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31 views

Proposal

Uploaded by

shresthanikhil078
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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STUDY OF PROFITABILITY POSITION OF

NIC ASIA BANK LIMITED

A Project Work Proposal

Submitted By:
Name: Nikhil shrestha
T.U Regd No :7-2-25-263-2016

Submitted to:
Head of Research Department
Nepal Commerce Campus

In Partial Fulfillment of the Requirements for the Degree of


BACHELOR OF BUSINESS STUDIES (BBS)

Minbhawan, Kathmandu
March, 2020
Chapter I

1.1 Introduction

Profitability is the primary goal of all business ventures. Without profitability the business will
not survive in the long run. So measuring current and past profitability and projecting future
profitability is very important.

Profitability is measured with income and expenses. Income is money generated from the
activities of the business. For example, if crops and livestock are produced and sold, income is
generated. However, money coming into the business from activities like borrowing money does
not create income. This is simply a cash transaction between the business and the lender to
generate cash for operating the business or buying assets.

Expenses are the cost of resources used up or consumed by the activities of the business. For
example, seed corn is an expense of a farm business because it is used up in the production
process. A resource such as a machine whose useful life is more than one year is used up over a
period of years. Repayment of a loan is not an expense; it is merely a cash transfer between the
business and the lender.

Profitability is measured with an “income statement”. This is essentially a listing of income and
expenses during a period of time (usually a year) for the entire business. Information File Your
Net Worth Statement includes - a simple income statement analysis. An Income Statement is
traditionally used to measure profitability of the business for the past accounting period.
However, a “pro forma income statement” measures projected profitability of the business for
the upcoming accounting period. A budget may be used when you want to project profitability
for a particular project or a portion of a business.

1.2 Profile of the organization


This study is basically focused on profitability of NIC ASIA . From above
background of the study, the following statement of problem can be stated which
are given below:

⮚ What is financial status of NIC ASIA?

⮚ What is the profitability of NICASIA with relation to ROA and ROE?

⮚ How effectively the company has utilized its assets in generating

income?

⮚ How the NICASIA been managing their position in relation to

profitability?

1.3 Objectives of study

The basic objective of the study is to analyze the profitability position of bank the
past five year and also to find out causes of high and low performance. The
objectives of study are to evaluate the profitability position of bank to achieve the
basic objectives, following specific objective are designed:

⮚ Analyze the financial statement for five financial years.

⮚ To know the Profitability position of NIC ASIA

⮚ To Know about the Profit management of NIC ASIA.


1.4 significance of study

⮚ To know the current wealth position of NicAsia Bank ltd

⮚ To show overall profitability position of Nic Asia

1.5 Review of Literature

Literature review can be just a simple summary of the sources but it


usually has an organizational pattran an combines both summary an
synthesis .

1.6 Limitation of the study

⮚ The study does not present detailed analysis of profit in Nic Asia due to lack

of time relevant data and resources

⮚ Lack of experience

⮚ The analyzed data are only conserned with Nic Asia so it represent the view

of Nic Asia and not whole commercial bank of Nepal

2.0 Organization of the study


This study, on the Profitability Position of NIC ASIA , is organized into three
chapters as follows:

Chapter I:-

This chapter briefly explains about introduction, background of the research topic,
objective of study, rational of study, literature review, significant of the study
methodology and limitation.

Chapter II:-

This chapter includes data presentation of the study, analysis of result and findings
of the result.

Chapter III:-

This chapter describes about summary and conclusion of the research of the study.
Not only the conclusion and summary but also bibliography and appendices of the
whole research of the study.

3.0 Research Methodology

It is systematic, theoretical analysis of the methods applied to field of study. It


comprises the theoretical analysis of the body of the method and principle
associated with a branch of knowledge. Typically, it encompancess concepts such
as paradigm, theoretical modes, phases and quantitative or qualitative techniques.

A methodology does not set out to provide solution – it is therefore, not the same
as a method. Instead, a methodology offers the theoretical underpinning for
understanding which method, set of methods, or (best practice) can be applied to a
specified case, for example, to calculate a specified result.
3.1 Research design

The designs to be used for the study are descriptive and analytical. Financial
statement of two different time periods as well as the position and trend of
achievement in these periods will be analyzed. In this study, we used descriptive
research design.

3.2 Nature and sources of data

There are two types of sources of data; Primary and Secondary data. For research,
secondary are basically used so this study done in using secondary sources of data.

a) Secondary data:-

Data which are originally collected but obtained from either published or
unpublished are secondary data. These data re obtained from books and internet.

⮚ Annual Report, newspaper, declarations, advertisement, notices etc. of

NICASIA.

⮚ Official websites of NICASIA and different websites related to the topic

⮚ NRB directives and circular related to Development and Commercial Banks

3.3 Selection of Enterprises


NICASIA bank Limited has been selected for the studied of research. Reason on
for choosing NIC ASIA to know about how to maximize the profit by NIC ASIA ?

3.4 Method of analysis:

In the method of analysis, we basically used secondary method of analysis. In


secondary method of analysis we used following tools in our study research:

a) Financial Tools :-
In this study, we used following financial tools for analysis of data

⮚ Return on equity

⮚ Return on asset

⮚ Return on investment

⮚ Earnings per share

b) Statistical Tools :
In this study, we used following statistical tools for analysis of data;

⮚ Mean

⮚ Standard deviation

⮚ Coefficient of variation (C.V )


BIBILOGRAPHY

“Hafstornd , Don (2009)”, Understanding Profitability (File C3-24) , published


By low State University , Washington D.C

“Howell , K.E (2013)” , Introduction to the Philosophy of Methodology , Sage


Publication , London

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