Report 0f sunrise bank lubhoo

AN INVESTMENT ANALYSIS OF
SUNRI BANK LTD.
A Project Work Report
Submitted by
Utsav Ghimire
Pinnacle Collage
T.U. Reg. No. : 7-2-455-84-2019
Symbol No:704550027
Submitted to
The Faculty of Management
Tribhuvan University
Kathmandu
In partial Fulfilment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)
Lalitpur,Nepal
July, 2024
DECLARATION
I hereby declare that the project work entitled’’ An Investment Analysis of Sunrise Bank
Ltd.’’ submitted to the faculty of management, Tribhuvan University, Kathmandu is an
original piece of Work under the supervision Dr. Nirmal Tiwari, faculty member,Nepal
commerce Campus ,and is submitted in partial fulfilment 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.
.…………………….
Utsav Ghimire
T.U. Reg. No.7-2-254-2-2019
Symbol No. :704550027

SUPERVISOR’S RECOMMENDATIONS
This is to certify that Mr. Utsav Ghimire has prepared the project work report entitled
‘’Investment analysis of Sunrise Bank Ltd.’’ under my supervision and guidance as per the
procedure and format requirements, as partial fulfilment of the requirements for the award of
the degree of Bachelor of Business Studies (BBS).
I, therefore, recommend the project work report for evaluation.
.....................................
Nirmal Tiwari
Project Work Supervisor
Pinnacle collage
Date :
ENDORSEMENT
We hereby endorse the project work report entitled "An Investment Analysis of Laxmi
Sunrise Bank Ltd" submitted by Mr. Utsav Ghimire, Pinnacle collage,lagankhel., partial
fulfilment of the requirement for award of the Degree of Bachelor of Business Studies (BBS)
for external evaluation.
........................... ……..………………
Nirmal Tiwari Campus Chief
Research Department Campus Chief
Pinnacle collage Date…………
Date:
ACKNOWLEDGEMENT
I would like to express my deep gratitude to Pinnacle collage for allowing to carry out this
project work in partial fulfilment of the requirements for Bachelor of Business Studies (BBS).
I am extremely grateful and indebted my respected project work supervisor Nirmal Tiwari ,
Pinnacle collage lagankhel, in spite of his busy schedule spared his valuable moments to
provide me constructive input, in the way of guidance, inspiration, support and constant
encouragement to complete this project work. I would like to appreciate him for supervision
and inspirations to improve the quality of project work.
I wish to express my sincere gratitude to Campus Chief ,Risi Tiwari. I would also like to
thank all the administrative staff of Pinnacle college,Lagankhel.
I am thankful to my family members and all my friends who provided regular inspiration and
continuous contribution for the completion of project work.
Lastly, I heartily beg sorry for any mistake and assure to take responsibility for all comments.
c
TABLE OF CONTENTS
Title Page i
Declaration ii
Recommendation iii
Endorsement iv
Viva Voice Sheet v
Acknowledgement vi
Table of content vii
List of table vii
List of figure viii
Abbreviations ix
vi
LIST OF TABLE
Table Topic Page No.

Table No. 4.1 Deposit to assets ratio 21
Table No. 4.2 Investment to Total assets Ratio 22
Table No.4. 3 Cash to total Assets ratio 23
Table No.4. 4 Investment trend (in millions) 24
Vii
Chapter structure of the study
Chapter-1 Introduction
1.1 Background
1.2 Problem statement
1.3 Objective
1.4 Research Questions
1.5 Hypothesis
1.6 Significance
1.7 Limitation
1.8 Chapter structure
Chapter-2 Literature Review
1.1 General Review
1.2 Historical Review
1.3 Legal Review
1.4 Emperical Review
1.5 Theoretical Review
1.6 Conceptual Framework
1.7 Research Gap
Chapter-3 Research Methodology
3.1 Research Design
3.2 Geography
3.3 Sampling and Population
3.4 Data Collection
3.5 Data Analysis
3.6 Ethical Consideration
Chapter-4 Data Analysis
4.1 Demography
4.2 Objective 1
4.3 Objective 2
4.4 Objective 3
4.5 Conclusion
Chapter-5 Conclusion and Recommendation
5.1 Conclusion
5.2 Recommendation
LIST OF FIGURE
Figure Topic Page No.

Figure No. 2.1 Deposit to assets ratio
Figure No. 2.2 Investment to Total assets Ratio
Figure No.2. 3 Cash to total Assets ratio
Figure No.2. 4 Investment trend (in million)
viii
ABBREVIATIONS
A.D : Anno Domini
ACH : Automated Clearing House
ATM : Automated Teller Machine
B. S. : Bikram Sambat
Co. : Company
DPS : Dividend Per Share

EPS : Earning Per Share
F/Y : Fiscal Year
FD : Fixed Deposit
FVIFA : Future Value Interest Factor of Annuity
HBL : Himalayan Bank Limited
LA : Loan & Advance
LTD : Limited
MM : Merton Miller
MPS : Market Price
NEPSE : Nepal Stock Exchange
NII : Net Interest Income
LSBL : Laxmi Sunrise Bank Limited
NRB : Nepal Rastra Bank
Rs. : Rupees
SCBNL : Standard Chartered Bank Nepal Limited
WACC : Weighted Average Cost of Capital

