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INTRODUCTION
1.1 Background of the study
analysis is a quantitative method of gaining insight into a company's liquidity,
operational efficiency, and profitability by studying it's financial statements
such as the balance sheet and income statement. Ratio analysis is a
cornerstone of fundamental equity analysis. Ratio Ratio analysis can mark
how a company is performing overtime, while comparing a company to
another within the same industry or sector. While ratios offer useful insight
into a company, they should be paired with other metrics, to obtain a broader
picture of company's financial health. Investors and analysts employ ratio
analysis to evaluate the financial health of companies by scrutinizing past and
current financial statements. Comparative data can demonstrate how a
company is performing overtime and can be used to estimate likely future
performance. Ratios are comparison points for companies.

1.2 Profile of the organization

Nepal Bangladesh Bank Ltd. (NB Bank) is a leading 'A' class commercial
Bank licensed by Nepal Rastra Bank. NB Bank was incorporated in Nepal and
registered with office of company Registrar(50-050/051),Dated January 14,
1994) as a public company limited by shares. NB Bank started its banking
operation from 6th June, 1994.NB Bank was established as a joint venture bank
with IFIC Bank Ltd. Bangladesh. Shares of the bank are listed in Nepal stock
exchange Ltd. since 1995.

Nepal Bangladesh Bank has been started with the following capital structure;
Authorized capital 240000@rs 100 each rs.24,00,00,000, Issue capital
1200000@rs 100 each rs. 12,00,00,000, and paid up capital 1200000@rs 50
rs.6,00,00,000. The ownership of bank is Nepali local investor 60% and
foreign investor i:e.IFIC Bank Bangladesh 40% at starting period. The Bank
has 806 No.s employee and share is traded at Rs. 214 in end of FY 2074/75.
The bank has 81 branches, 60 ATM, 5 Nos of Branch less Banking and 6 No.s
of extension counter throughout the country.

Research Questions
 What is the ratio analysis of NBB?
 How is the liquidity position of NBB Ltd?
 How a company manages ratio analysis?
1.3 Objectives of the study
 To analyze ratio analysis of NBB.
 To explore the liquidity position of NBB.
 To explore how a company manages its ratio analysis.

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1.4 Rationale of the study

 This study is useful to the interested parties of Nepal Bangladesh Bank
limited to understand the ratio analysis. This study can be a source of a
references as well as foundations of their study.
 Those who are seeking for the information related to ratio analysis can
be benefited from this study.
 To make decision about Nepal Bangladesh Bank limited after studying
ratio analysis.
 Researchers can use as a secondary data for research.
 This study helps in investment for the investors after knowing about
Nepal Bangladesh Bank limited's ratio analysis.
1.5 Research methods
Research methods is the specific procedure or techniques used to identify,
select, process, and analyze information about a topic. In research paper, the
methods section allows the reader to critically evaluate study's overall validity
and reliability.
1.5.1 Research design
Research design is the framework of research methods and techniques chosen
by a researcher. The design allows researchers to hone in an research methods
that are suitable for the subject matter and set up their studies up for success.
The design phase of a study determines which tools to use and how they are
used.
The design of a research topic explains the type of research (experimental
survey, co-relational, semi- experimental, problem, descriptive case-study).
Different research designs are used to search the answer of the different
research questions. Thus, entire research designs are classified in the following
categories:

1.5.1.1 Descriptive Research Design

A research design that is developed with aim of studying the subject of research in
detail and explains the facts and characteristics related to research problems is known
as descriptive research design. It collects and presents the facts and figures in a certain
situation. The goal of a descriptive study is to describe relevant aspects of the factors
of interest to the researcher from an individual, organization or other perspective.

1.5.1.2 Casual Comparative research design

A research design that is used to show the causes of the problem is known
as casual comparative research design. It observes the position of causes
that impact on certain works. It explains the relationship of two variables

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after the study of the problem. It is also known as Ex-post facto research
design.
1.5.1.3 Experimental Research
The research controls all other variables and conducts research considering
to a few variables through observation or experiment is known as
experimental research. In this research, variables under study are free and
all other variables are controlled.
This research is based on descriptive research design.
1.5.2 Population and Sample
In research, a population is not a demographic population but the entire
collection of all observation of interest i:e. people, objects, or events as defines
by the researcher is known as population. All the 28 commercial banks of
Nepal are considered the population of this study.

If a researcher wants to study the performance of Nepalese commercial banks,

he/she wiil not consider all banks for the study but take few banks which
covers the entire characteristics of all commercial banks. Those few banks are
known as sample. Only the Nepal Bangladesh Bank is considered the sample
here in our study.
1.5.3 Types and sources of data
A data source is the location where data is being used originates from. The
sources of data are classified based on the types of data. In this regard, one can
categorize sources of data into two parts:

 Primary sources of data

 Secondary sources of data

Primary sources of data

Data developed by the researcher himself for the purpose of present research is
known as primary data. Primary data is used when secondary data is not
available or secondary data only is not sufficient to draw conclusions or to
know the attitude and behavior of individual and groups. Primary sources of
data is collected through interview, questionnaire and observation.

Secondary sources of data

Information gathered by someone other than the researcher associated with the
current study is known as secondary data. In every type of research, primary
data cannot be used. Primary data collection is impossible when there is lack
of time and resources. Therefore, researcher uses secondary data. A researcher
can obtain secondary data from various sources like; Governments reports and
publication, books, articles etc.

1.5.4 Tools and techniques of analysis

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Financial tools
Financial tools are one of the most efficient ways that can be used for ensuring
good profit from your investments. Following tools are used for data analysis:
Debt-equity ratio
Debt-equity ratio =liabilities/equity
Current ratio
Current ratio= current assets/current liabilities
Interest Coverage ratio
Interest coverage ratio= EBIT/interest expenses
Statistical tools
Statistical tools help to use the proper methods to collect data, employ the
correct analyses, and effectively present the results. Following are the
statistical tools used for data analysis:
Mean
∑ xi
Mean()= n
Standard deviation()
Standard deviation= √ ❑ ∑ ( xi−x )
1.6 Limitation of the study
This study is conducted for the partial fulfillment of Bachelor of Business
Studies. So, it possesses some limitations of its own kind. Lots of limitations
have been faced while preparing this research report. Some of them are listed
below:
 The study is based only in secondary data. So it may contain reporting
error.
 There are in total 28 commercial banks in country but researcher takes
only one of them. The sample bank is NBB.
 The study is made within limited time frame, limited data, and with
lack of research experiment.
 The study covers the past and present state of the Nepal Bangladesh
Bank Ltd and will not make any forecast of future.

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BIBLIOGRAPHY

Adhikari, D.R(2020)Business Research Methods, Kathmandu: Asmita Publication.

Pandey, D.L(2020)Business Research Methods, Kathmandu: Asmita Publication.

Paudel, R.B(2019)Financial Markets and Institutions, Kathmandu: Asmita

Publication.

Baral, K.J(2019)Financial Markets and Institutions, Kathmandu: Asmita Publication.

Joshi, P.R(2019)Financial Markets and Institutions, Kathmandu: Asmita Publicatiion.

Gautam, R.R(2019)Financial Markets and Institutions, Kathmandu: Asmita

Publication.

Internet source: www.nbbl.np