Ajen Proposal

A PROPOSAL ON ANALYSIS OF FINANCIAL STATEMENT
OF NIC Asia Bank Limited
Submitted By:
Bijeta Maharjan
T.U. Regd. No.:
Campus Roll No.=
Group: “Finance”
Submitted To
College Name
Faculty of Management
Tribhuvan University
Kathmandu, Nepal
In Partial fulfillment of the requirements for the degree

of BACHELOR OF BUSINESS STUDIES (BBS)
Kathmandu, Nepal
Febuary, 2024
1
A PROPOSAL ON ANALYSIS OF FINANCIAL STATEMENT OF
NIC Asia Bank Limited
1. Introduction
Financial performance analysis is the process of analyzing a company's financial

statements for decision-making purposes and to understand the overall health of an
organization. Financial statements record financial data, which must be evaluated through
financial performance analysis to become more useful to investors, shareholders,
managers, and other interested parties. It is the method of evaluating past, present, and
projected performance of a company. Analysts track performance measures across
financial statements using several different methods for financial performance analysis,
including vertical, horizontal, and ratio analysis. It helps to analyze whether an entity is
stable, solvent, liquid or profitable enough to warrant a monetary investment. It is
therefore essential to analyze the financial statement to know the actual financial
performance and financial position of the organization.
NIC Asia Bank is one of the leading commercial banks of Nepal with the mission To be
a Bank of 1st Choice for all the stakeholders.. NIC ASIA Bank was founded as Nepal
Industrial and Commercial Bank on 21 July 1998. It was renamed NIC ASIA Bank on 30
June 2013 after it merged with Bank of Asia. It’s slogan is “Bank pani sathi pani, ramro
pani hamro pani”. It’s present shareholding pattern is promoters holding 51% of the
shares while 49% is held by the general public.. It was incorporated with a vision To
ensure the creation of optimum values for all the stakeholders. he Bank has 359 branches,
103 extension counters, 81 branchless banking, and 473 ATMs across Nepal with a
network covering all major financial centers of the country. The Bank has also added a
Microfinance Company, "NIC ASIA Laghubitta Bittiya Sanstha Ltd." in its ecosystem.
2
2. Scope Of Study
NIC Asia Bank established with the slogan of “ Bank pani sathi pani, ramro pani hamro
pani”, aims to be be a Bank of 1st Choice for all the stakeholders . For this purpose, analysis
of financial performance is must. The analysis of financial performance manifest various aspects
such as stability, profitability, solvency and liquidity position of the organization. Information
regarding such aspects of financial statement not only facilitates the users but also the bank itself
to identify its strength and weakness. This will help the bank to formulate plans and policies for
better operation in future. Therefore, this report will portray the analysis of financial statement of
NIC Asia Bank.
Analysts track performance measures across financial statements using several different methods
for financial performance analysis, including vertical, horizontal, and ratio analysis. This
research focuses on analysis of financial statement using various tools of ratio analysis.
Statistical and financial ratios such as liquidity ratios, profitability ratios, leverage ratios, activity
ratios as well as other relevant financial ratios will be used as data analysis procedures. This
study shall include the data from FY 2077/78 to 2079/80.
3. Statement of Problem
A statement of problem is a brief description of an issue to be addressed or a condition to be

improved upon. It aims in identifying and explaining the problem.
In present context of Nepal, commercial banks have good performance. On the basis of
profitability and productivity of commercial banks, public have confidence in their performance.
However, various environmental factors, state of economy, structure of capital and money
market, government policies, taxation policies and various internal factors have influence upon
financial performance and position of commercial banks. In these circumstances, it is highly
useful to make the study on financial statement of NIC Asia Bank.
3
Profitability position and stock prices are the general factors considered for evaluating the
financial performance of NIC Asia Bank. However, one can raise a question, “Are these the only
factors to reflect the performance of the bank?”
Thus, the main problem of the study, is to inquire into the financial performance of NIC Asia
Bank.
This study is targeted to find out answers to the following questions:
a) What is the financial performance of NIC Asia Bank?
b) Does the overall financial statement depict the financial position indicating any special
strength and weakness of the Bank?
c) Is NIC Asia Bank utilizing its assets efficiently?
d) NIC Asia Bank is considered to be operationally efficient. But how far it is efficient?
In this context, the main purpose of the study is analyzing the financial performance of the NIC
Asia Bank in terms of turnover, profitability, liquidity and efficiency in operation.
4. Objective Of the Study
It defines the purpose of this study. Simply, it helps to find out the answer to the questions stated
above. The general objective of this study is to analyze the financial statements of NIC Asia
Bank regarding the financial performance and position.
Other specific objectives are as follows:

