Thesis of Master Degree In Business Studies: Tribhuvan University

Proposal: Bibliography

· Annual Report of HIMALAYAN Bank Ltd.

· Annual Report of NABIL Bank Ltd.

· http://bfr.nrb.org.np/List_Banks_n_Non_Banks.php

· http://www.doanepal.gov.np

· “Banking And Financial Statistics” Mid-January 2003, Nepal Rastra Bank, and Financial Institution Department, Policy Planning Statistics and Banking promotion Division.

· Brigham, Eugene F., “Fundamentals Of Financial Management” The Dryden Press, Hinsdate, 2^nd Edition, 1980.

· Brigham, Eugene F. and Sapenski, Louis C., “Financial Management, Theory & Practice”, The Dryden press, 4 Edition, 1985.

· Deon William H. (1973), “Finance”, New York: The Dryden Press, Library Of Congress.

· Dr. Michael, V.P. “Research Methodology In Management”, Mumbai: Himalayan Publishing House.

· Chopra, Sunil, “Role Of Foreign Bank In Nepal”, Nepal Rastra Bank Samachar.

· Thapa, Govind Bahadur, “ Financial System Of Nepal”, Development Vision, Patan Multiple Campus, lalitpur, Vol 3, 1994.

· Kothari, C.R. (1992), “Research Methodology And Techniques”, New Delhi: Vikas Publication House Pvt. Ltd.

· Pant, P.R. And Wolff, M.K., “Social Science Researc And Thesis Writing”, Kathmandu Buddha Academic Enterprises, 1999.

· Thesis Submitted to TU in related Topic for various banks in Nepal.

The study has been organized into five chapters each devoted to some aspect of the study on “Comparative Study Of Financial Analysis Of HIMALAYAN Bank Ltd. And NABIL Bank Ltd.” The title of these chapters are as follows :

Chapter – 1 : Introduction

Chapter – 2 : Review Of Literature

Chapter – 3 : Research Methodology

Chapter – 4 : Presentation & Analysis Of Data

Chapter – 5 : Summary, conclusion & Recommendations

The rational behind this kind of organization is to follow a simple research methodology approach. The content of each of the chapters of this study are briefly mentioned below.

Chapter – 1 Contains the introductory part of the study. As already mentioned, this chapter describe the major issues to be investigate along with the general background and objective of the study.

Chapter – 2 Confirm the review of literature of related studies in journals (literature) and review of related studies in Nepal with reference to previous thesis and policies of the government.

Chapter – 3 Describe the research methodology employed in the study. It includes research design, nature and sources of data, selection of enterprises, method of analysis, statistical and financial tools used.

Chapter – 4 Deals with the presented and analysis of the data. It consists of analysis of relevant rations to evaluate the financial position of both banks followed by their interpretation. The cash flow analysis, hypothesis testing of different ratios used in the study and trend analysis of different measures are calculated and interpreted. This chapter also presents the major finding of the research.

Chapter – 5 Contains summary & conclusions of the study. It also offers recommendations on the basis of findings.

Proposal: Limitation Of The Study

This research explains and analyzes the subject matter with the help of well known or already established analytical method and techniques, therefore as a conclusion oriented research. It does not much concern with the fundamental and decision oriented research. This research depends upon only five – year annual report of both banks as well as some primary data of the both banks.

Following are the limitation of this study :-

Ø It only focuses on HIMALAYAN Bank Ltd and NABIL Bank Ltd. Covering the period of five years (i.e. 2010/2011 to 2014/2015)

Ø The whole study is based on secondary data such as financial statement and financial report of both banks.

Ø This study is concerned with the financial performance of both banks.

Ø The data published from various sources differ, they do not tally total in many places is not equal. However in this research, report of HIMALAYAN Bank Ltd and NABIL Bank Ltd Are taken valid source of data.

Ø Time and resource constraint may limit the area cover by study.

Proposal: Importance Of The Study

Banking sector has been one of the major contributors to national providing variety of disbursement to different sectors, enabling to boost the GDP. Hence, the performance of this sector needs to be above the par to any other field. The financial performance of commercial banking sector should be very much capable in enhancing the capital market as well. This research is a conclusion oriented research. This thesis will help to know the financial performance of HIMALAYAN Bank Ltd and NABIL Bank Ltd. This study will also helpful as a literature for the future study about the relating topics. Apart from this, the institution and firm can allow the suggestion of this study to make their policy and strategy more practical and scientific.

