16
2.1.3Profitability Ratio 17
2.2 Financial Analysis 17
2.2.1Financial Structure Analysis 17
2.2.2Liquidity Analysis 18
2.2.3Leverage Analysis 19
2.2.4Profitability Ratio 20

CHAPTER III 22-23

SUMMARY, CONCLUSION AND RECOMMENDATION
3.1 Summary 22
3.2 Conclusion 22
3.3 Recommendation 23
BIBLIOGRAPHY
APPENDIX
 CHAPTER ONE
INTRODUCTION
1.1 General Background
Bank is an institution which deals with money and credit. It accepts deposits from the
public & mobilizes the fund to productive sectors. Bank raises the funds from
accepting deposits, borrowing funds & issuing equity. These funds are lending for
make loans & buy securities. It collects scattered money from the public in the form
of deposit by providing them the certain percent of interest and distributes the
accumulated fund to other, who is in need of money by charging the certain percent of
interest which is usually higher than the interest that it gives to the depositors. Since,
it accepts deposits & grants loan, so it is regarded as trader of money or dealer of
money. It also provides remittance facility to transfer money from one place to
another. Thus, the spread between interest on lending and borrowing is the bank's
profit. Banking sector definitely plays a pivotal role in the overall development of an
economy.
Some definitions of bank are:
A bank is a financial institution, which provides financial services that may be in the
form of accepting deposits, advancing the loan, providing necessary technical advice,
dealing over foreign currencies, remitting funds, etc. - Nepal Rastra Bank Act, 2002
Bank is an organization established for the purpose of exchange money, deposit
lending money & participation in transaction. - Commercial Bank Act, 2031.
So, bank can be defined as any business organization that offers acceptance of
deposits which is subject to withdrawal on demand and grants loans and credit to
private individuals and business firms on commercial basis. In the present context, the
bank had become the basic need of the human which performs not only the basic
financial activities but also performs other the non-financial activities to ease the
human life. Banks are providing a wide range of services like remittance, financial
counseling, securities investment, bank assurance, lockbox facilities, swift transfer
etc. However, these changes are brought out by the change in the needs and demands
of the people.
1.1.1 Evolution of Bank in Nepal:
The history of banking in Nepal is believed to be started from the time of Prime
Minister Ranoddip Singh in 1877 A.D. he introduced many financial and economic
reforms. The Tejaratha Adda was established at that time and its basic purpose was to
1 | T h e s t u d y o n f i n a n c i a l p e r f o r m a n c e o f SIDDARTHA BANK.
provide credit facilities to the general public at a very concessional interest rate of
5%. The Tajarath Adda disbursed credit to the people on the basis of collateral of gold
and silver. All employees of government were also eligible for this type of loan,
which was settled by deducting from their salary. Tajaratha Adda extended credit
only; it did not accept deposits from the public. Hence, the establishment of Tajaratha
Adda is regarded as the foundation of modern banking in Nepal. However, 'Kaushi
Tosh Khana' established during the regime of King Prithvi Narayan Shah is also
considered as the first step towards initiating banking development in Nepal.
Nepal entered the world of banking with the establishment of Nepal bank limited in
1994 B.S. which was founded by Judda Samsher, as a semi-government organization
without the existence of a central bank in the country under special Banking Act
1936, having elementary function of a commercial bank. 51% of the paid up capital of
Nepal Bank Limited is owned by the Government and 49% owned by the public. Its
main function was to provide loans and accept deposits. Later, on Nepal Rastra Bank
was set up on 2013 B.S. as the first central bank under Nepal Act 2012 B.S. with an
objective of supervising, protecting and directing the functions of commercial
banking activities. The bank was completely government ownership bank and it also
started to issues notes since 2016 B.S. Another commercial bank fully owned by the
government, "SIDDHARTHA BANK" was established in 2002, which made it
possible for the Nepal Rastra Bank to devote more attention to the important aspects
of economic, monetary and fiscal development.
Nepalese banking sector hadn't experienced much growth till 1980's because of the
closed policies of Nepal Government. Till 1980's banking industry hadn't opened to
the private sectors and the foreign investment. But after 1980's Nepal government
liberalized its banking policies and opened the door for the private and foreign
sectors. Only after 2041 B.S. Nepal government allowed joint venture banks to
operate in the country, which gave a new horizon to the financial sector. Nepal Arab
Bank Limited later renamed as Nabil Bank Limited established in B.S. 2041 as a first
joint venture bank proved to be a milestone in the history of banking which gave hope
to the sluggish financial sector. Thereafter, two foreign joint venture banks, Nepal
Indosuez Bank Ltd. (Now called as Nepal Investment Bank) and Nepal Grind lays
Bank Ltd.(Now called as Standard Chartered Bank Nepal Ltd.) was established in
1986 and 1987 respectively. Then after, several commercial banks have been
established in the recent years.
2 | T h e s t u d y o n f i n a n c i a l p e r f o r m a n c e o f SIDDHARTHA BANK
1.1.2 Current Banking Scenario of Nepal:
After the restoration of democracy in Nepal, there has been tremendous development
in the banking sector. The economic and financial reform policies undertaken by the
government have increased both number of banks and the types of services offered.
Banks are gradually shifting towards IT-based solution to enhance service delivery in
order to address customer concerns. Bank have launched various products like E-
banking, ATM, mobile banking which facilities several account query tools, including
account balances, thereby minimizing the need for customers to visit banks. As a
number of banks increase its regulation also becomes tough. For the purpose of
regulation and controlled NRB had divided the depository financial institutions into
four classes on the basis of minimum paid up capital requirement and functions. This
classification is the inappropriate classification financial institution.
Table 1.1: Nepalese Financial Institutions
Class Types of Institutions Paid up Capital (In Crore) Numbers
A Commercial Banks 800 Core 28
B Development Banks 200 Core 39
C Finance Companies 150 Core 28
D Micro Finance 80 Core 29
Source: www.nrb.org.np
1.1.3 Commercial Bank:
Commercial Bank is the "A" class depository financial intermediary which raises
funds by collecting deposits from businesses and consumers and provides loans to
businesses and consumers. It also buys corporate bonds and government bonds. Its
primary liabilities are deposits and primary assets are loans and bonds. Commercial
banks come into existence mainly with the objective of collecting the idle funds,
mobilizing them into the productive sector in order to enhance the overall economic
development of the nation.
According to NRB act, Commercial Banks are those depository financial institutions
which possess the below features:
 Has the minimum paid up capital of 8 billion.
 No limit on resource mobilization.
 Can operate nationwide.
 Can do all fund based as well as non-fund based activities.

