Final Account of Kumari Bank

KUMARI BANK L.td

A project work Report by:
Pooja Bhandari
Submitted to:
Faculty of Management,
Gorkha Secondary School

In Partial fulfillment of the requirement of class 11

Management, Gorkha Secondary School

TABLE OF CONTENTS
 Topics

Cover Page

Acknowledgement

Declaration

Certificate Approval

Supervision Recommendation

Chapter 1: Introduction
1.1 Background of the study
1.2 Objective of the study
1.3 Limitation of study
1.4 Rational of the study
1.5 Methods of study
Chapter 2:
2.1 History of bank
2.1 Regulating system of Nepal Rasta Bank
2.3 Government police for Banking system
2.4 Type of bank in Nepal

Chapter 3:
3.1 About Nepal Bank
3.2 Introduction and history of Nepal Bank
3.3 Types of deposits in Nepal Bank
3.4 Types of loan provided in Nepal Bank
 3.5 Services provided by Nepal Bank
3.6 Head office and board member of Nepal Bank
3.7 All other information of Nepal Bank
3.8 Methods of the study
3.9 Financial statements
3.10 Balance Sheet of Kumari Bank Ltd
3.11 Profit and loss of Kumari Bank Ltd
Chapter 4:
4.1 Summary
4.2 Conclusion
4.3 References

ACKNOWLEDGE
This field work report entitled “Financial Performance Analysis of Kumari Bank Limited” has
been prepared in partial fulfillment for project work under the teachers of Gorkha Secondary
School. It is my privilege of getting helps and co-operation from different persons. It is not
possible to ensure the names of those personalities whose valuable suggestions and co-operation
escorted to complete this field work report. First and foremost, I would like to offer special
thanks to Mr. Pradeep Kumar Bhandari for his proper suggestions. I would like to thank all the
staff of the Kumari Bank Ltd for their full support in providing all the necessary data, which
helped me in preparing this report. I could not remain without thanking to my teachers and
lectures who all helped me during my study and during preparation of this report. Lastly, I
heartly bey sorry for my any assure to take responsibility for all comments.
Thank you.

DECLARATION

I hereby declare that the project work submitted to the faculty of Management, Tulsipur 6, Dang
is an original piece of work under the supervision and guidance of Mr. Chabi Khadka, Subjected
teacher, Management, Gorkha Secondary School, Tulsipur Dang and is submitted in partial
fulfillment of the requirements for the practical marks in Accountancy. This project work has
been submitted to Mr. Chabi Khadka, Subject teacher, Accountancy, Faculty of Management,
Gorkha Secondary School, Tulsipur-6 Dang

………………………
Pooja Bhandari
Gorkha Secondary School.

SUPERVISION RECOMMENDATION
The project work report entitled “Final Account of KUMARI BANK LIMITED’’ by Pooja
Bhandari of Gorkha Secondary School is prepared under my supervision as per the procedure
and format requirements laid by the Faculty of Management, Gorkha Secondary School, as
partial fulfillment of the requirements for school project work, I therefore, recommend the
project work report for evaluation.
Signature……………………….
Mr. Sharad Kumar Dangi
Supervisor
Gorkha Secondary School, Tulsipur-6, Dang

Chapter 1

INTRODUCTION

1.1 Background of the study

Analysis of financial statements/performance to detect financial health of finance

companies, development banks and commercial banks as a whole is a less explored
research in Nepalese context. This report, therefore, attempts to examine the financial
 performance and analyze financial statements of Nepalese financial institutions in the
frame work of CAMEL. This study is based on descriptive casual research design. This
report is based on secondary data which was extracted from various publications
published by Nepal Rastra Bank.
All commercial banks, development banks, and finance companies are taken as
population of study. The report deals with financial performance analysis of entire
population covering 2079/80. Various variables are used here to analyze final account of
Nepal Bank Limited.

Banks are among the most important financial institution in the economy and essential
business as it serves in thousands of local towns and cities. It plays an importance role in
the development of the economic position of country. Bank is essential to make the
financial strong of all the financial institution. It also plays vital role to develop the
trading, commercial and industries infrastructure of the country.

