A THESIS PROPOSAL

on

Risk and Return Analysis

of
NIC ASIA BANK LIMITED

SUBMITED TO

FAUCLTY OF MANAGEMENT TRIVHUVAN UNUVERSITY

NEPAL

By

ARJUN MAHATO
APPLIED COLLEGE OF MANAGEMENT & EDUCATION
BIRATNAGAR

ROLL NO. : 3
TU REGD. NO. : 7-2-0934-0006-2013

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 CHAPTER 1
INTRODUCTION

1.1 General Background of the study

During the phase of development in banking concept in Nepal,

the first banking institution was established in 30th Karthik 1994 B.S. in the
name of Nepal Bank Limited (NBL). It was the first banking history of Nepal.
The term bank is derived from the French word 'Banco' which
mean a beach or money exchanging table.
Bank is defined as a financial institution licensed to receive
deposits and make loan. Bank is essential to make the financial and
economical position strong. Bank is an institution that provides a great
variety of financial services. At their basic, bank hold money on behalf of
customers, which is payable to the customer on demand either by
appearing at the bank for a withdrawal or by writing check to a third party.
Oxford dictionary defines a bank as "An establishment for
custody of money, which it pays out on customers order."
Nepal Bank Ltd. is the first modern bank of Nepal. It is taken as
the milestone of modern banking of the country. Nepal Bank Limited
established by King Tribhuvan Birr Bikram Shah Dev on 30th Karthik 1994
B.S. the Nepal Astray Bank was established as central bank in 2013 B.S. for
the development of banijya bank was established was fully government
owned commercial bank.

Bank plays an importance role in the development of the economic

role in the development of the economic position of country. Bank is
essential to make financial position strong of all financial institution. It also
plays a vital role to develop the ruler area of the country. The banking

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 activities are most essential and valuable function for the development of
nation. The bank provides much information to us, such as financial service,
currency exchange, wealth management and saving deposits. Nowadays
bank is ready to provide different kind of services to public, so the bank
becomes essential part of economy to make financial position strong.

1.2 Focus Of The Study

a. This study is focuses in analysis of risk and return of the NIC ASIA
Bank Ltd.

1.3 Problem Of The Study

There are various problems, which are faced by NIC ASIA bank limited. This
study attempt to analyze the risk and return of the following issues:

i. There is lack of knowledge regarding banking sector and large

population over there.
ii. Problem in ruler area
iii. Lack of social obligation
iv. Political influences
v. Lack of adequate banking transaction
vi. Lack of good relationship between top level management and low
level manage

1.4 Objective Of The Study

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 NIC ASIA Bank has played great role in sector of national economy.
Shareholders, investors, customers, use an analytical financial statement
decision maker of management to form judgments about the smoothness
of the operating efficiency and financial position of firm. The primary
objectives of the project work report are to analyze risk and return of NIC
ASIA bank. The main objectives of this project work report are as below.

i. To help shareholders to analyses whether the deposit are being

properly utilized or not
ii. To fulfill a partial requirement of the project work for B.B.S. 4th year
iii. To compare the financial statement of 5 year data
iv. To show the risk and return analysis of the NIC ASIA Bank
v. To analyze profitability position of the NIC ASIA Bank

1.5 Significant Of The Study

This study will be helpful of various matters. Management will be able to

scan their weak area and gaps and take correct action for its improvement.
Shareholders of the bank will know how their fund is being utilized. The
study helps to the shareholder to decide how much and where to invest
their fund in near future.

The significant of the study are as below:

i. Manger can increase net profit ratio
ii. The finding and conclusion of study will be significant to NIC
ASIA Bank in making their financial decision
iii. The study is concern with the financial position of the NIC ASIA
Bank
iv. It helps to know weakness of the bank

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1.6 Limitation Of The Study

No analysis can be perfect and complete without some limitation. Some

limitation of the study given as below:

i. Only NIC ASIA bank is selected for the study

ii. Data are collected by secondary method foe the study
iii. The study is done by using annual report of 5 years period of NIC
ASIA Bank.
iv. Every tools is not taken to analyzing the study

1. 7 Methodology of the Study

Research methodology is a way to find result of a given problem on a
specific matter. In methodology, researcher uses different criteria for
solving or searching the given research problem. In methodology,
researcher always tries to search the given question systematically in our
one way and find out all the answers till conclusion. If research does not
work systematically on problem, there would be less possibility to find out
the result.

Generally, for solving of research problem, data are collect by

two types of sources. Primary data is information obtained directly from
first – hand source, while secondary data is information obtained indirectly
which collected by another person for other studies. One of differences
between the two types of data is that secondary data takes less time to
obtain, while primary data takes more time because the information has to
be gathered from scratch.

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1.7 literatures Review
way to evaluate risk. In the theory and practice of investing, a widely used
Risk and return is a complex topic. There are many types of risk and much
definition of risk is

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 1.9 Bibliography

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Kathmandu: Bhudda Academic Enterprises Pvt. Ltd.

C. P. Joner. (2008). Fundamentals of Investment. Kathmandu: Asmita Books

Publishers and Distributors Pvt. Ltd.

J. M. Pandey. (2008). Financial Management. 9 th Editing. New Delhi: Vikash

Publishing House Pvt. Ltd.

K. Thapa. (2008). Fundamentals of Investment. Kathmandu: Asmita Books

Publishers and Distributors Pvt. Ltd.

D .M. Chance. (2006). An Introduction to Derivatives Risk Management. Singapur:

Thomos South – Western.

D. R. Adhikari. & D. L. Pandey. (2067). Anusandhan Paddati. Kathmandu: Sunrise

Publishers. Pvt. Ltd.

Pandey Raj Joshi. (2004). Fundamentals of Financial Management. Kathmandu:

Asmita Books Publishers and Distributors Pvt. Ltd.

R. A. Haugen. (1997). Modern Investment Theory. New Jersey: Prentice – Hall Inc.

R.B. Poudel. (2007). Corporate Finance Management. Kathmandu: Asmita Books

Publishers and Distributors Pvt. Ltd.

R.S. Pradhan. (2004). Financial Management. Kathmandu: Bhudha Academic

Publishers and Distributors Pvt. Ltd.

W. sharpe., G. Alexander., & J. bailer. (2008). Investment. New Delhi : Pretice Hall
of India Limited.

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