3 | T h e s t u d y o n f i n a n c i a l p e r f o r m a n c e o f SIDDHARTHA BANK
The commercial banks operating in Nepal are permitted to do both the fund based and
non-fund based activities as the global commercial banks. Listing out the major
activities performed by the commercial banks would result as below:
Primary Function:
 Acceptance of Deposit
 Lending
 Investment
Secondary Function:
 Agency Services
 Collection and Payment of Cheques
 Standing Instruction
 Collecting of Bills - electricity, gas, telephone etc.
 Purchase and Sales of Stocks/Share act as a banker to issue
 Safe Custody - bailee
 Lockers-Trustee
 Remittance Facilities
 Advisory Services
 Providing Credit Reports
 Opening L/C
 Demand in Forex/Travels Cheque etc
1.2 Introduction of Organization
In the banking history of Nepal, SIDDHARTHA Bank (SB) is the second pioneer
bank of the country that provide an exceptional and competitive banking services to
the Nepali market. SIDDHARTHA Bank (RBB) is fully government owned, and the
largest commercial bank in Nepal. SB was established on 2002 under the SB Act
2021 with an initial authorized capital of 1 core. It was inaugurated by late king His
majesty Mahendra Bir Bikram Shah Dev. Now, the bank is running under bank and
financial institute act 2063. It started its banking operation through 7 branches
covering 7 districts and 7 zones. With its head office located at Singhadurbar,
Kathmandu, SB has been a pioneer in Nepalese banking sector for more than 50
years. With its line yours own Bank, SB is one of the market leaders and the largest
banking sector of Nepal. The Bank has currently entered into 51 years of service. SB
provides various banking services to a wide range of customers they include elite to
poor individuals, institutional customers, and
the customers from industry or business communities. SB has been contributing to
socioeconomic development of the country for the last four and half decades.
The Bank with 2600 hands has expanded its wings in the most part of the country
through multiple distribution outlets of 160 branches, 17 counters, 28 branch less
banking (BLB) and 72 ATMs. Through its widest branch and ABBS network SB has
been catering modern Banking services to millions of customers. SB has many
correspondent arrangements with major international banks all over the world that
facilitate trade finance, bank-originated personal funds transfers and interbank funds
transfer via SWIFT. In a bid to promote remittance business, SB works with CG
money remit, Prabhu Money Transfer, Express Money Services Limited, Instant Cash
Global Money Transfer, Western Union and International Money Express. The bank
has played crucial role for the development of financial sector i.e. bank, insurance
companies through its promoter’s role. As a second commercial bank of the country,
the bank has been contributing in the almost all sector of the country such as trade,
industry, hydropower and agricultural sector etc. Health and Education sector are also
benefitted through its disbursement. The bank is also in the frontline towards fulfilling
corporate social responsibility. The bank has been working as a development partner
by acting as a fund administrator of Poverty Alleviation Fund (PAF). The bank has
made significant contribution in the development of private sector either by loan
disbursement or by active participation in the fairs organized by industrial and
business communities.
1.2.1 Organization’s Vision:
To provides innovative banking services to everyone, every time and everywhere for
the economic development of the nation.
1.2.2 Organization’s Mission:
To provide easy and innovative banking products and services for our customers by
implementing one stop service concept from our wide network using our modern
technology qualified human resources in competitive environment. We always look
for the benefit of the local communities supporting entrepreneurship, social
responsibility and economic prosperity of the nation.
1.2.3 Major objectives of organization
The main objective of SB is to provide banking services to the people in general of
the country thereby enhancing their economic interest and facility as well and
contributing in the socio economic development of the country.
The objectives of the SB are as follows:-
 Focus on providing innovative financial services
 Increase in capital base of the bank by meeting the minimum capital
requirement.
 Business growth and increase in market share
 Enhance operational efficiency
 Sustainable increase in profits
 Focus on empowerment of deprived class
 To facilitate lending at productive sectors and SMEs.
1.2.4 Products and services
Products and services are the tangible and intangible goods that can be taken and
consumed. They are created by the firms and are consumed by the ultimate customers.
SB’s major commercial banking product and services include:
1.2.4.1 Deposits
Deposits are the kind of products or services that the bank provides to the customers.
In fact, it is the money kept by the customers in the bank with some interest to be
received in near future. The deposit also plays a role of guard by safeguarding the
customers’ money and providing them in time of money as per the rules and
regulations of the bank.
Current deposit
Every business has banking needs and SB rightly meets the needs in today's fast
paced business. The networked branches of SB give the power to transfer funds in and
across cities in a flash.
Features
Withdrawal below Minimum Balance
Extended Banking Hours in Kathmandu Valley Branches
Standing Instruction
Cash Management
Free Cheque book
Saving deposit
Saving deposit account at SB is designed with array of features which not only
ensures attractive returns to idle money but also makes personal banking convenient
and efficient. It is basically focused towards encouraging small savings. The savings
accounts provided by the bank are:
 Normal saving account
Student saving account
Karmayogi saving account
Mahalaxmi saving account
Chunamuna saving account
SB special saving account
SB sunaulo saving account and so on.
Features
Attractive interest rate.
Affordable balance
Unlimited withdrawals deposits
Extended banking hours in Kathmandu valley branches
Free cheque book
Fixed deposit
SB’s fixed deposit account ensures safe custody of customers fund along with
attractive interest rates. Fixed deposits are the deposits with tenure ranging from