Nepal is a small land locked country with a per capita income of less than $650. There
are so many Nepalese people illiterate only few people know the significance of bank and
banking activities. Bank makes a better use of money and mobilized the people’s saving
in productive sector. It helps in every aspects of government.

1.2 Objectives of the study:

The main objectives of this are to analyze, examine, and interpret the final position of
Nepal bank with help of ratio analysis and other tools. The study tries to evaluate the
efficiency and progress of the sample banks comparatively. The specific objective of the
study are pointes below:
 To find out the liquidity position of the bank
 To be adapted to the life working environment
 To evaluate the earning performance of the bank
 To evaluate the efficiency of Banks management
 To analyze the financial strength and weakness of the simple bank.

1.2 Limitation of the Study:

The study will have some limitation. Basically, the study is done for the partial
fulfillment of the requirements for the partial marks in Accountancy. So, the study is
completely based on the secondary data. Some limitations of the study are given below:
  Time and lack of resources id the main limitation of the study.
 Out of various commercial banks, this study is concerned with the only one
commercial bank.
 This study is basically based on secondary data. This study is based on the
secondary data collection through questionnaire, distribution, where the
information was given in condensed form. Thus, there may be some chance of
failing to the address the recent current situation.
 Although there are various aspects of financial management, this mainly
concerned with the final account ko NBL of the sample bank.
 No comparison has been made with other commercial banks.

1.3 Rational of study

This project is to prepare analyze the final account of Kumari bank limited. The study
checks the profit ability position of the bank, beneficial to readers, invested in the field of
banking research and other people related in this field.

.
1.4 Methods of study:
 Primary Source:
Under the primary source, we interviewed with teacher, bankers
and discuss among the group members by making questions.
 Secondary Sources:
I collected necessary information by searching in internet
Chapter 2:
2.1 Definition of Bank

A bank is a financial institution that deposits from the public and creates a demand deposit while
simultaneously making loans. Lending activities can be directly performed by the bank or
indirectly through capital markets.
Because banks play an important role in financial stability and the economy of the country, most
jurisdictions exercise a high degree of regulation over banks. Most countries have
institutionalized a system known as fractional reserve banking, under which banks hold liquid
assets equal to only a portion of their current liabilities. In addition to other regulations intended
to ensure liquidity, banks are generally subject to minimum capital requirements based on an
international sets of capital standards, the Basel Accords.

2.2 History of Bank

The history of banking began with the first prototype banks, that is the merchants of the world,
who gave grains loans to farmers and traders who carried goods between cities. This was around
2000 BC in Assyria, India and Sumeria. Later, in ancient Greece and during the Roman Empire,
lenders best in temples gave loan, while accepting deposits and performing the change of money.
Archaeology from this period in ancient China and India also shows evidence of money lending.
Many scholars trace the historical roots of the modern banking system to medieval and
renaissance Italy, particularly the affluent cities of Florence, Venice and Genoa. The Bardi and
Peruzzi Families dominated banking in 14th century Florence, establishing branches in many
other parts of Europe. The most famous Italian bank was the Medici Bank, established by
Giovanni Medici in 1397. The oldest bank still in existence is Banca Monte dei Paschi di Siena,
headquarter in Siena, Italy, which has been operating continuously since 1472. Until the end of
2002, the oldest bank steel in operation was the Banco di Napoli headquartered in Naples, Italy
which had been operating since 1463.
Development of banking spread from northern Italy throughout the Holy Roman Empire, and in
the 15th and 16th century to northern Europe. This was followed by a number of important
innovations that took place in Amsterdam during the Dutch Republic in the 17th century, and in
London since the 18th century. During the 20th century, developments in telecommunications and
computing caused major changes to banks’ operations and let banks dramatically increase in size
and geographic spread. The financial crisis of 2007-2008 caused many bank failures including
some of the world’s largest banks, and provoked much debate about bank regulation.