Chapter-1
INTRODUCTION
1.1 Background of the study
The banking sector in Nepal has witnessed significant growth and transformation over
the past few decades. The establishment of private and commercial banks has
contributed to the overall economic development of the country by providing essential
financial services to a broad spectrum of customers. Among these financial
institutions, Sunrise Bank Ltd., established in 2006, has emerged as a key player in
the industry, known for its customer-centric services and innovative banking
solutions.
Conducting an investment analysis of Sunrise Bank Ltd. is crucial for several reasons.
Firstly, the banking sector is a cornerstone of the financial system, playing a vital role
in economic stability and growth. Understanding the financial health and operational
efficiency of a major bank like Sunrise Bank Ltd. can provide valuable insights into
the overall health of the banking industry in Nepal. Investors, both domestic and
international, require a thorough analysis of potential investment opportunities to
make informed decisions. By examining the financial performance, market position,
and strategic initiatives of Sunrise Bank Ltd., investors can assess the bank's potential
for growth and profitability.
The study focuses on various aspects of Sunrise Bank Ltd.'s operations. This includes
an analysis of its financial statements to evaluate profitability, liquidity, and solvency.
The bank's market position is assessed through an examination of its market share,
customer base, and competitive strategies. Additionally, the study considers
macroeconomic factors and regulatory changes that could impact the bank's
performance. Analyzing the strengths, weaknesses, opportunities, and threats (SWOT)
faced by Sunrise Bank Ltd. provides a comprehensive view of the bank's current
standing and future prospects.
This study is relevant not only to investors but also to other stakeholders, including
the bank's management, policymakers, and academics. The insights gained can aid in
strategic planning, policy formulation, and further academic research. Given the
dynamic nature of the banking sector, ongoing analysis and evaluation are essential
for maintaining a robust and resilient financial system. By focusing on Sunrise Bank
Ltd., this study contributes to a deeper understanding of the factors driving success
and challenges in the Nepalese banking industry.
1.2 Problems of Statement
Statement of the Problem Due to tough competition and lack of peace and political
instability, Nepalese banks are facing problems investing their funds in different
sectors. So the banks have been facing low liquidity transactions. On the other hand,
the demand for loans is very low. With 20 commercial banks, 17 development banks
and 17 financial companies operating in Nepal, the market seems overcrowded and
the banks are now finding a tough competition among themselves. Since the entry
barriers are not so high due to the government's liberal policy, this competition is
expected to be more intense in the near future, as there is always the possibility of a
new player entering this sector (Banking and Financial Statistics, 2080/081). Nepalese
commercial banks have not formulated their investment policy in an organized
manner. They mainly rely upon the instruction and guidelines of Nepal Rastra Bank.
They don’t have a clear view towards Investment policy. There is a lack of sound
investment policy of commercial banks. Furthermore, the implementation of policy is
not in an effective way.
Commercial banks have been facing tough competition due to limited and narrow
capital markets and investment opportunities. They are even discouraging depositors
by offering very low interest and minimum threshold balance. This will definitely
have a bad impact on the economy of a country. There is a lack of knowledge on
financial risk, interest rate risk, management risk, business risk, liquidity risk, default
risk, purchasing risk etc. Commercial banks don’t seem to invest their funds in more
profitable sectors. They are found to be more interested in investment in risky and
highly liquid sectors i.e. treasury bills, development bonds and other securities. They
keep a high liquid position and flow lower funds to the productive sectors, this results
in lower profitability to commercial banks and ignorance to the national economic
growth process. This is the main reason for the crisis in the commercial banks and in
the whole national economy as well. This study has tried to answer the following
research questions:
What is the investment trend of Sunrise Bank Ltd?
What is the relationship of Investment volume of Sunrise Bank with its profitability?
What is the investment portfolio of Sunrise Bank?
a. What is the present investment ratio of the commercial banks?

b. Are there any significant differences between the investment quantity of the
commercial banks?
c. What are the common and unique investment policies of commercial banks?
d. What are the trend and their projection regarding investment of commercial
banks?
1.4 Objectives
Investment is necessary for economic development of the country. This study

attempts to assess the role and impact of investment on economic development of the
country.
The main objectives of this study are as follows:
1. To find out the total investment of Sunrise commercial bank

2. To find out total deposit of Sunrise commercial bank
3. To find out an investment trend of commercial bank.
4. To find out the ratio of investment of selected bank.
5. To analyze investment policies of selected commercial bank.
6. To make the suggestion and recommendation regarding the investment of
commercial banks.
1.5 Significance of the Study
The need of the study is to explore the existing situation as well as future prospectus
of marketing and financial returns. The collected fund is utilized in a good manner as
investment then only good return and sustainability is possible. Return on investment
first, sustains the institution and provides handful income to the investors. The better
the investment analysis, the more valuable the company, the higher return the
shareholders etc. and vice versa. Since the different parties, shareholders, general
public and government are directly affected by the investment analysis of the financial
institutions, the researcher feels the need to study it. As it is a well-known fact that the
commercial banks can affect the economic condition of the whole country, the effort
is made to highlight the investment analysis of commercial banks expecting that the
study can bridge the gap between deposits and investment policies.
Some of the significance of this study are given below:
2. To know the investment trend about selected commercial bank.

3. To know the deposit status of selected commercial bank.
1.6 Limitations of the Study
This research study is carried targeting to fulfillment for Bachelor Degree of Business
Studies (BBS). Therefore, it may not contain all aspect of the investment policy of the
said banks. Some of other limitations of this study is as follows:
● This study has focused the latest five years data.
● Limited variable are take.
● This study is mainly based on secondary data available in NRB and concerned
banks. However, primary data were also collected through questionnaire to

know public opinion about investment.
● Resources are limited.
● The accuracy of this study report basically depends on the data provided by
the concerned banks.
1.7.Organization of the study.
The structure of study will try to analyze the study in a systematic way. The study
report has presented the systematic presentation and finding of study. The study report
will be divided in to 5 chapters. There are Introduction, Literature Review, Research
Methodology, Data Analysis and Conclusion & Recommendation.
Chapter – 2
LITERATURE REVIEW
2.1 General Review
Investment, in its broadest sense, means the sacrifice of current rupees (dollars) and
resources for the sake of future rupees (dollars) and resources. In other words, it is a
commitment of money and other resources that are expected to generate additional
money and resources in the future. Such a commitment takes place in the present and
is certain to occur but the reward comes in the future and always remains uncertain.
Therefore, every investment entails some degree of risk. Investments are made in
assets. Assets generally are two types: real assets (Land, Building, Factories etc) and
financial assets (Stock, Bonds, T-Bills etc). These two types of investment are not
competitive but complementary, highly developed institution for financial investment
greatly facilitating real investment (Bhattari, 2006).
Country’s growth rate is largely depending on investment and commercial banks are
keys for investing funds in productive works as they deal with money. They collect
funds and utilize it in a good Investment, which is not an easy task for them.
Therefore an investment of funds may be the question of life and death for the bank.
They must have effective and good investment policy to exist in this world of
competition. The problem of the investor is to select the funds whose objectives and
degree of risk taking most closely match its own situation. The one that will
accomplish for him what he would wish to do for himself if he could diversify and
manage his own holding (Bhalla, 1983). Investment is the value of that part of
economics output for any time period that takes the form of new structure, new
producers’ durable equipment and change in inventories (Joshi, 2057)
The historical review of investment analysis in commercial banks in Nepal

encompasses several key stages and factors that have shaped the evolution of this
process over time. Here’s a descriptive overview:
i. Early Years and Regulatory Framework (Pre-1990s):

Nepal’s banking sector initially focused on traditional lending and deposit-
taking, with regulatory framework overseen by NRB shaping investment
decisions, risk management, and capital adequacy requirements.
ii. Economic Liberalization and Diversification (1990s-2000s):
In the early 1990s, Nepal experienced increased private sector bank
participation and diversification of investment portfolios, leading to more
sophisticated investment analysis and a wider range of financial instruments.
iii. Technological Advancements and Risk Management (2000s-2010s):
In the 2000s and 2010, Nepalese commercial banks adopted modern systems
and software to improve investment analysis and risk management,
particularly following the 2008 financial crisis.
iv. Regulatory Changes and Basel Compliance:
Nepal’s banking sector underwent regulatory changes to comply with
international standards, including Basel Accords, which influenced investment
strategies and analysis methodologies.
v. Challenges and Opportunities in Emerging Markets:
Nepalese commercial banks navigated political instability, regulatory
constraints, currency risks, infrastructure gaps, and growth opportunities in
microfinance, renewable energy, and infrastructure development.
vi. Sustainable Finance and ESG Integration (Recent Trends):
Nepalese commercial banks are increasingly incorporating ESG factors into
their investment analysis processes, reflecting a growing awareness of
sustainability and responsible investing practices.
The historical review of investment analysis in Nepali commercial banks reveals a