seven days to over two years. Fixed call deposit at SIDDHARTHA Bank allows
diversifying customer’s portfolio to best suit their investment plans. Some of the
products of SB’s fixed deposit accounts are as follows:
Normal fixed deposit
SB special fixed deposit
SB corporate fixed deposit
Corporate bulk deposit
Diamond fixed deposit
Features
Attractive interest rate
Wide options of tenure
Convenient account opening
Auto renewal possible
Loan facility up to 90% of deposit amount
Call deposit
Call deposit is of fixed deposit nature however the tenure is quite less ranging from
seven days to one month Attractive interest rates with additionally facility of that of
fixed deposit account. Different type of call deposit accounts are:
  Normal call deposit
 Institutional or corporate call deposit
 RBB special call deposit
1.2.4.2 Loans
Loans are one of the most important factors for generating revenue. The main source
of income of the bank is the difference between the loan it provides to the customers
and the deposit (loan to the bank) it receives from the customers i.e. spread. So
SIDDHARTHA Bank also provides loan to various customers to help them finance
their short term, medium term as well as long term financial needs. The bank provide
a full range of solutions including short to medium term commercial lending,
structured finance and transaction banking to meet banking requirements of customer.
Besides traditional lending, it also engineer tailor made solution to meet constantly
changing needs. SB provide different loan and these loans are:-
 Business Loan
 Funded loans
 Overdraft loan
 Hypothecation loan
 Housing loan
 Vehicle loan
 Educational loan
 Loan against gold
 Agriculture loan
 Personal loan
 Teachers loan
1.2.4.3 Other services provided by SB
 Remittance
This special feature helps the tourists and especially the Nepalese workers abroad to
transfer funds to Nepal as and when required the receiver can get the transferred
money upon the completion of a simple form requirement without any hassles and
within no time. Remittance service is provided through draft, SWIFT and telegraphic
transfer, mail transfer, fax transfer. SIDDHARTHA Bank (SB) has operated online
web based remittance system, where by money can be sent to Nepal from Worldwide.
Payments can be collected from more than 156 branch offices of the SB
  Electronic banking
SIDDHARTHA Bank facilitate banking with a click of a mouse and where people can
keep track of the account from anywhere in the world. SB has robust, instant, secure
and reliable banking solution for its clients.
 Any Branch banking system
SB has been providing Any Branch Banking Service to the all branches across the
country to help the customers get the amount from anywhere and any place within
Nepal. In this kind of facility, the sender can send the money from any branch within
Nepal and the receiver can receive the money from anywhere within loan.
 SMS banking service
SB has started SMS Banking service. Now your bank balance is at your fingertips.
This service is available from all branches. Basic services provided by SMS banking
are:
a) Current balance inquiry
b) Last transaction inquiry
 SB ATM / Debit card service
SB is visa associate member bank. Bank has launched Debit card services for all the
branches with in Kathmandu valley and the service has been extending to the other
branches out of Kathmandu valley.
 Electronic Cheque Clearing (ECC)
Rastriya Banijya Bank facilitates Electronic Cheque Clearing system. ECC system is
an inter-bank cheque clearing solution. The operating rules will help the members to
perform their daily cheque clearing operation using ECC safely and efficiently, the
operating rules in this document are based in the rule book issued by the NRB. ECC is
the state of the art interbank cheque clearing solution that has replaced the manual
cheque clearing solution in Nepal. It is an image based, cost effective, cheque clearing
and settlement solution, where the original paper cheque are transferred to scanned
images in order to be presented electronically through the secured communication
channels from the member in which they are deposited to the member on which they
are drawn resulting in a faster access to funds, lower transportation expenses and
increased cheque trust. ECC calculates the multilateral net clearing position and sends
to the settlement system of NRB for settlement of the net clearing position of the
direct member. Its central clearing mechanism lies at Nepal Clearing House Limited.
1.2.5 Organizational structure
An organizational structure is a formal, guided process for integrating the people,
information and technology of the bank. It is used to match the form of the bank as
closely as possible to the purpose(s) the bank seeks to achieve. It consists of activities
such as task allocation, coordination and supervision which are directed towards the
achievement of bank’s aims. It can also be considered as the viewing glass or
perspective through which individuals see the bank and its environment.
The Board of Directors (BOD) is the head of the SIDDHARTHA Bank. They are
responsible for policy making and guidance to the management. The government
nominates all board members including the chairman. The executive power is vested
in the Chief Executive Officer (CEO). CEO is the highest-ranking corporate officer or
administrator in charge of total management of the bank. An individual appointed as
CEO reports to the BOD. He/she has the responsibility to act as a communicator,
decision maker, leader, manager and executor. He/she advises the Board of Directors,
motivates employees, and drives changes within the bank. As a manager, the CEO
presides over the bank’s day-to-day, month-to-month, and year-to-year operations.
RBB has 19 departments in its head office that are operating under the Deputy
General Manager. There are 5 regional offices across the five development regions of
the country. The Branch Operation Department is responsible for supervising the 160
branch networks. The Internal Audit Department monitors the work of the branches
and regional offices.
Structure describes the hierarchy and position within an organization. The
organizational structure of SB is presented below:
Organizational Structure of Mahendranagar Branch
Figure 1.1 Organizational Structure of Mahendranagar Branch