The accounting figure presented in the financial statements do not convey any meaningful understanding, it need to be analyzed and interpreted to know the financial performance of the banks. This study will be beneficial to different parties concerned with two banks as well as other interested parties.

Especially it will be beneficial to,

Ø Management of two banks.

Ø Lenders and borrowers of these banks.

Ø Policy maker of these banks.

Ø Concerned parties and general interested parties of the banks.

Ø Customers of these banks.

Proposal: Objective Of The Study

The main objective of the study is to analyze, examine and interpret the financial position of HIMALAYAN Bank Limited and NABIL Bank Limited with the help of ratio analysis and other relevant financial and statistical tools. In addition, the study also tries to evaluate the efficiency and progress of both joint venture banks comparatively.

For above purpose the following points will be considered in the research :-

Ø To calculate the relevant financial position of HIMALAYAN Bank Ltd and NABIL Bank Ltd.

Ø To examine the financial performance of the banks.

Ø To know the investment position of sample banks.

Ø To provide suggestion for both banks on the basis of findings.

Proposal: Statement Of The Problem

There are various joint venture banks operating their activities in the different part of the country. Banks are not to be considered merely as dealers of money but also the leaders in development. They are not only the store house of country’s wealth but also the reservoirs necessary for economic development. After Government of Nepal adopted the open, liberal and market oriented economic policy. The establishments of private joint venture banks have continued in response to this. Consequently, they are facing tough competition. The financial sector may not be enough from them to meet the growing the resources need to the economy as expected before. Why the financial institution of Nepal is performing well and effectiveness of these institutions should be analyzed. The study will seek the reasonable reasons on the following concentration areas of HIMALAYAN Bank Ltd and NABIL Bank Ltd,

Ø Identifying the liquidity, profitability and capital structure ratio and market position of joint venture banks.

Ø Identifying the growth ratio level of joint venture banks in term of net profit and earning.

Ø Identifying the relationship between debt and return of joint venture banks.

Ø Identifying the relationship between deposit and investment of the joint venture banks.

Ø Identifying the relationship between organization and its stakeholders.

Ø Identifying how efficiently do the banks use their capital?

Ø Identifying which bank performing better and efficiently?

In conclusion, the study aims to find out the areas of differences between HIMALAYAN BANK Ltd and NABIL Bank Ltd in terms of deposit collection, resources mobilization, liquidity and others. Fact efficient financial performance is helped to measure the weakness and strength of the bank. This study will predict their strength and weakness, fluctuations of ratios, trend and correlation between relevant variables. A strong financial performance of joint venture can contribute to national economy and also attract foreign investor to invest his or her investable fund in the financial sector. This may be exemplary lesson to the newcomer joint venture bank. Therefore financial statement of the bank should be fully examined to find whether the banks are economically and financially strong or not.

Proposal: Focus Of The Study

This study confines comparative analysis of financial performance between two joint venture banks namely, HIMALAYAN Bank Limited and NABIL Bank Limited. Financial analysis covers financial ratio analysis, portfolio trend analysis of two joint venture bank. Both of these banks are working under the same condition and problems, opportunities for the banks and threats to the firm are also similar. Thus, this attempt would be relevant to make a comparative analysis of these two banks. Main focus of this study will be on aspect such as liquidity, profitability activity, income and expenditure patterns. The trend analysis is as indication about the future operation. “Financial analysis is the process of determining the significant operating and financial characteristic of a firm from various accounting data and financial statement. Financial ratio analysis is a widely use tool of financial analysis and its performance. The goal of such analysis is to determine the efficiency and the performance of the firm’s management as reflected in the financial records and report” (John J Hampton, Financial Decision Making, July 1983, p121)

This study focuses on :

Ø Income and expenditure analysis.

Ø Correlation analysis.

Ø Trend analysis.

Financial ratio analysis identifies the financial strength and weakness of both joint venture banks with the help of basic financial statement namely profit and loss account, balance sheet and cash flow statement. It helps to measure the banks liquidity, leverage, activity and profitability ratio in rational way.