shift from basic financial analysis to sophisticated methodologies, emphasizing the
need for adaptability and resilience.
2.3 Legal Review
A legal review of investment analysis conducted by commercial banks in Nepal

would primarily focus on compliance with relevant laws, regulations, and guidelines
set forth by regulatory authorities such as the Nepal Rastra Bank (NRB). Here’s a
breakdown of key legal considerations:
i. Regulatory Framework: Nepal’s commercial banks are regulated by the
NRB, adhering to laws like the Nepal Rastra Bank Act and Banking and
Financial Institutions Act.
ii. Prudential Regulations: The NRB issues prudential regulations guiding the
prudent conduct of banking operations, including investment activities,
affecting investment analysis and decision-making.
iii. Investment Guidelines: The NRB may issue specific investment guidelines
for commercial banks, outlining permissible securities, instruments, and
assets, along with any restrictions or limits imposed on certain categories.
iv. Risk Management: Legal requirements for risk management are crucial in
investment analysis, requiring banks to comply with regulations on credit,
market, liquidity, and operational risk.
v. Disclosure and Reporting: Commercial banks are mandated to disclose
investment-related information in financial statements and reports, with
regulatory authorities prescribing specific disclosure requirements for
transparency and accountability.
vi. Corporate Governance: Corporate governance in commercial banks is
crucial for investment analysis integrity, promoting sound decision-
making, risk oversight, and accountability, while safeguarding stakeholder
interests.
vii. Compliance and Enforcement: Commercial banks must adhere to legal and
regulatory requirements to avoid penalties, sanctions, or regulatory
actions. Regulatory authorities like the NRB monitor compliance and take
appropriate action.
viii. Emerging Legal Issues: Commercial banks in Nepal must stay updated on
emerging legal issues and regulatory developments, including changes in
legislation, court rulings, and regulatory pronouncements, which may
impact investment analysis.
In summary, a legal review of investment analysis by Nepali commercial banks

would ensure compliance with regulatory laws, regulations, and guidelines,
ensuring prudent and lawful investment activities.

Investment is a present sacrifice for the sake of future benefits. Therefore,
investment always involves risk. Present decision about selecting the best
alternatives should always take the future risk into consideration. The few
alternatives of investment in the past have now expanded into hundreds. Hence,
the complexity of investment has also been increasing day by day. To select the
best alternative and to construct an efficient portfolio, a wise analysis and decision
is required. Before making any decision on investment we must be well informed
about the factors, which affect investment. Investment decision related with
saving, capital formation, capital market, risk involve with it, return, inflation etc.
Conceptual Framework
Total Investment
Theories
Theories of Investment
Total Deposit
Investment Analysis
Investment Trend
2.5 Research Gap
Since so many years the study has been done on the topic investment analysis.
Most of the studies were related with secondary data. They mainly focus on the
reports based on the data available. However, such special study related to
awareness regarding investment analysis has been limited. The main gap in these
studies is the specific analysis of investment of the commercial banks. These
studies are failed to deep search the latest rend and focus in the case of banks’
investment. In its contrary here in this study, the researcher has attempted to
evaluate the primary as well as secondary data by conducting field survey, in
order to know somehow about the practical experience of investment analysis. So
this study will be fruitful to those interested persons, students, scholars,
stakeholder, Civil Society, teachers, businessmen and government for
academically as well as policy perspective.
Chapter – 3
RESEARCH METHODOLOGY
Empirical work on funds allocation and fund mobilization has identified a number of
variables that helps explain the current status of firms in the market. Researchers have
identified the importance of fund mobilization in the developing countries and the
several factors that could affect the fund mobilization such as investments, loans &
advances and asset purchased Venkatesan,(2012); Ramkrishna, (2012); Tandukar,
(2010). The study result showed that the trend of investment, loans & advances and
asset purchased is in increasing trend with the increase in funds. Further, it also
showed that the diversification of loans and investment is highly important for the
bank effective and efficient operation. Research Methodology refers to the various
sequential steps to be adopted by a researcher in studying a problem with certain
objectives in views.
In other words, research methodology describes the methods and process applied in
the entire subject of the study. This chapter refers to the research process from the
theoretical underpin to the collection and analysis of the data. The process used to
collect information and data for the purpose of making business decisions. The
methodology may include publication research, interviews, surveys and other research
techniques, and could include both present and historical information.
Since the object of research, particularly the applied research, it to arrive at a solution
for a given problem, the available data and the unknown aspects of the problem have
to be related to each other to make a solution possible.
3.1 Research Design
A research design is the arrangement of conditions for collection and analysis of data
that aims to combine relevance to the research purpose. Research design is the plan,
structure and strategy of investigations conceived so as to obtain answers to research
questions and to control variances (Kerlinker, 1996 P. 72). The research design is
descriptive and core prescriptive in this study because the historical secondary data
have been mainly deployed for analysis. “A research design is the arrangement of
conditions for collection and analysis of data in a manner that aims to combine
relevance to the research purpose with economy in procedure” Kothari, (1985).
Basically, the proposed study is mainly based on two types of research design namely
descriptive and analytical. Descriptive research design describes the general attitude
of the Nepalese funders, business environment, problems regarding the funds
mobilization aspects etc. Similarly, the analytical research design makes a thorough
analysis of gathered facts and information and critically evaluates it as well this
research will use descriptive research design. I will conduct using development
research to define research problem by formulating different hypothesis.
3.2 Population and Sample

The number of commercial bank has been increasing over the years. Prior to 1995
there were less than 10 banks. However, after 1995 the rate of increase in commercial
banks has increased tremendously. As there are numerous banks which can be taken
as population and as it is self-explanatory that the study is based on only field work, a
single unit Kumari bank will be selected for the study purpose.
3.3 Data collection
There are two types of data i.e primary and secondary data. Among them, Secondary
data have been used for this study. Secondary data has been employed in order to
analyze the relationship between fund and its explanatory variables. The study will
use secondary data. The various data required for the study will be collected from the
concerned annual report, economic indicators and official records and other.
3.4 Data Analysis tools

The report will mostly rely secondary data. As for secondary data, I will consult the
magazines and bulletins, financial statement and annual financial report of Prime
Bank, Banking & Financial statistics of Nepal Rastra Bank. The collected data will be
re-arranged and tabulated where necessary to facilitate the purpose of the study. The
conclusions of the study will be derived and suitable recommendation will be
suggested at last.
CHAPTER-IV
DATA ANALYSIS
This chapter deals with the presentation, analysis and interpretation of relevant data of
Sunrise Bank Ltd. in order to fulfill the objectives of this study. To obtain best result,
the data have been analyzed according to the research methodology as mentioned in
third chapter. The purpose of this chapter is to introduce the mechanics of data
analysis and interpretation. With the help of this analysis, efforts have been made to
highlight credit management of Laxmi Sunrise Bank as well as other cases or
problems of Laxmi Sunrise Bank can be visualized. For analysis, different types of
analytical methods and tools such as financial ratio analysis as well as statistical
analysis are used.
4.1 Demography
Deposit to assets ratio