Branch Manager

Asst. Branch Manager Asst. Branch Manager

CSD IT, E- Teller Credit& Remit Administration

Department Banking & Department Recovery Department Department
ATM
1.2.6 Financial structure
Financial structure is the way in which a company’s assets are financed, such as short-
term borrowings, long-term debt and owner’s equity. Financial structure differs from
capital structure in that capital structure accounts for share of the bank are held by
government. The bank’s financial structure can be calculated in table 1.2
Table No. 1.2 Financial structure of RBBL
Authorized capital 10,000,000,000/-
Issued Capital 9,000,000,000/-
Paid Up Capital 8,588,972,300/-
Source: AGM Report 2072/73
1.3 Statement of the Problem
Nepal is an economically backward country; most of its resources remain unused due
to the lack of financing. This inadequacy of financing can be removed by the
government with the establishment of SIDDHARTHA Bank Limited. With the
liberalization policy of government, joint venture banks are welcomed in Nepal which
make the industry competitive. In Nepalese market the fluctuation price is slightly
higher than other country which has direct relation with the liquidity of bank. Bank
should have ready access to immediately expendable funds at reasonable cost
precisely at the time those funds are needed. Joint venture banks are in many numbers
at present days. Every organization must try to keep itself financially sound. It creates
a tough competition in the banking industry. Government owned banks have also
going smoothly with technology and be financially sound with other commercial
banks. To become financially sound the organization must have profitability, liquidity
and capital adequacy ratio at standard level. Various empirical studies have been
carried out regarding analysis of financial performance. They have significantly
contributed in making flow of funds within the country. But only the establishment of
commercial banks does not guarantee success. Success of commercial bank depends
upon its performance. In other word, their contribution for the economic development
purely depends upon their performance.
 Highlight the financial structure of the bank and analyze them to see the
financial soundness of the bank.
 Highlight the liquidity and leverage position of SB.
 What is the profitability position of SB?
1.4 Review of Literature
The trend of Commercial banking is changing rapidly. Competition is getting stiffer
and, therefore, banks need to enhance their competitiveness and efficiency by
improving performance. Normally, the financial performance of commercial banks
and other financial institutions has been measured using a combination of financial
ratios analysis, benchmarking, measuring performance against budget or a mix of
these Methodologies. A review of literature connected with the working performance
of financial institutions in Nepal and abroad was done, and is presented under the A
Study on Profitability and Liquidity Position through ratio Analysis. Some of the
related literatures of reviews are as follows.
Gary W.selnow (2003) examined various approaches to promote retirement
investment .His study found that automatic enrolment has a good chance of
overcoming the natural impediments to wise decisions about retirement investments.
Douglas A.Hersahey and Hendrik p. Van Dalen (2006) in the study explored the
Psychological mechanisms that underlie the retirement planning and saving
tendencies of Dutch and American Workers the research suggests that policy analysts
should take into account both individual and cultural differences in the psychological
predispositions of workers when considering Pension reforms that stress individual
responsibility for planning and saving.
M.Kabir Hassan and Dr.Shari Lawrance (2007) conducted a survey on “An
Analysis of Financial preparation for Retirement ''. In this study, the researcher
analyzes the financial preparation for retirement. Regarding retirement plan
contributions, the findings indicate significant positive effects regarding income and
womanhood .Education is significant and positive as a predictor for the decision to
contribute to a pension plan for women in their thirties, thus supporting the hypothesis
of a significant positive relationship between education and pension plan
Contributions.