2.3 Regulating System of Nepal Rastra Bank

Nepal Rastra Bank Act has objective to development a secure. Healthy and efficient system of
payment and this act also gives powers to regulate by the office of the Controller of the currency
(OCC) Most national banks must be members of the federal Reserve System.

Small Bank
Payment Bank 4 Types of bank in Nepal
 Central Bank
 Cooperative Bank
 Commercial Bank
 Regional Bank
 Local Area Bank
 Specialized BanK

Chapter 3:

3.1 Definition and History of Kumari Bank

Kumari Bank is one of the famous Bank of Nepal. It was founded as Nepal Industrial and
commercial Bank on 21 July 1998. It was renamed Kumari Bank on 31 June after it merged with
Bank of Asia. The merger was the first between of two commercial banks in the Nepalese
Banking history. After the merger, Kumari Bank was recognized as “Bank of the Year 2014-
Nepal” by The Banker, Financial Times, UK. This is the second time that the bank was and
Kumari Laghubittiya Sanstha limited. recognized with this prestigious award, the previous
occasion being in 2007. The Bank has successfully completed its 21 years of operation. The
company has currently the following wholly owned subsidiaries: Kumari Bank Limited
The bank, with its 359 branches, 473 ATMs, 102 extension counters and 81 branchless banking
service is the largest bank in terms of footprint expansion, customer base including balance sheet
size. Currently bank is providing services to more than 3 million customers (2022, April).
The bank is headed by Tulsi Ram Agrawal as its chairman and Pradeep Kumar Bhandari as chief
executive officer. Bhandari was appointed as CEO of the bank on 2 December 2020 with four
years tenure.

3.2 Types of Deposits in Kumari Bank;

1. Saving Deposit
2. Fixed Deposits
3. Recurring Deposit
4. Employee Welfare Account
5. Trust Fund
6. Call Deposits
7. FCY Saving Deposit
8. FCY Call Deposit
9. FCY Fixed Deposit
10. NRN Saving Deposit
11. NRN Fixed Deposit
 3.3 Types of loan provided by Kumari Bank;
a. Personal Loan
b. Auto Loan
c. Margin leading
d. Home Loan
e. Professional Loan
f. Flexi Loan
g. Educational Loan
h. Gold and silver Loan
i. Pensioner Loan
j. Ghaderi Loan

3.4 Service provided by Kumari Bank;

1 Flywire: Flywire is a secure, streamlined payment solution that saves international students
time and money when making tuition and fee payments. Flywire’s easy to navigate system
enables students to pay in their home currency, saving them a significant amount of money when
doing so. It is a leading provider of global payment and receivables solutions focused on making
large-sum payments borderless for their clients.
Nepal Bank has partnered with Flywire Corporation, MA, USA for processing international
education related payment from Nepal to various colleges and education institutions associated
with Flywire all across the world. Through this partnership with Flywire, NMB bank strives to
provide unmatched benefits to Students, parents and education consultancies alike with a process
that is simple, Traceable, and Transparent to all parties involved in the payment processing.
Thus, with Flywire we can have an option to pay the amount in Nepalese currency and we can
know the exact amount that we have to pay.
2. Demand; A demand Account or dematerialised account provides the facility of holding shares
and securities in an electronic format. It is an account opened by any investor with Depository
Participant (DP) who wishes to invest in various securities like share, debenture etc.
Demat account offered by NBl bank is a safe and secure way to keep your stocks complimented
with the ease to track your investment online. You can access your Demat account through
Mobile Banking and internet Banking, a convenient way to view Demat account statement and
track transactions. The Bank provides Demat account services from its branches in partnership
with Depository participant.
3.5 Total number of Kumari Bank
The Bank has 359 branches, 124 extension counters, 79 branches banking, and 477 ATMs across
Nepal with a network covering all major financial centers of the country.

3.6 Head office and board member of Kumari Bank

In Trade Tower, Nepal. There is the head of the Kumari Bank. The bank is headed by Tulsi Ram
Agrawal as its chairman and Pradeep Kumar Bhandari as chief executive officer.