Table no 4.1
Year Total deposit Total Assets Ratio
2075/76 9248000000 94702557675 69.5%
2076/77 89840475952 11659221365 79.5%
2077/78 105556182829 137930071016 76.85%
2078/79 131224190975 170384800288 80.54%
2079/80 29774480039 3657575517738 79.13%
From the table no. 4.1The ratio of total deposit total aassets for the fiscal year
2075/76 is 69.5% .The ratio of total demand deposit to total assets ratio for the fiscal
year 2076/77, 2077/78, 2078/79, 2079/80 are 79.5,76.85, 80.54, 79.13 resprctively.
The ratio of total deposit to total assets is increasing trend from fiscal year 2075/76,
and 2076/77. After that it is decreasing trend in 2077/78. And the ratio of total deposit
to total assets is increasing upto 2078/79 after that it is decreases in fiscal year
2079/80
From the figure no 4.1The ratio of total deposit total aassets for the fiscal year
2079/80.
4.2 Investment to total assets

Table no 4.2
Year Total Investment Total assets ratios
2075/76 82137951117 94702557675 83.73%
2076/77 96959843363 11659221365 83.16%
2077/78 123661465825 137930071016 89.65%
2078/79 152228748656 170384800288 89.34%
2079/80 314182596483 3657575517738 85.89%
Table no 4.2
From the figure no. 4.2 The ratio of total investment to total assets for
the fiscal year 2075/76 is 83.73%. the ratio of investment to assets for the
fiscal year 2076/77, 2077/78, 2078/79, 2079/80 are 83.16%, 89.65% ,
89.34%, 85.89% respectively. After that decreasing the trend from
2078/79 to 2079/80. Overall the investment to assets ratio like equal.
Table no 4.2
fiscal year 2076/77, 2077/78, 2078/79, 2079/80 are 83.16%, 89.65% ,
4.3 Cash to total Assets ratio

Table no.4.3
Fiscal year Total cash Total assets Cash ratio
2075/76 6515205127 94702557675 11.77%
2076/77 8142119186 11659221365 14.23%
2077/78 4269679618 137930071016 8.46%
2078/79 9469992338 170384800288 13.81%
2079/80 18969801242 3657575517738 21.60%
From the table no 1.3, the ratio of cash to total assets for the fiscal year 2075/2076 is
11.77%. The ratio of cash to total assets for the fiscal year 2076/77,2077/78,2078/79
and 2079/80 are 14.23%,8.43%,13.81% and 21.60% respectively. In the fiscal
year2075/76 and 2076/77 the ratio of cash to total assets is in increasing trend.After
that it is decreased in the fiscal year 2077/78. After that in the fiscal year 2078/79 and
2079/80 it is in increasing trend.
Figure no 4.3.
The ratio of cash to total assets
4.4 Investment trend (in billion)

Table no 4.4
year Total Investment
(in rs)
2075/76 82137951117
2076/77 96959843363
2077/78 123661465825
2078/79 152228748656
2079/80 314182596483
From the table no 4.4 The total investment of Sunrise bank for the fiscal year 2075/76
is Rs 82.14 billion .The total investment amount for the fiscal year 2076/77, 2077/78,
2078/79, 2079/80 are 96.96, 123.66, 152.22, 314.18 billion resprctively. The total
investment amount of the sunrise bank is consistently increasing trend from fiscal
year 2075/76, 2076/77, 2077/78, 2078/79 and fiscal year 2079/80.
CHAPTER IV CONCLUSION & RECOMMENDATION

5.1 Conclusion
Mobilization as well as canalization of saving in the productive sector is important
for the economic development of the country without inflationary pressure in the
economy. No doubt commercial banks play a crucial role for the economic
development by formulation of capital, which is key variable in the economic
development of the country. Scattered resources hold no meaning unless and until
they mobilized and utilized efficiently in some productive sectors. Empirical work on
funds allocation and fund mobilization has identified a number of variables that helps
explain the current status of firms in the market. Researchers have identified the
importance of fund mobilization in the developing countries and the several factors
that could affect the fund mobilization such as investments, loans & advances and
asset purchased. The study result showed that the trend of investment, loans &
advances and asset purchased is in increasing trend with the increase in funds.
Further, it also showed that the diversification of loans and investment is highly
important for the banks effective and efficient operation basically, the entire research
work has focused on the comparative study on fund mobilization in Nepalese
Commercial banks. Further study, Sunrise Bank was taken as sample analyzed their
fund mobilization practiced by taking five years secondary data from FY2075/76 to
2079/80. The objective of the study is to find out and analyze the fund collection and
mobilization practice in Nepalese Commercial banks. To fullfil the main objectives
following topics were researched.
The ratio of total deposit total aassets for the fiscal year 2075/76 is 69.5% .The ratio
of total demand deposit to total assets ratio for the fiscal year 2076/77, 2077/78,
2078/79, 2079/80 are 79.5,76.85, 80.54, 79.13 resprctively. The ratio of total deposit
to total assets is increasing trend from fiscal year 2075/76, and 2076/77. After that it
is decreasing trend in 2077/78. And the ratio of total deposit to total assets is
increasing upto 2078/79 after that it is decreases in fiscal year 2079/80
The ratio of total investment to total assets for the fiscal year 2075/76 is 83.73%. the
ratio of investment to assets for the fiscal year 2076/77, 2077/78, 2078/79, 2079/80
are 83.16%, 89.65% , 89.34%, 85.89% respectively. After that decreasing the trend
from 2078/79 to 2079/80. Overall the investment to assets ratio like equal.
The ratio of cash to total assets for the fiscal year 2075/2076 is 11.77%. The ratio of
cash to total assets for the fiscal year 2076/77,2077/78,2078/79 and 2079/80 are
14.23%,8.43%,13.81% and 21.60% respectively. In the fiscal year2075/76 and
2076/77 the ratio of cash to total assets is in increasing trend.After that it is decreased
in the fiscal year 2077/78. After that in the fiscal year 2078/79 and 2079/80 it is in
increasing trend.
The total investment of Sunrise bank for the fiscal year 2075/76 is Rs 82.14
billion .The total investment amount for the fiscal year 2076/77, 2077/78, 2078/79,
2079/80 are 96.96, 123.66, 152.22, 314.18 billion resprctively. The total investment
amount of the sunrise bank is consistently increasing trend from fiscal year 2075/76,
2076/77, 2077/78, 2078/79 and fiscal year 2079/80.
In the first chapter, brief introduction of liquidity management, focus of the study,
significance of the study, research objectives, brief introduction of the sampled
banks, limitation of the study and research scheme are included.
In the second chapter, theoretical review has been made. Different theories, policies,
rules and regulations about liquidity management are reviewed. During the study
different books, journals, previous studies, websites, reports are viewed and visited to
different professionals to know the liquidity management. During the literature
review, it is found that there is a few research have been made on this topic.
Research design, population and sample and analysis tools are included in the third
chapter. The data are mostly collected from secondary source for the study. The
secondary data are collected from annual papers of sampled banks, SEBON, and
Nepal RastraBank. After collecting the data from different source, it is analyzed by
using financial and statistical tools and techniques.
An attempt has been made to fulfill the objectives of the research work in chapter
four. In these chapters all the secondary are compiled, processed and tabulated as per
the necessity and figures; diagrams are also used to present it clearly.
5.2 Conclusion
The major conclusion of this study is that the investment, loans & advances and asset
purchased shows the positive correlations with funds. Among the explanatory
variables under the study loans & advances is the most dominant variable which
shows the fund has the high impact on the loans & advances sector in the context of
Nepal. From the analysis of data major conclusions have been drawn out. Some of
them are enlisted below:
→ The ratio of total deposit total aassets for the fiscal year 2075/76 is 69.5% .The
ratio of total demand deposit to total assets ratio for the fiscal year 2076/77,
2077/78, 2078/79, 2079/80 are 79.5,76.85, 80.54, 79.13 resprctively. The ratio of
total deposit to total assets is increasing trend from fiscal year 2075/76, and
2076/77. After that it is decreasing trend in 2077/78. And the ratio of total deposit
2079/80
→ The ratio of total investment to total assets for the fiscal year 2075/76 is 83.73%.
the ratio of investment to assets for the fiscal year 2076/77, 2077/78, 2078/79,
2079/80 are 83.16%, 89.65% , 89.34%, 85.89% respectively. After that decreasing
the trend from 2078/79 to 2079/80. Overall the investment to assets ratio like
equal.
→ The ratio of cash to total assets for the fiscal year 2075/2076 is 11.77%. The ratio
of cash to total assets for the fiscal year 2076/77,2077/78,2078/79 and 2079/80 are
2076/77 the ratio of cash to total assets is in increasing trend.After that it is
decreased in the fiscal year 2077/78. After that in the fiscal year 2078/79 and
BIBLIOGRAPHY
→ Basnet,P.(2020) Fund Mobilization of Commercial Banks in Nepal.