1.5 Objectives of the study:

The basic objective of this study is to examine and evaluate the financial performance
of SIDDHARTHA Bank Ltd. to achieve this objective. The following are some
objective which also considered in this study:
 To examine the financial structure of the bank and analyze them to see the
financial soundness of the bank.
  To determine the liquidity position of the bank.
 To examine the leverage position of RBB.
 To observe the return over the equity and asset.
1.6 Limitation of Study
th
This study is conducted in partial fulfillment of the requirement for BBS 4 Year. So, it
possesses some limitation of its own. One of the limitations with regard to tempera
coverage of the study to arrive any meaningful conclusion regarding the trend in the
pattern and a financial time series of fairly a long period are needed. But this study has
covered only financial year from 2075/76 to 2079/80. Research mostly use secondary
data 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. The other limitations of the study are listed below:
 Researcher has time and resources consentient.
 Data contain mostly of the annual reports of the bank.
 Only five year's observation covering FY 2075/76 to FY 2079/80 is analyzed.
 Limited variable has been selected.
 Simple technique has been used to analysis.
1.7 Significance of the study
The basic objective of this study is to examine and evaluate the financial performance
of Siddhartha Bank Limited to achieve this objective. This study comprises the data
of five fiscal year (2075/76-2079/80) The following objectives are also considered in
this study:
 To examine the financial statement of the bank and analyze them to see the
financial soundness of the bank.
 To provides reliable and quality banking services to the public.
 To deliver full range of quality banking services to the doorstep of customer
through various delivery channels with effective and efficient use of human and
technical responsibility and generate reasonable profit for the shareholders.
 To determine the liquidity position of the bank.
 To observe the return over the equity.
 To highlight the relation between the current assets and current liabilities.
Providing all-out support to new exporters as well as to existing exporters.
 Enhancing efficiency and dynamism by using e-commerce and e-governance.
1.8 Research Methodology
The purpose of this study is to evaluate the factors determining the performance of
SIDDHARTHA Bank Ltd. The data are mainly obtained from the annual audited
financial statements of SBL and yearly economic survey. The study has used a
descriptive and analytical research design. It is based on secondary data taken from
financial statements, annual reports and web-sites of Nepal Rastra Bank as well as
Nepal Stock Exchange. Considering the 21 commercial banks listed at Nepal Stock
Exchange as its total population, this study has studied the financial performance of
SIDDHARTHA bank Ltd. The choice of this bank is justified for being the pioneer
bank of Nepal operationalized on January 23, 1966 (2022 Magh 10 BS). Similarly,
SIDDHARTHA bank is biggest government sector bank with the net-worth per share
in 2079/80figuring Rs. 27.42. The study covered the period of five fiscal years from
2075/76 to 2079/80 to study the financial performance of commercial banks.
1.8.1 Research Design
The financial ratios of the SIDDHARTHA Bank Ltd. have been analyzed with the
help of parameters, analytical techniques, tools employed. Ratio Analysis was
undertaken with a view to studying financial Performance related to the bank. The
financial ratio analysis was considered to be an effective tool in providing bird's eye
view of the performance of a bank. The financial ratio represents the relationship
between two accounting figures expressed mathematically. Ratio analysis technique is
popular in the accounting system and helps in spotting the strengths and weakness of
an enterprise. The study is based on Analytical research of SIDDHARTHA Bank
Limited's for the financial performance of banking. It relies upon financial tools and
statistical tools.
1.8.2 Data collection
To conduct this study, the secondary data were derived from Statistics bulletin of
Nepal Rastra Bank and Financial Statement of SIDDHARTHA Bank Ltd. Further
data were collected through published annual reports and annual general meeting
reports of bank. In this Study, five year data have been used for analysis.
1) Secondary Data:
This research mainly use secondary data source from the publication of
SIDDHARTHA Bank Ltd, and some publications of NRB, MOF, are also used. These
data have been tabulated in a suitable sheet prepared for the purpose. Analyzing and
interpreting the collected data, summary has been drawn.
1.8.3 Method of Data Analysis
Data analysis methods are tools that the researcher used for present and analyzed the
data. In this report collected and observed data are tabulated after adjusting
necessarily amounts of each overhead. However for the analysis of data following
tools are used.
1.8.3.1 Ratio Analysis
Ratio analysis is a widely used tool of financial analysis. The term ratio is refers to the
relationship expressed in mathematical terms between two individual figures or group
of figures connected with each other in some logical manner and are selected from
financial statements of the concern. It helps to express the relationship between two
accounting figures in such a way that users can draw conclusions about the
performance, strengths and weakness of a firm.
 Liquidity Ratio
 Debt ratio
 ROA; ROE and EPS
1.8.3.2 Statistical analysis:
The study has used arithmetic mean, standard deviation Coefficient of Variation and
Correlation coefficient on the data of past five years. The data were processed and
analyzed on the Excel worksheet software.
 Mean
 Standard deviation&
 Coefficient of variance
 Coefficient of variation
 CHAPTER II
DATA PRESENTATION AND ANALYSIS OF DATA
The main purpose of data presentation and analysis is to study, evaluate, analyze and
compare the major financial performance of Siddhartha Bank Ltd. Major indicators
are calculated, analyzed and compared by using the statistical tools & present by
graph, like bar diagram, tables, lines etc. These available data are translated, analyzed
and interpreted so that financial forecast of banks can be done easily. Though there
are many indicators but due to some sort coming and constraints, only related
indicators have been taken for analyzing the strength and weakness of the
SIDDHARTHA Bank Ltd.
2.1 Financial Ratio
Financial statement analysis generally begins with the calculation of set of financial
ratios designed to reveal the relative strength and weaknesses of a company as
compared to other companies in the same industry and to show weather the firm's
position has been improving or deteriorating over time.
2.1.1 Liquidity Ratio
Liquidity means how quickly an asset can be converted into cash or the marketability
(capability to convert an asset to cash very easily) of the assets to meet the short term
financial obligations.
 Net working Capital = Current assets - Current Liabilities

2.1.2 Leverage ratio

The leverage or solvency ratio measures how effectively the firm is managing its
assets. Mainly there are two solvency ratios. First one is debt to assets ratio generally
measures the percentage of total funds provided by creditors and the second one debt
to equity ratio measure total debt and net worth ratio of the company.
2.1.3 Profitability Ratio
Profitability is the net result of a large number of policies and decisions. The ratios
examined thus provide some information about the way the firm operating, but the
profitability ratios show the combined effects of liquidity, assets management and
debt management on operating results. In this fieldwork report the following
profitability ratio are used.

 ROA=

 ROE=

 EPS=
.

2.2 Financial Analysis

2.2.1 Financial Structure Analysis
Table No. 2.1 Financial Structure (Figures in thousands)
Year 2079/80 2078/79 2077/78 2076/77 2075/76
Liabilities
Share Capital 8,588,972 8,588,972 8,588,972 8,588,972 5,497,610

Reserve &
17,277 (1,913,208) (6,202,400) (7,316,484) (8,624,247)
Surplus
Debenture 943,800 1,305,345 1,778,600 2,167,176 2,923,127
Deposit 146,207,634 124,221,662 107,269,942 91,093,909 87,782,196
Bills Payables 152,859 14,560 16,127 17,254 18,092
Other Liabilities 10,521,543 7,343,474 11,109,545 6,972,679 6,221,747
Source: AGM Reports
Figure No. 2.1 Graphical representation of financial structure of RBB
160,000,000
Share
140,000,000 Capital
120,000,000 Reserve &
Surplus
100,000,000
Debentur
80,000,000 e
Deposit
60,000,000

