INVESTMENT POLICY OF

COMMERCIAL BANKS IN NEPAL

(A comparative study of Citizens and Sanima Bank Limited)
 Background of the Study
 The word ‘investment’ denotes the investment of income, saving or
other collected funds.

 Investment policy is an important ingredient of overall national

economic development because it ensures efficient also allocation of
fund to achieve the materials and economic wellbeing of the society
as a whole.

 A commercial bank is profit seeking business firm, dealing in money

and credit. It is a financial institution dealing in money in the sense
that it accepts deposits of money from the public to keep them in its
custody for safety.

 A bank makes investments in government securities and in the stocks

of large reputed industrial concerns.
 Statement of the problem
 Are they maintaining sufficient liquidity?

 How much successful are banks in their investment strategies?

 Is there any relationship of investment and loan & advances with

total deposits and total net profits?

 Effects of investment decision to the total earning

 Whether the commercial banks are able to face upcoming

obligations.
 Objectives of the study
 To study the liquidity, safety, profitability and investment portfolio.

 To analyze the trend of deposit utilization and investment.

 To analyze the relationship between total investment and total

deposit, total deposit and loan & advances, net profit and assets of
commercial banks.

 To provide suggestion for improvement on the basis of findings.

 Literature Review
 Every study is based on past knowledge. The past knowledge or
the previous studies should not be ignored as it provides
foundation to the present study.

 The bank board of directors formulates as investment policy

statement in order to define the objectives of the bank, liquidity
management and investment portfolio.

 Most of financial executives and customer fell that Nepalese

investors do not have knowledge about investment policy.

 Thus , this research is conducted mainly on the basis of secondary

data
 Research Methodology
 Research methodology is the way to solve systematically the
research problem, which included many techniques and is a must
for every research study.

 To reach and accomplish the objective of the study, different

activities will be carried out and different stages will be crossed
during the study period

 It includes the techniques like research design, population and

sample, sources of data, data collection techniques, data analysis
tools and limitations of the methodology.
 Limitations of the study
 This study is carried out within the framework of case study
research design.

 Only two unit of the population is taken for the study, therefore the
study may not be able to represent the whole scenario.

 Different models and tools which are used for data collection in the
research work are not completely free from the criticisms. So, it also
imposes to draw the road of limitation

 Different tools are used to analyze the collected data, which are
based on certain assumptions.
 Organization of the study

 Chapter 1: Introduction

 Chapter 2: Literature Review

 Chapter 3: Research methodology.

 Chapter 4: Result and Discussion

 Chapter 5: Summary and Conclusion

 Bibliography
 Annual reports of Sanima Bank.

 Annual report of Citizens Bank.

 Atal, V. (2010). Investment Policy Analysis of Commercial Banks.

 https://www.ctznbank.com/

 https://www.sanimabank.com/

 https://www.wikipedia.org/