Kathmandu: An unpublished dissertation submitted to TU. Kirtipur,
Kathmandu
→ Ibrahim,F.(2012) Comparative financial performance of NBBL & HBL

Kathmandu
→ Kisha (2010).A comparative study of profitability. An Unpublished

dissertation submitted to TU. Kritipur, Kathmandu
→ Kothari, P.(1985) Onward Industry. New York: Harper and Row University Press.
→ Mohan, J. (2019) Dynamics of business in Nepal. Kathmandu : M.K Publishers
→ Paudel, A. (2020) Management Ideas in Action New Delhi: Think Inc.
→ Sapkota, A. (2022) Financial Analysis of Commercial Banks in Nepal.

Katmandu: An unpublished dissertation submitted to TU. Kirtipur, Kathmandu
→ Sapkota, S. (2021) Management: Theory and Practice.N.Y: Mcgraw Hill
→ Timilsina,A (2014). A comparative study of Fund mobilization of selected

commercial bank in Nepal. An Unpublished dissertation submitted to TU.
Kritipur, Kathmandu
→ Annual Report of Laxmi Sunrise Bank
→ Website:
→ www.google.com
→ www.goohlescoler.com
→ www.laxmisunrise.com.np
→ www.NRB.org.com.np
AN INVESTMENT ANALYSIS OF
LAXMI SUNRI BANK LTD.
Submitted by
Pinnacle Collage
T.U. Reg. No. : 7-2-455-84-2019
Symbol No:704550027
Submitted to
Kathmandu
In partial Fulfillment of the Requirements for the Degree of

Kathmandu
July, 2024
DECLARATION
I hereby declare that the project work the entitled’’ An Investment Analysis of
Laxmi Sunrise Bank Ltd.’’ submitted to the faculty of management, Tribhuvan
University, Kathmandu is an original piece of Work under the
supervisionDr.BharatPrasadbhadel
, faculty member,Nepal commerce Campus ,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.
.…………………….
Utsav Ghimire
T.U. Reg. No.7-2-455-84-2019
Symbol No. :704550027

This is to certify that Mr. Utsav Ghimire has prepared the project work report
entitled ‘’Investment analysis of Laxmi Sunrise Bank Ltd.’’ under my
supervision and guidance as per the procedure and format requirements, as partial
fulfilment of the requirements for the award of the degree of Bachelor of Business
Studies (BBS).
.....................................
Nirmal Tiwari
Pinnacle Collage
Date :
ENDORSEMENT
We hereby endorse the project work report entitled "An Investment Analysis of
Laxmi Sunrise Bank Ltd" submitted by Mr. Utsav Ghimire, Pinnacle
collage,lagankhel., partial fulfilment of the requirement for award of the Degree of
Bachelor of Business Studies (BBS) for external evaluation.
........................... ………………
Nirmal Tiwari Rishi Tiwari
Research Department Campus Chief
Pinnacle Collage Pinnacle Collage
Date: Date:
ACKNOWLEDGEMENT
I would like to express my deep gratitude to PInnacle collage for allowing to carry
out this project work in partial fulfilment of the requirements for Bachelor of
Business Studies (BBS).
I am extremely grateful and indebted my respected project work supervisor Nirmal

Tiwari ,Pinnacle collage ,who in spite of his busy schedule spared his valuable
moments to provide me constructive input, in the way of guidance, inspiration,
support and constant encouragement to complete this project work. I would like to
appreciate him for supervision and inspirations to improve the quality of project
work.
I wish to express my sincere gratitude to Campus Chief Risi Tiwari ,I would also
like to thanks all the administrative staff of Pinnacle collage,Lagankhel.
I am thankful to my family members and all my friends who provided regular

inspiration and continuous contribution for the completion of project work.
Lastly, I hearty beg sorry for my any mistake and assure to take responsibility for all
comments.
Utsav ghimire
T.U. Reg. No. 7-2-455-84-2019

TABLE OF CONTENTS
Title Page i
Declaration ii
Recommendation iii
Endorsement iv
Viva Voice Sheet v
Acknowledgement vi
List of table vii
List of figure viii
Abbreviations ix
vi
LIST OF TABLE

Table No.4. 4 Investment trend (in millions)
24
Vii

1.1 Background
1.3 Objective
1.5 Hypothesis
1.6 Significance
1.7 Limitation
1.1 General Review
1.3 Legal Review
1.7 Research Gap
3.1 Research Design
3.2 Geography
3.4 Data Collection
3.5 Data Analysis
4.1 Demography
4.2 Objective 1
4.3 Objective 2
4.4 Objective 3
4.5 Conclusion
5.1 Conclusion
5.2 Recommendation
LIST OF FIGURE

viii
ABBREVIATIONS
A.D : Anno Domini
Co. : Company
F/Y : Fiscal Year
FD : Fixed Deposit

LA : Loan & Advance
LTD : Limited
MM : Merton Miller
MPS : Market Price
Rs. : Rupees
Chapter-1
INTRODUCTION
Lubhoo is a place that is part of Mahalaxmi Municipality in Bagmati Province of