40,000,000 Bills
20,000,000 Payables
Other
0 Liabilities
-20,000,000 2075/76 2076/77 2077/78 2078/79 2079/80
The paid up capital of this bank is increasing from fiscal year 2075/76 to 2079/80. The
share capital was Rs. 5,49,76,10,000 in fiscal year 2075/76, and it reached up to Rs.
8,98,89,72,000 on 2079/80. The reserve and surplus is positive in fiscal years 2079/80
only. On the other observed fiscal year, the reserve and surplus is negative. In fiscal
year 2075/76, the reserve and surplus is negative by Rs. (8,62,42,47,000).
But the debentures and bonds are decreasing in every year. The borrowings that are in
fiscal year 2075/76 are Rs. 2,92,31,27,000 which is reduced to Rs 94,38,00,000 in
fiscal year 2079/80. The deposit is increasing in every year. In fiscal years 2079/80 of
the deposit reached up to Rs. 1,46,20,76,34,000. The other liabilities are also in
increasing trend in every year.
2.2.2 Liquidity Analysis:
Liquidity means how quickly an asset can be converted into cash or the marketability
(capability to convert an asset to cash very easily) of the assets to m eet the short
term financial obligations. The following are the different ratios of the SBL in
different fiscal year:
Table 2.2 Liquidity ratio
Ratios 2079/80 2078/79 2077/78 2076/77 2075/76
Current ratio 0.83 0.83 0.84 0.78 0.76
quick ratio 0.28 0.25 0.30 0.28 0.34
NWC (in lakh) (242,088) (205,099) (173,057) (197,490) (209,030)
Source: AGM Reports
Figure 2.2 Graphical Representation of Liquidity ratio

1
ratio

0.5
0 Quick Ratio

2076/77 Current Ratio

2077/78
2078/79
2079/80

2075/76 2076/77 2077/78 2078/79 2079/80

Current Ratio 0.83 0.83 0.84 0.78 0.76
Quick Ratio 0.28 0.25 0.3 0.28 0.34

It is believed that the standard current ratio is 2:1. But in the banking sector, the
standard ratio is 1:1. In the basis of above data, we can say that the current ratio is no
more fluctuation. The current ratio in fiscal year 2075/76 is 0.83 which is constant in
fiscal year 2076/77. It was decreased in fiscal year to 0.78 and also decreased in fiscal
year 2079/80.
It is believed that the standard quick ratio is 1:1 but it is not meet by any commercial
bank. In the above data the quick ratio is going on increasing trend slowly. The quick
ratio in fiscal year 2075/76 is 0.28 which is increased in fiscal year 2079/80, i.e. 0.34.
NWC is calculated by total current assets minus total current liabilities. It is not
shown in figure. In the observed five fiscal, the value is negative. In the fiscal year
2075/76 it was Rs. (209030) lakh. In the FY 2079/80 it was increased and valued at
Rs. (242,088) lakh. It is not well for the bank of negative value of net working capital.
2.2.3 Leverage Analysis
The leverage or solvency ratio measures how effectively the firm is managing its
assets. Mainly there are two solvency ratios. First one is debt to assets ratio generally
measures the percentage of total funds provided by creditors and the second one debt
to equity ratio measure total debt and net worth ratio of the company. The leverage
ratios of SBL are as follows:
Table No. 2.3 Leverage Ratios
Ratios 2079/80 2078/79 2077/78 2076/77 2075/76
debt to asset 0.95 0.95 0.98 0.99 1.03
debt to equity 18.34 19.91 50.35 78.78 (31.01)

Figure No. 2.3 Graphical Representation of Leverage Ratios

80
60
40
20
0 Debt to Equity ratio
-20
2079/80 2078/79 Debt to asset ratio
-40 2077/78
2076/77
2075/76

2079/80 2078/79 2077/78 2076/77 2075/76

Debt to asset ratio 0.95 0.95 0.98 0.99 1.03
Debt to Equity ratio 18.34 19.91 50.35 78.78 -31.01
The above data shows that the debt to asset ratio is going on decreasing trends. In the
fiscal year 2075/76, it was 1.03 which was decreased and it was counted be 0.99 in
fiscal year 2076/77. In subsequent fiscal year, it was also decreased. in the fiscal year
2077/78 it was valued at 0.98. In the fiscal year 2078/79 and 2079/80 the value is
constant at 0.95.
But in the case of debt to equity ratio, it was just opposite i.e. it was in increasing
trend or not a negative value. In fiscal year 2075/76 the value of debt to equity ratio is
negative i.e. (31.01). In the subsequent year it was increased. In the FY 2076/77 it
was increased and valued at 78.78. After this FY, the debt to equity ratio is going on
decreasing but not reached to negative. In FY 2079/80, it was valued at18.34.
2.2.4 Profitability Analysis
Profitability is the net result of a large number of policies and decisions. The ratios
examined thus provide some information about the way the firm operating, but the
profitability ratios show the combined effects of liquidity, assets management and
debt management on operating results.
Table No. 2.4 Profitability Ratios
Ratios 2079/80 2078/79 2077/78 2076/77 2075/76
ROA 0.01 0.03 0.01 0.01 0.01
ROE 0.27 0.70 0.77 1.03 -0.38
EPS 27.42 54.07 21.38 15.25 21.55