a) To evaluate the financial position of NIC Asia Bank.
b) To analyze the financial performances through the use of appropriate financial and analytical
tools.
c) To identify the profitability position i.e. Earning per share (EPS), Dividend per share (DPS) and
Return on Asset (ROA).
d) To measure the liquidity, solvency and efficiency.
e) To determine the past, present and projected performance of the company.
4
5. Research Methodology
The research methodology is the process used to collect information and data. The methodology
may include interviews, survey, publication, research and other research techniques.
5.1 Sources of Data Collection

Data can be collected from primary sources and secondary sources. Primary data are first
hand data collected through direct involvement of researcher whereas secondary data are
second hand data which are already collected by someone else and used by researcher for
his/her study. The major data used in this project report are collected through secondary
sources.
5.2 Secondary Data:

Secondary data are those data, that has previously been gathered and can be accessed by
researchers. Data in this project are collected from published as well as unpublished sources.
Secondary data used in this project are listed below:
• Annual financial reports of NIC Asia Bank.
• Official website of NIC Asia Bank.
• News papers
• Books and articles
6. Data Presentation and Analysis Tool
Various statistical as well as financial ratios are used for analysis of data obtained in the due
course of research. The obtained data is presented, tabulated and graphed to analyze and achieve
the goal of the study. The financial ratios used for data analysis are:
 Profitability ratios
 Liquidity ratios
 Assets management ratio
5
And other financial ratios
6
Further, following tools have been used for data presentation:
 Tabulation
 Bar diagrams
 Pie-chart
7. Chapter Plan
i) Chapter one - Introduction:

It deals with the introductory part. It consists of background of study, banking scenario in Nepal,
profile of the organization, statement of the problem, objective of the study, review of literature,
methods of data collection, limitations of the study and definition of terms.
ii) Chapter two – Result and Analysis:

Chapter two deals with data presentation and analysis of result and findings. It exhibits
systematic presentation of data collected and analysis of result and findings of project work.
iii) Chapter three - Discussion and Conclusion:

Chapter three, last chapter of the study focuses on evaluating and interpreting the results
obtained. Further, it also deals with present implication of results obtained and conclusion drawn
useful for future studies.
7
8. Limitation of the study
Limitation tends to narrow the area of study. It is caused due various undeniable circumstances.
The major limitations of this study are mentioned below:
 The Research is based on records of 3 fiscal years’ analysis only i.e. from FY 2077/2078
to FY 2079/2080.
 The researcher has used only some statistical tools for presentation and analysis of data.
 Most of the data used in this study are based on secondary sources mainly official
website of NIC Asia Bank.
 The main focus is given to the quantitative aspect rather than qualitative aspect.
 The study is based on NIC Asia Bank only.
 It is only for partial fulfillment of Bachelor of Business Studies (BBS).
9. Tentative Time Frame
The required time duration to complete the proposed study is 1 month.
Bijeta Maharjan
BBS 4th year
College Name
Kathmandu, Nepal

Ajen Proposal

Uploaded by

Copyright:

Available Formats

Ajen Proposal

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ajen Proposal

Uploaded by

Copyright:

Available Formats

A PROPOSAL ON ANALYSIS OF FINANCIAL STATEMENT

OF NIC Asia Bank Limited

In Partial fulfillment of the requirements for the degree

Financial performance analysis is the process of analyzing a company's financial

A statement of problem is a brief description of an issue to be addressed or a condition to be

4. Objective Of the Study

Other specific objectives are as follows:

5.1 Sources of Data Collection

5.2 Secondary Data:

6. Data Presentation and Analysis Tool

i) Chapter one - Introduction:

ii) Chapter two – Result and Analysis:

iii) Chapter three - Discussion and Conclusion:

9. Tentative Time Frame

The required time duration to complete the proposed study is 1 month.

You might also like