Centre Nepal. Lubhu is a suburban Newar location situated seven kilometeres east of
the kathmandu in Northern part of Lalitpur, Nepal. There are 26 Commercial bank in
Nepal. In lubhu there are 6 commercial banks. That is Ratriya Banijya Bank Limited,
Laxmi Sunrise Bank Limited, NIC Bank Limited, NMB Bank Limited Siddarth Bank
Limited and Kumari Bank Limited. My research topic “An Investment Analysis of
Laxmi Sunrise Bank” it means commercial bank of investment. Investment, in the
broader sense, means the sacrifice of current currencies and resources for the sake of
future currencies and resources. An investment is one of the decisions of finance
function that involves the decision of capital to establish commercial or industrial
venture. In other words it involves commitment of funds in to long-term assets that
would yield benefits in coming future period. Two aspects of the investment decisions
are:
● The evaluation of the prospective profitability of the investment.
● The measurement and comparison of cut-off rate against that the prospective
return of the investment could be compared.
Investment is primary factor for economic development of any country. Here

Investment refers to as using present money to get long-term benefit. Investment in
it’s broadest sense means sacrifice of current money for future money. Two different
attributes are generally involved time and risk. The sacrifice takes place in the
present. The reward of result of sacrifice comes later and magnitude is generally
uncertain. Time and risk are predominates for investment. Such as investment in
government bonds time is predominates whereas in common stock time and risk both
are important(share, Gordon, Alexander and Bailey, 2000P.187)
Investment analysis is essential for making informed investment decisions. It helps

investors evaluate the suitability of an investment opportunity for their individual
needs and goals and determine the potential risk and returns associated with that
investment opportunity. Francis (1983) state that “Investment involves making a
current commitment of funds in order to obtain an uncertain future return. It is a risk
business that demands information. To process information effectively and select the
best investment requires goal that are clear cut and realistic. In simple term
investment is making a current commitment of fund that is expected to generate
additional money in future. Nevertheless in the broadest sense it means the sacrifice
current rupees for future rupees that make place of present and certain time”.
The main source of investment is saving. A distinction is often made between

investments and saving. Saving is defined as forgone consumption; investment is
restricted to real investment of the sort that increases national output in the future.
This definition classified investment as real and financial investments. Real
investment generally involves some kind of tangible assets such as land, machinery,
or factories. Financial investment involves contacts written on pieces of paper, such as
common stock and bonds. By and large, two forms of investments are
complementary, not competitive.
Bank plays a very important role in investment by collecting saving from individual
and providing loans to individuals and industries for economic activities. Bank itself
invests in different securities of the company and industries. It helps to mobilize the
idle saving in financial activities. Banking has played a very important part in the
economic development of all the nations of the world therefore it is termed as the life
blood of modern commerce. The study mainly focuses on the investment analysis of
the commercial banks by comparing six main commercial banks of Nepal. The term
banker banking can be referred to any person, firm or company accepting deposit of
money subject to withdrawal by cheque, draft or order.
While talking about investment we cannot forget that saving is primary factor for
investment. Had there been no saving none of the investment can be expected. So
saving is the backbone of investment. Saving is needed to finance capital investment
to increase and maintain the productive capacity of the country. It is commonly
known fact that an investment is possible when there is adequate saving. If all the
income and saving are consumed for basic needs; then there is no saving, neither
existence of investment. Therefore, saving and investment are interrelated.
Financial institutions play an important role to develop the business activities by

collecting the public money. Financial institutions involve commercial banks, saving
and loan associations, credit unions pension fund and insurance companies. Especially
commercial banks significant role for development of financial activities. They
render various services to their customers facilitating their economic and social life.
They not only collect idle money from public but also provide loan to investors, who
are in need of fund. In addition they invest money in different securities.
Nepal is considered much liberal as banks and finance institution are opened for
foreign investment for quite a long time. As a result, the country now has 20
commercial banks which is a lot of improvement in the banking sectors. Most of the
commercial banks in Nepal are joint venture with a foreign bank. According to some
analyst the withdrawal of foreigners as the result of some anomalies in the Nepali
banking sector irrespective of what the withdrawing foreign bank would say officially
to the Nepali authorities of the general public.
instability, Nepalese banks are facing problem to invest their funds in different
sectors. So the banks have been facing low liquidity transaction. In other side the
demand of loan is very low. With 20 commercial banks, 17 development banks and
17 financial companies operating in Nepal, the market seems overcrowded and the
banks are now finding a tough competition among themselves. Since the entry
barriers are not so high due to the governments liberal policy, this competition is
new player entering this sector (Banking and Financial Statistic, 2080/081). Nepalese
They don’t have clear view towards Investment policy. There is a lack of sound
investment policy of commercial bank. Furthermore, the implementation of policy is
capital market and investment opportunities. They are even discouraging depositors
make bad impact on economy of a country. There is lack of knowledge on financial
risk, interest rate risk, management risk business risk, liquidity risk, default risk,
purchasing risk etc. Commercial banks don’t seem to invest their funds in more
profitable sector. They are found to be more interested in investment in risky and
highly liquid sector i.e. treasury bills development bonds and other securities. They
keep high liquid position and flow lower funds to the productive sectors, this result
into lower profitability to commercial banks and ignorance to the national economic
growth process. This is the main reason for crisis in the commercial banks and in the
whole national economy as well. This study has tried to answer the following research
questions:

commercial banks?
banks?
1.4 Objectives

country.

commercial banks.


Chapter – 2
LITERATURE REVIEW
2.1 General Review



2.3 Legal Review


interests.
appropriate action.

Total Investment
Theories
Theories of Investment
Total Deposit
Investment Analysis
Investment Trend
2.5 Research Gap

Chapter – 3
3.1 Research Design
3.3 Data collection


suggested at last.
CHAPTER-IV
DATA ANALYSIS
analysis are used.
4.1 Demography

Table no 4.1
2075/76 9248000000 94702557675 69.5%
2076/77 89840475952 11659221365 79.5%
2077/78 105556182829 137930071016 76.85%
2078/79 131224190975 170384800288 80.54%
2079/80 29774480039 3657575517738 79.13%
2079/80
2079/80.

Table no 4.2
2075/76 82137951117 94702557675 83.73%
2076/77 96959843363 11659221365 83.16%
2077/78 123661465825 137930071016 89.65%
2078/79 152228748656 170384800288 89.34%
2079/80 314182596483 3657575517738 85.89%
Table no 4.2
fiscal year 2076/77, 2077/78, 2078/79, 2079/80 are 83.16%, 89.65% ,
Table no 4.2
fiscal year 2076/77, 2077/78, 2078/79, 2079/80 are 83.16%, 89.65% ,

Table no.4.3
2075/76 6515205127 94702557675 11.77%
2076/77 8142119186 11659221365 14.23%
2077/78 4269679618 137930071016 8.46%
2078/79 9469992338 170384800288 13.81%
2079/80 18969801242 3657575517738 21.60%
Figure no 4.3.

