A STUDY ON CAPITAL STRUCTURE ANALYSI

OF MACHHAPUCHCHHERE BANK LIMITED

A Project Work Report

Submitted By
.............
Regd no: - 7-2-201
Exam Roll no. 703180
Myagdi Multiple Campus
Group: Account

Submitted To
The Faculty of Management
Tribhuvan University
Kathmandu, Nepal

In Partial Fulfillment of the Requirement for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)
Phulbari, Beni Myagdi
february, 2022
 DECLARATION

I hereby declare that the project work entitled “A STUDY ON CAPITAL

STRUCTURE of MACHHAPUCHCHHERE BANK LIMITED" submitted to the
faculty of Management, Tribhuvan University, Kathmandu is an original piece of
work under the supervision of Mr.SUBEDI, faculty member, MYAGDI MULTIPLE
CAMPUS BENI and is submitted in partial fulfillment of the requirements for the
award of 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.

…………………
Date: - 2079/11/11
 ABSTRACT

For better management of these new and specialized areas of business, a through
education and knowledge of the respective area is required. Tribhuvan University
(TU) has started a four-year Bachelor's in Business Studies (BBS) course that
includes the field visit report on various sectors. This step has insured production of
skill manpower in those fields within the country.
This paper analyses empirically the factor that determined financial performance of
MEGA for the period 2074/75 to 2078/79. This project was done at
"Machhapuchchhere Bank Limited". It is leading private sector bank in Nepal. It also
provides service to the public at conveniently. The present study has been taken five
major objectives. They are : To analyze Strength and weakness in term of capital
structure, To measure the bank's efficiency in meaning and utilizing the available
capital, To know the structure of capital which helps to taking decision and minimize
the risk, To take leverage benefits and minimize leverage (liquidation) risk. The study
has examined the portion of equity and debt in capital of bank using various data,
tables, and bar diagram. The research confirmed that MACHHAPUCHCHHERE is
identified as one of the largest commercial bank in Nepal which performs service
oriented activities; create multi-structural, multi-facet and multi-layered opportunity
for poverty alleviation.

v
 ACKNOWLEDGEMENT

This Fieldwork project assignment report has been prepared for the partial fulfillment
of the requirement for the degree of bachelor of Business Studies (BBS) under the
Prescribed format of Faculty of Management, Tribhuvan University, Nepal. This
Report attempts to analyze financial structure of MEGA Bank.
While bringing this report in this complete form, valuable guidance,
Suggestions and supports have been received from many individuals. First of all I
would like to gratitude to my supervisor for his remarkable support and guidance.
Finally I dearly thanks to my supervisor and research head of Myagdi multiple
campus Mr Shreedhar Subedi, my brother Mr Promod Sharma, all my teacher, Mr
Kumar Dhunghana branch manager of MEGA Bank Nepal Limited and thanks
those who help me to prepare this field work report.
.

………………………….
Myagdi Multiple Campus, Beni
Date:-Febrary,21/2023

Table of Content

vi
Title page i
Declaration ii
Supervisor’s Recommendation iii
Endorsement
iv
Abstract
v
Acknowledgement
vi
Table of content
vii
List of Table ix
List of Figure x
Abbreviations xi
Page No.
CHAPTER I : INTRODUCTION 1
1.1.1 Background of the Study 1-4
1.2 Objective of the Study 4
1.3 Rationale of the Study 4
1.4 Limitation of the Study 5
1.5 Review of literature 5
1.6 Method of Study 6-7

CHAPTER II: RESULT AND FINDING OR ANALYSIS 8

2.1 Presentation of Data in Tables and Figure and Their Analysis 8-20

2.2 Major Finding 20

CHAPTER III: SUMMARY AND CONCLUSION 21
3.1 Summary 21-22
3.2 Conclusion 22-23
vii

Bibliography 24

Appendices 25

viii
 LIST OF TABLE

Table Title Page

2.1 Sources of Capital Structure 9

2.2 Composition of Capital Structure (FY 073/74) 10
2.3 Composition of Capital Structure (FY 074/75) 11
2.4 Composition of Capital Structure (FY 075/76) 12
2.5 Composition of Capital Structure (FY 076/77) 14
2.6 Composition of Capital Structure (FY 077/78) 15
2.7 Growth of Share Capital for Five Years. 16
1.7 Growth of Reserve Fund for Five Years 17
2.9 Growth of Long term-debt for Five Years 19

ix
 LIST OF FIGURE

Table Title Page

2.1 Figure Showing Composition of Source of Capital (FY 074/75) 10

2.2 Figure Showing Composition of Source of Capital (FY 075/76 11
2.3 Figure Showing Composition of Source of Capital (FY 076/77) 13
2.4 Figure Showing Composition of Source of Capital (FY 077/78) 14
2.5 Figure Showing Composition of Source of Capital (FY 078/79) 15
2.6 Figure showing growth of Share Capital for Five Years 17
2.7 Figure Showing Growth of Reserve Funds for Five Years 18
2.8 Figure Showing Growth of Long term Debt for Five Years 19

x
 LIST OF ABBREVIATION

ABBREVIATION Meaning
FY : - Fiscal year
Ltd : - Limited
MBL :-Machhapuchchhere Bank Limited
NRB :-Nepal Rastra Bank
Rs. : - Rupees
TU :-Tribhuwan University
% :- Percentages
(000) :- Rupees in thousand

xi