Chapter1 Introduction1.1 Background of the study The history of banking is closely related to the history of money but banking transactions probably predate the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy-to-carry compressed plates. Temples and palaces were the safest places to store gold as they were constantly attended and well built. As sacred places, temples presented an extra deterrent to would-be thieves. The first banks were the merchants of ancient world that made loans to farmers and traders that carried goods between cities. The first records of such activity dates back to around 2000 BC in Assyria and Babylonia. Later in ancient Greece and during the Empire lenders based in temples would make loans but also added two important innovations; accepted deposits and changing money. During this period there is similar evidence of the independent development of lending of money in ancient China and separately in ancient India. Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy, to the rich cities in the north like Florence, Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe.[1] Perhaps the most famous Italian bank was the Medici bank, set up by Giovanni Medici in 1397.[2] The development of banking spread through Europe and a number of important innovations took place in Amsterdam during the Dutch Republic in the 16th century and in London in the 17th century. During the 20th century developments in telecommunications and computing resulting in major changes to way banks operated and allowing them dramatically increase in size and geographic spread. The Late-2000s financial crisis saw significant number of bank failures, including some of the world's largest banks, and much debate about bank regulation. Nepal Rastra Bank, the Central Bank of Nepal, was established in 1956 under the Nepal Rastra Bank Act, 1955, to discharge the central banking responsibilities including guiding the development of the embryonic domestic financial sector Nepal Bank Limited, the pioneer in banking in our country is our country started its work since 1994 B.S. Right from inception it carried out function of a commercial bank having felt the need of development of banking sector 1

and monetary policies Nepal Rastra Bank act 2012 was established on 14th Baisakh 2013. Since then it has functioning as a government bank. About Himalayan bank Himalayan Bank Limited (HBL) is one of the largest and reputed private sector banks of Nepal. The Bank was incorporated in 1992 by a few eminent individuals of Nepal in partnership with the Employees Provident Fund and Habib Bank Limited, Pakistan. Despite the cut-throat competition in the Nepalese Banking sector, Himalayan Bank has been able to maintain a lead in the primary banking activities- Loans and Deposits. The Bank commenced its operations in January 1993. Himalayan Bank is also the first commercial bank of Nepal with most of shares held by the private sector of Nepal. Besides commercial banking services, the Bank also offers industrial and merchant banking service. HBL is one of the pioneer commercial banks in the Nepalese banking industry with it b e i n g o n e o f t h e i n i t i a l p r i v a t e c o m m e r c i a l b a n k s i n N e p a l . H B L i s k n o w n f o r i t s expertise in project financing and having a reputed and A rated clientele. Especially with its BOD containing reputed business houses like the Khetan Group, this bank has a good business in hand. HBL is well known for its friendly work c u l t u r e w i t h educated and professional employees motivated to work for long working hours. Hence, HBL was chosen so as to experience the professional working culture and acquire the best possible knowledge of H B L s e x p e r t i s e i . e . p r o j e c t f i n a n c i n g a n d o ther credit related functions and products. Legacy of Himalayan lives on in an institution that's known throughout Nepal for its innovative approaches to merchandising and customer service. Products such as Premium Savings Account, HBL Proprietary Card and Millionaire Deposit Scheme besides services such as ATMs and Tele-banking were first introduced by HBL. Other financial institutions in the country have been following our lead by introducing similar products and services. Therefore, we stand for the innovations that we bring about in this country to help our Customers besides modernizing the banking sector. With the highest deposit base and loan portfolio amongst private sector banks and extending guarantees to correspondent banks covering exposure of other local banks under our credit standing with foreign correspondent banks, we believe we obviously lead the banking sector of Nepal. The most recent rating of HBL by Bankers Almanac as countrys number 1 Bank easily confirms our claim. 2