3.7 All Other Information of Kumari Bank

 CORPORATE VISION
To be the most preferred bank of the Nation with complete banking solutions.

 MISSION STATEMENT
Kumari Bank collaborates with its customers while designing, developing, and
delivering banking solutions to satisfy the interest of all stakeholders by efficiency
leveraging cutting-edge technology. The bank endeavors to be ethical in product
offering, responsive and trustworthy in ensuring security to protect its own and
customers’ interest.

 VALUE STATEMENT
The following are the core values (BREED) of the bank;
B: BEHAVE WITH DIGNITY AND RESPECT
R: RESPONSIBLE
E: ETHICAL
E: EMPOWER EMPLOYEES
D: DEVOTE FOR INNOVATIONS

 Goal
In line with the Vision and Mission Statement, the bank’s goal is “To achieve secured
and sustainable business growth to attain larger market share” through enhancing
Operational Efficiency and Customer Service, Increasing HR Productivity, and Risk
Management System. Kumari Bank comprise highly motivated staffs who are customer
centered. Under the guidance of the supervisor and staff members I was able to
experience various activities. I was able to know about the basic functioning of bank
like opening and closing of bank account, issuing of cheques and statements, and
clearing of cheques. This has enhanced the practical knowledge and development
 interpersonal skills, professional qualities, communication skills, team work and knows
the ways to deal with the bank staffs.

4.3 Reference
 https://www.kumaricapital.com/
 “Introduction here 1”. Kumari Bank Limited.
 “Kumari Banka”.www.kumaricapital.com.
 “Branches”. Kumari Bank Limited.

CHAPTER 4:
SUMMARY AND CONCLUSION
4.1 Summary
The economic activities development of a country can not be imagined without the development
of commerce and industry. The role of commercial banks in the economic growth of nation can
be estimated to be prominent. The very challenging job of commercial banks is to collect the
scattered idle resources from the small savers. Actually, commercial banks pool the fund in the
sizable volume in order to feed the fund requirement of productive sector promote trade and
industrialization in the country there by raising the employment opportunity and earned to the
labors and materials suppliers to such industries and traders. Commercial banks of course
contribute a lot to the development of the country. Thus, to remain in the front line of the great
contributor of the economy, the banks have sustainable existence and growth themselves. For the
sustainable existence and growth of a bank, it must have reasonable profitability.
4.2 Conclusion;
Banking industry is one of the booming and most profitable sector of the economy. There has
been massive growth and demand of banking products and services. Thus, the result is increase
in number of banks with their specialized products like consumer loans, investment banking and
foreign trading and so on. Kumari Bank is “A” grade bank that has been recently upgraded. It is
governed by the experienced bankers and professionals. Its main focuses in providing consumer
satisfaction by offering various products and services including saving, fixed, call deposits,
consumer and business loans, investment banking, etc. With some commercial banks and
development banks operating in Nepal, the market seems over crowed and the banks are now
finding a tough competition among themselves. Since the entry barriers are not so high due to
the government’s liberal policy, this competition is expected to be more intense in the near
future, as there is always the possibility of a new player entering this sector. NABIL bank has not
maintained a balance ratio among its deposit liabilities. Consequently, the bank does not seem to
be able to utilize its high-cost resources in high yielding investment portfolio. The investment
portfolio of the bank has not been managed so efficiently as to maximized the returns form. The
operational efficiency of the bank is found unsatisfactory because of the series of operational loss
over the period. Lower market value is a reflection of a weaker profitability ratio of the bank.

CERTIFICATE OF APPROVAL
This is certify that the project work entitled “Analysis of Final Account of Kumari Bank
Limited.” Submitted by Pooja Bhandari of class XI (11), of the academic year 2080/81 for the
partial fulfillment of the requirements of project work for Class 11 has been successfully
completed under the guidance and supervision.
…………………… ………………….
(Mr. Sharad Kumar Dangi) External Examiner
Subject teacher.