Figure No. 2.4 Graphical Representation of ROA and ROE

1.2

0.8

0.6

0.4 ROE

0.2 ROA

0
2075/76 2076/77 2077/78 2078/79 2079/80
-0.2

-0.4

-0.6
In the basis of data, the ROA is constant for selected fiscal year. In the FY 2075/76,
the ROA is 0.01 and it is constant is subsequent fiscal years.
In the selected years, the ROE is going on increasing trends. In the FY 2075/76, it had
negative value i.e. (0.38). In the FY 2076/77, it was increased and valued at 1.03
times. In the next FY it was valued at 0.77 times which is decreased then previous
fiscal year. It was also decreased in next following years. In FY 2078/79 and 2079/80
it was valued at 0.70 and 0.27 respectively, which was decreased than previous year's
value.
The EPS was presented in rupees. It was fluctuated in different fiscal years. In FY
2075/76 EPS was valued at Rs. 21.55 per share which was decreased in next FY
2076/77 where it was valued at Rs.15.25. In FY 2077/78 it was increased and valued
at Rs. 21.38 per share. It was also increased in FY 2078/79 and valued at Rs. 54.07
per share. In FY 2079/80, the value of EPS was decreased and valued at Rs. 27.42 per
share. It shows that the EPS was fluctuated in several years.
 CHAPTER III
SUMMARY, CONCLUSION AND RECOMMENDATION
3.1 Summary
From the above data analyzed and presentation as well as from all major findings, it
has been concluded that SIDDHARTHA Bank Ltd is the bank which has meet
maximum rules and guidelines of NRB and government. So I have concluded that it is
one which has strong financial positions and satisfactory performance. I think it was a
best commercial bank in Nepal as it is also analyzed from all of its achievements.
As we know that ratio is simply the relationship between five financial statements
stated as percentage. There are generally three categories of ratio which are used for
analyze the data which presents the real position of the organization from various
angels.
As after analyzing its entire ratio of five fiscal years, it was found that the overall
performance of SIDDHARTHA Bank Ltd is well enough. The profitability ratio of
SBL shows a positive result such as its operating profit, net profit, ROA, ROE and
EPS is in increasing trend. It has a great amount of collection of deposits and lending
properly. The analysis of ratios such as return on equity, return on assets and total
deposit reflects SBL's way of efficiently mobilizing its capital to generate higher
income.
3.2 Conclusion:
SIDDHARTHA Bank Limited is fully government owned bank in the Nepal. So, its
functions are not only concentrating on the profit earnings, it also helps to government
for different financial activities. From above all data analysis and presentation as well
as from all major findings, it has been concluded the SIDDHARTHA Bank is one of
the competitive commercial bank in Nepal as it is also analyzed from all of its
achievements. As after analyzing its entire financial statement of five successive
years, it is found that the overall performance of SIDDHARTHA Bank Ltd is
satisfactory, but it is also seems that it need to cut out the unnecessary expenses along
with full utilization of resource. The overall trend of liquidity ratios are in not
smoothing in SBL. Fluctuating trend of the liquidity ratios make difficult in increase
the trend of profitability of the banks. So, according to liquidity and profitability of
RBBL overall position is satisfying. The profitability ratio of SBL shows positive
results in fluctuation trend such as its operating profit, net profit and earnings per
share is in fluctuation and have slow increment.
3.3 Recommendation
SBL is the most reputed bank in the Nepal. SBL has great deposit amount than other
commercial banks. It shows the trustworthiness of the bank. On the basis of analysis
and findings of the study, the following recommendation can be made.
 When it comes to liquidity analysis, cash flow information is more reliable
than balance sheet or income statement information. Balance sheet data are
static due to the measurement of only a single point in time while the
income statement contains many arbitrary non-cash allocations so for
further study cash flow analysis would appropriate.
 The Profitability ratio shows profitability position of SBL that is little bit
poor. Therefore, bank should concentrate on increase in ROA, ROE and
Operating income by effective utilization of Assets used and cutout
unnecessary expenses.
 The total expenses position of SBL shows that the bank has been
successful in winning the trust of the customer, as volume of expenses is
no more difference and it's growing slowly than previous years. There is
general rise and fall in expenses level during different years. It should give
basic priority to the customers and personnel first and then the
organizational objectives, which will help to develop effective value chain
in the organization.
 BIBLIOGRAPHY
Pant, Prem Raj (2002). Field Work Report Assignment and Report Writing
KATHMANDU
Ross, s.A, Westerfiels, R.W. and Jordan, B.D. (2004). Fundamentals of Management,
New Delhi: Tata McGraw-Hill Publishing Co.Ltd. Pandey I.M (1993), financial
management
Official website of RBBL www.Sb.com.np
Official website of NRB www.nrb.gov.np
1. Annual General Meeting reports 2075/76 of SBL
2. Annual General Meeting reports 2076/77 of SBL
3. Annual General Meeting reports 2077/78 of SBL
4. Annual General Meeting reports 2078/79 of SBL
5. Annual General Meeting reports 2079/80 of SBL