Table no 4.4
(in rs)
2075/76 82137951117
2076/77 96959843363
2077/78 123661465825
2078/79 152228748656
2079/80 314182596483

5.1 Conclusion
increasing trend.
2076/77, 2077/78, 2078/79 and fiscal year 2079/80.
5.2 Conclusion
2079/80
equal.
BIBLIOGRAPHY

Kathmandu

Kathmandu



Kritipur, Kathmandu
→ Website:
→ www.google.com
LAXMI SUNRI BANK LTD.
Submitted by
Pinnacle Collage
T.U. Reg. No. : 7-2-455-84-2019
Symbol No:704550027
Submitted to
Kathmandu
In partial Fulfillment of the Requirements for the Degree of

Kathmandu
July, 2024
DECLARATION
I hereby declare that the project work the entitled’’ An Investment Analysis of Laxmi
Sunrise Bank Ltd.’’ submitted to the faculty of management, Tribhuvan University,
Kathmandu is an original piece of Work under the supervisionDr.BharatPrasadbhadel
, faculty member,Nepal commerce Campus ,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.
.…………………….
Utsav Ghimire
T.U. Reg. No.7-2-455-84-2019
Symbol No. :704550027

This is to certify that Mr. Utsav Ghimire has prepared the project work report entitled
‘’Investment analysis of Laxmi Sunrise Bank Ltd.’’ under my supervision and guidance as
per the procedure and format requirements, as partial fulfilment of the requirements for the
award of the degree of Bachelor of Business Studies (BBS).
.....................................
Nirmal Tiwari
Pinnacle Collage
Date :
ENDORSEMENT
We hereby endorse the project work report entitled "An Investment Analysis of Laxmi
Sunrise Bank Ltd" submitted by Mr. Utsav ghimire Pinnacle Collage, partial fulfillment of
the requirement for award of the Degree of Bachelor of Business Studies (BBS) for external
evaluation.
........................... ………………
Nirmal Tiwari Risi Tiwari
Research Department Collage Chief
Pinnacle Collage Pinnacle Collage
Date…………….. Date:............
ACKNOWLEDGEMENT
I would like to express my deep gratitude to for allowing to car Pinnacle Collage out this
project work in partial fulfilment of the requirements for Bachelor of Business Studies (BBS).
I am extremely grateful and indebted my respected project work supervisor

(...............)Pinnacle Collage ,who in spite of his busy schedule spared his valuable moments
to provide me constructive input, in the way of guidance, inspiration, support and constant
encouragement to complete this project work. I would like to appreciate him for supervision
and inspirations to improve the quality of project work.
I wish to express my sincere gratitude to Campus Chief Mr. Risi Tiwari,I would also like to
thanks all the administrative staff of Pinnacle Collage,Lagankhel.
I am thankful to my family members and all my friends who provided regular inspiration and
continuous contribution for the completion of project work.
Lastly, I hearty beg sorry for my any mistake and assure to take responsibility for all
comments.
Utsav ghimire
T.U. Reg. No. 7-2-455-84-2019

TABLE OF CONTENTS
Title Page i
Declaration ii
Recommendation iii
Endorsement iv
Viva Voice Sheet v
Acknowledgement vi
List of table vii
List of figure viii
Abbreviations ix
vi
LIST OF TABLE

Table No.4. 4 Investment trend (in millions)
24
Vii

1.1 Background
1.3 Objective
1.5 Hypothesis
1.6 Significance
1.7 Limitation
1.1 General Review
1.3 Legal Review
1.7 Research Gap
3.1 Research Design
3.2 Geography
3.4 Data Collection
3.5 Data Analysis
4.1 Demography
4.2 Objective 1
4.3 Objective 2
4.4 Objective 3
4.5 Conclusion
5.1 Conclusion
5.2 Recommendation
LIST OF FIGURE

viii
ABBREVIATIONS
A.D : Anno Domini
Co. : Company
F/Y : Fiscal Year
FD : Fixed Deposit

LA : Loan & Advance
LTD : Limited
MM : Merton Miller
MPS : Market Price
Rs. : Rupees
Chapter-1
INTRODUCTION
Lubhoo is a place that is part of Mahalaxmi Municipality in Bagmati Province of

Centre Nepal. Lubhu is a suburban Newar location situated seven kilometeres east of
the kathmandu in Northern part of Lalitpur, Nepal. There are 26 Commercial bank in
Nepal. In lubhu there are 6 commercial banks. That is Ratriya Banijya Bank Limited,
Laxmi Sunrise Bank Limited, NIC Bank Limited, NMB Bank Limited Siddarth Bank
Limited and Kumari Bank Limited. My research topic “An Investment Analysis of
Laxmi Sunrise Bank” it means commercial bank of investment. Investment, in the
broader sense, means the sacrifice of current currencies and resources for the sake of
future currencies and resources. An investment is one of the decisions of finance
function that involves the decision of capital to establish commercial or industrial
venture. In other words it involves commitment of funds in to long-term assets that
would yield benefits in coming future period. Two aspects of the investment decisions
are:
● The evaluation of the prospective profitability of the investment.
● The measurement and comparison of cut-off rate against that the prospective
return of the investment could be compared.
Investment is primary factor for economic development of any country. Here

Investment refers to as using present money to get long-term benefit. Investment in
it’s broadest sense means sacrifice of current money for future money. Two different
attributes are generally involved time and risk. The sacrifice takes place in the
present. The reward of result of sacrifice comes later and magnitude is generally
uncertain. Time and risk are predominates for investment. Such as investment in
government bonds time is predominates whereas in common stock time and risk both
are important(share, Gordon, Alexander and Bailey, 2000P.187)
Investment analysis is essential for making informed investment decisions. It helps

investors evaluate the suitability of an investment opportunity for their individual
needs and goals and determine the potential risk and returns associated with that
investment opportunity. Francis (1983) state that “Investment involves making a
current commitment of funds in order to obtain an uncertain future return. It is a risk
business that demands information. To process information effectively and select the
best investment requires goal that are clear cut and realistic. In simple term
investment is making a current commitment of fund that is expected to generate
additional money in future. Nevertheless in the broadest sense it means the sacrifice
current rupees for future rupees that make place of present and certain time”.
The main source of investment is saving. A distinction is often made between

investments and saving. Saving is defined as forgone consumption; investment is
restricted to real investment of the sort that increases national output in the future.
This definition classified investment as real and financial investments. Real
investment generally involves some kind of tangible assets such as land, machinery,
or factories. Financial investment involves contacts written on pieces of paper, such as
common stock and bonds. By and large, two forms of investments are
complementary, not competitive.
Bank plays a very important role in investment by collecting saving from individual
and providing loans to individuals and industries for economic activities. Bank itself
invests in different securities of the company and industries. It helps to mobilize the
idle saving in financial activities. Banking has played a very important part in the
economic development of all the nations of the world therefore it is termed as the life
blood of modern commerce. The study mainly focuses on the investment analysis of
the commercial banks by comparing six main commercial banks of Nepal. The term
banker banking can be referred to any person, firm or company accepting deposit of
money subject to withdrawal by cheque, draft or order.
While talking about investment we cannot forget that saving is primary factor for
investment. Had there been no saving none of the investment can be expected. So
saving is the backbone of investment. Saving is needed to finance capital investment
to increase and maintain the productive capacity of the country. It is commonly
known fact that an investment is possible when there is adequate saving. If all the
income and saving are consumed for basic needs; then there is no saving, neither
existence of investment. Therefore, saving and investment are interrelated.
Financial institutions play an important role to develop the business activities by