24 | T h e s t u d y o n f i n a n c i a l p e r f o r m a n c e o f R B B L
 APPENDIX
Table 1: Balance Sheet for five fiscal year
CAPITAL AND LIABILITIES 2015/16 2014/15 2013/4 2012/13 2011/12
Share Capital 8,588,972,300.00 8,588,972,300.00 8,588,972,300.00 8,588,972,300.00 5,497,610,000.00
Reserve and Surplus 17,277,151.02 (1,913,207,511.66) (6,202,399,551.02) (7,316,484,153.24) (8,624,247,317.15)
Contingency liability of LC,FCY dealing
Debenture and bonds 943,800,000.00 1,305,345,000.00 1,778,600,000.00 2,167,175,921.35 2,923,126,537.37
Deposit 146,207,634,274.46 124,221,662,307.70 107,269,942,364.25 91,093,908,713.75 87,782,195,672.46
Bills Payables 152,859,249.88 14,559,940.68 16,127,051.81 17,254,293.95 18,092,001.49
Proposed Dividend 86,570,000.00
Income Tax Liabilities
Other Liabilities 10,521,543,144.98 7,343,474,493.31 11,109,544,950.01 6,972,678,922.61 6,221,746,650.93
TOTAL CAPITAL & LIABILITIES 166,432,086,120.34 139,560,806,530.03 122,560,787,115.05 101,523,505,998.42 93,905,093,545.10
ASSETS
Cash Balance 4,488,211,690.30 3,830,588,195.24 3,027,642,564.56 2,400,662,480.59 2,373,995,713.03
Balance with Nepal Rastra Bank 20,720,083,213.21 17,990,163,566.70 20,847,481,867.64 11,973,729,508.00 13,990,024,537.22
Balance with Banks/Financial Institution 1,235,059,785.75 623,839,122.72 530,676,618.55 684,423,633.81 462,431,925.37
Money at call and Short Notice 2,296,000,000.00 450,000,000.00 341,074,500.00 480,000,000.00 512,300,000.00
Investments 43,768,304,627.56 35,310,274,930.62 32,089,382,023.69 29,672,248,531.65 26,497,527,645.94
Loans, Advances and Bills Purchase 81,778,174,696.65 72,079,280,711.18 57,293,325,749.35 45,599,151,212.40 36,779,719,816.72
Fixed Assets 512,062,882.64 524,201,241.11 491,065,147.80 489,108,991.72 510,307,253.09
Non Banking Assets
Other Assets 11,634,189,224.23 8,752,458,762.46 7,940,138,683.46 10,224,181,640.25 12,778,786,653.73
TOTAL ASSETS 166,432,086,120.34 139,560,806,530.03 122,560,787,155.05 101,523,505,998.42 93,905,093,545.10

Source: AGM report RBB

25 | T h e s t u d y o n f i n a n c i a l p e r f o r m a n c e o f R B B L
 Table 2: Income Statement for five fiscal years
PARTICULAR
Interest Income Interest 7,422,643,106.22 6,520,239,025.13 6,104,557,252.54 5,748,968,390.27 5,399,831,015.97
Expenses Net Interest 1,872,716,005.76 1,924,982,516.29 2,223,790,949.11 2,461,853,387.59 3,048,169,939.71
Income Commission and 5,549,927,100.46 4,595,256,508.84 3,880,766,303.43 3,287,115,002.68 2,351,661,076.26
Discount Other Operating 465,415,106.50 455,982,378.73 410,560,330.34 430,269,551.29 435,553,743.14
Income Foreign Exchange 552,623,310.12 485,733,552.79 371,048,896.33 321,131,198.19 228,941,625.86
Income Total Operating 13,143,090.14 42,349,340.25 33,746,707.86 100,820,421.47
Income Employee Salary 6,581,108,607.22 5,579,321,780.61 4,696,122,237.96 4,038,515,752.16 3,116,976,866.73
Expenses Other Operating 2,887,161,407.52 2,459,318,052.66 2,266,154,795.58 2,363,303,344.87 1,706,842,211.51
Expenses Foreign Exchange 914,624,099.12 856,863,832.84 731,851,046.61 699,402,291.98 585,051,122.96
Expenses 73,908,033.93
Income Before Provision for Bed debt
2,779,323,100.58 2,263,139,895.11 1,698,116,395.77 901,902,081.38 825,083,532.26
Provision for Bed debt 1,044,874,272.17 790,770,168.02 819,912,752.81 349,732,171.87 800,151,189.41
Operating Income Non- 1,734,448,828.41 1,472,369,727.09 878,203,642.96 552,169,909.51 24,932,342.85
Operating Income Bed 17,401,579.20 2,875,181,095.67 157,489,581.58 4,483,388.51 75,992,916.29
debt written off 1,102,899,372.05 657,398,922.06 837,511,159.93 805,922,760.24 969,376,761.16
Operating Profit Before Tax & Special
Income 2,854,749,779.66 5,004,949,744.82 1,873,204,384.47 1,362,576,058.26 1,070,302,020.30
Other Special Operating Income 397,686,727.80 803,841,698.59 155,703,100.96 111,902,139.86 214,038,079.78
Net Profit Before Tax 3,252,436,507.46 5,808,791,443.41 2,028,907,485.43 1,474,478,198.12 1,284,340,100.08
Employee Bones Provision 240,921,245.00 430,280,847.66 150,289,443.37 109,220,607.27 95,136,303.71
Provision for Income Tax 656,227,979.10 734,642,574.07 41,922,527.52 55,143,610.33 4,718,299.34
Current Year 647,429,126.34 728,953,572.74
Previous Year (46,906.05) (27,500,000.00) 4,718,299.34
Other Tax Expenses 8,845,758.81 5,689,001.33 69,422,527.52 55,143,610.33
Net Profit 2,355,240,377.31 4,643,868,021.68 1,836,695,514.54 1,310,113,980.52 1,184,485,497.03
Source: AGM report RBB
26 | T h e s t u d y o n f i n a n c i a l p e r f o r m a n c e o f R B B L
 Table 3: Ratio Analysis
ratios 2015/16 2014/15 2013/4 2012/13 2011/12
Current ratio (242,088) (20,509,892) (17,305,729) (19,749,015) (20,903,029)
quick ratio 0.28 0.25 0.30 0.28 0.34
debt to asset 0.95 0.95 0.98 0.99 1.03
det to equity 18.34 19.91 50.35 78.78 (31.01)
ROA 0.01 0.03 0.01 0.01 0.01
ROE 0.27 0.70 0.77 1.03 (0.38)
EPS 27.42 54.07 21.38 15.25 21.55
Source: AGM report RBB

27 | T h e s t u d y o n f i n a n c i a l p e r f o r m a n c e o f R B B L