collecting the public money. Financial institutions involve commercial banks, saving
and loan associations, credit unions pension fund and insurance companies. Especially
commercial banks significant role for development of financial activities. They
render various services to their customers facilitating their economic and social life.
They not only collect idle money from public but also provide loan to investors, who
are in need of fund. In addition they invest money in different securities.
Nepal is considered much liberal as banks and finance institution are opened for
foreign investment for quite a long time. As a result, the country now has 20
commercial banks which is a lot of improvement in the banking sectors. Most of the
commercial banks in Nepal are joint venture with a foreign bank. According to some
analyst the withdrawal of foreigners as the result of some anomalies in the Nepali
banking sector irrespective of what the withdrawing foreign bank would say officially
to the Nepali authorities of the general public.
instability, Nepalese banks are facing problem to invest their funds in different
sectors. So the banks have been facing low liquidity transaction. In other side the
demand of loan is very low. With 20 commercial banks, 17 development banks and
17 financial companies operating in Nepal, the market seems overcrowded and the
banks are now finding a tough competition among themselves. Since the entry
barriers are not so high due to the governments liberal policy, this competition is
new player entering this sector (Banking and Financial Statistic, 2080/081). Nepalese
They don’t have clear view towards Investment policy. There is a lack of sound
investment policy of commercial bank. Furthermore, the implementation of policy is
capital market and investment opportunities. They are even discouraging depositors
make bad impact on economy of a country. There is lack of knowledge on financial
risk, interest rate risk, management risk business risk, liquidity risk, default risk,
purchasing risk etc. Commercial banks don’t seem to invest their funds in more
profitable sector. They are found to be more interested in investment in risky and
highly liquid sector i.e. treasury bills development bonds and other securities. They
keep high liquid position and flow lower funds to the productive sectors, this result
into lower profitability to commercial banks and ignorance to the national economic
growth process. This is the main reason for crisis in the commercial banks and in the
whole national economy as well. This study has tried to answer the following research
questions:

commercial banks?
banks?
1.4 Objectives

country.

commercial banks.


Chapter – 2
LITERATURE REVIEW
2.1 General Review



2.3 Legal Review


interests.
appropriate action.

Total Investment
Theories
Investment
Theories of Investment Total Deposit
Analysis
Investment Trend
2.5 Research Gap

Chapter – 3
3.1 Research Design
3.3 Data collection


suggested at last.
CHAPTER-IV
DATA ANALYSIS
analysis are used.
4.1 Demography

Table no 4.1
2075/76 9248000000 94702557675 69.5%
2076/77 89840475952 11659221365 79.5%
2077/78 105556182829 137930071016 76.85%
2078/79 131224190975 170384800288 80.54%
2079/80 29774480039 3657575517738 79.13%
2079/80
2079/80.

Table no 4.2
2075/76 82137951117 94702557675 83.73%
2076/77 96959843363 11659221365 83.16%
2077/78 123661465825 137930071016 89.65%
2078/79 152228748656 170384800288 89.34%
2079/80 314182596483 3657575517738 85.89%
Table no 4.2
fiscal year 2076/77, 2077/78, 2078/79, 2079/80 are 83.16%, 89.65% ,
Table no 4.2
fiscal year 2076/77, 2077/78, 2078/79, 2079/80 are 83.16%, 89.65% ,

Table no.4.3
2075/76 6515205127 94702557675 11.77%
2076/77 8142119186 11659221365 14.23%
2077/78 4269679618 137930071016 8.46%
2078/79 9469992338 170384800288 13.81%
2079/80 18969801242 3657575517738 21.60%
Figure no 4.3.

Table no 4.4
(in rs)
2075/76 82137951117
2076/77 96959843363
2077/78 123661465825
2078/79 152228748656
2079/80 314182596483

5.1 Conclusion
increasing trend.
2076/77, 2077/78, 2078/79 and fiscal year 2079/80.
5.2 Conclusion
2079/80
equal.
BIBLIOGRAPHY

Kathmandu

Kathmandu



Kritipur, Kathmandu
→ Website:
→ www.google.com

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AN INVESTMENT ANALYSIS OF

SUNRI BANK LTD.

A Project Work Report

In partial Fulfilment of the Requirements for the Degree of

T.U. Reg. No.7-2-254-2-2019

Symbol No. :704550027

I, therefore, recommend the project work report for evaluation.

Viva Voice Sheet v

Table of content vii

List of table vii

List of figure viii

Table Topic Page No.

Table No. 4.2 Investment to Total assets Ratio 22

Table No.4. 3 Cash to total Assets ratio 23

Table No.4. 4 Investment trend (in millions) 24

Chapter-5 Conclusion and Recommendation

Figure Topic Page No.

Figure No. 2.2 Investment to Total assets Ratio

Figure No.2. 3 Cash to total Assets ratio

Figure No.2. 4 Investment trend (in million)

A.D : Anno Domini

ACH : Automated Clearing House

ATM : Automated Teller Machine

DPS : Dividend Per Share

F/Y : Fiscal Year

FVIFA : Future Value Interest Factor of Annuity

HBL : Himalayan Bank Limited

LA : Loan & Advance

MPS : Market Price

NEPSE : Nepal Stock Exchange

NII : Net Interest Income

LSBL : Laxmi Sunrise Bank Limited

NRB : Nepal Rastra Bank

SCBNL : Standard Chartered Bank Nepal Limited

WACC : Weighted Average Cost of Capital

1.1 Background of the study

1.2 Problems of Statement

What is the investment trend of Sunrise Bank Ltd?

What is the investment portfolio of Sunrise Bank?

a. What is the present investment ratio of the commercial banks?

Investment is necessary for economic development of the country. This study

The main objectives of this study are as follows:

1. To find out the total investment of Sunrise commercial bank

Some of the significance of this study are given below:

2. To know the investment trend about selected commercial bank.

● This study has focused the latest five years data.

● Limited variable are take.

banks. However, primary data were also collected through questionnaire to

● Resources are limited.

the concerned banks.

1.7.Organization of the study.

2.1 General Review

2.2 Historical Review

The historical review of investment analysis in commercial banks in Nepal

i. Early Years and Regulatory Framework (Pre-1990s):

The historical review of investment analysis in Nepali commercial banks reveals a

2.3 Legal Review

A legal review of investment analysis conducted by commercial banks in Nepal

In summary, a legal review of investment analysis by Nepali commercial banks

2.4 Conceptual Framework

2.5 Research Gap

3.1 Research Design

3.2 Population and Sample

3.4 Data Analysis tools