With its head and corporate office at Thamel, Kathmandu, the bank has 33 branches. Thirteen of its branches are located inside the Kathmandu while the rest are spread across the nation .Besides, a branch looking exclusively at electronic cards and related products, is based in Lalitpur. Vision of the bank Himalayan Bank Limited has the vision of becoming a leading Bank of the country by gaining substantial business growth through provision of premium products and services to customers, thus ensuring attractive and substantial returns to our entire stakeholder. Mission of the bank HBLs mission is to become the preferred provider of quality nancial services in the country. There are two components to our mission: preferred provider and quality nancial services. We believe that this mission will be accomplished only by satisfying these two important components with the customer at the focal point of all our efforts. The bank always strives positioning itself in the hearts and minds of the costumers. Objectives of bank: To become the bank of the first choice To introduce new banking tradition and technologies to the customer. To explore and work vigorously on new product ideas so as to deliver something new to our customer. To introduce modern banking product and services into banking sector. To diversify card business by focusing on Visa debit card, prepaid card and MasterCard. To expand remittances business to Asian, European and American markets with a focus on further sophisticated services. To introduce deposits products tied up with debit and credit cards for the purpose of increasing the number of debit and credit card customers remarkable. Product and services: The bank offers a wide array of products and services that are made suit the need of the customers. Below are some of them: 1. Deposits The bank has introduced a rich variety of deposit products. The bank offers deposit products liked Normal saving scheme backed by accidental death insurance scheme and specialized deposit products like Premium saving account (PSA).PSA is saving account with a host of convenient features and benefits. With a view of adding more value to the deposit customer, the bank is the first to install ATMs. For the convenience of institutional depositors, it has been offering the current call account that is an operating account with healthy returns. Other types of 2

deposits that the bank is operating currently are: fixed account, saving account, super premium saving account (PSA),bishesh saving account, jumbo term and recurring saving account. 2. Corporate financing It is one of the strategic banking activities of the bank. The bank actively engages in wholesale banking with products and services design to cater to the needs of big houses .Adequate capital and a strict capital standard give the bank the required lending strength for high volume credit. Some of the products include Projects loan, revolving and non-revolving cash credit and trade finance facilities. 3. Himal Remit HimalRemit, a premium online customer focused and technology oriented Money Transfer product is brought to you by Himalayan Bank Limited, the leading joint venture bank of Nepal. Himalayan Bank is a pioneer in the field of retail money transfer business with over a decade long customized service delivery experience in the field. HimalRemit has the largest payment network covering all cities, towns and villages of the country and is capable of paying at more than thousand locations across Nepal which is in ever growing trend as per the demand of local customers and service providers. HimalRemit is a state-of-the-art web-based online money transfer system. It is easily accessible through our main web domain www.himalayanbank.com. It can be directly accessed by all our branches and network thus ensuring prompt execution of the remittance. The product is monitored and serviced 24/7 by our Remittance Promotion Department dedicated to deliver fast and reliable services to the customers. It has also been to trying to link its facilities to two more countries i.e. Canada and Belgium. 4. International banking To assist its trading Customers, HBL offers Letter of Credit (LC) facilities. Customers can place their LC application in any of HBL Branches. The fees/charges are one of the lowest amongst the commercial banks of Nepal. The Customers enjoy wide correspondent network of Himalayan Bank in addition to the attractive rates. 5. Ancillary Services We offer a host of ancillary services that provide convenience, security and comfort for our customers. They are:: Safe Deposit Lockers: Locker facility of various sizes as per our customers preference and convenience of location.

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SMS Banking: Allows our customers to check their balance, status of cheque (encashed or not), HBLs foreign exchange rate and contact numbers of branches. Internet Banking: Banking can be done safely and securely from wherever there is a connection at all times of the day. TC sales/purchase. 24/7 Automated Teller Machines (ATMs): in more than 50 locations. Everyday Easy Banking Service. Any Branch Banking Services. Funds Transfer: Within and outside the country. Fee Collection/Payment Services: For educational institutions. Service Package for Students: For those going abroad for higher studies

1.2 Objectives of the study The objective of this report is to understand the banking process and analyze, examine and interpret the financial aspects of the bank .It focuses on analyzing the competitive position of the bank and to be familiar with the practical portion and specific uses of theoretical understanding. The following are the objectives of the project: To analyze the general operations of the bank and the banking culture. To examine the financial performance of the bank in terms of market share, dividend per share, earning per share, credit quality. To access the financial stability of the bank. To identify the standings and analyze the progress of the institution. To study about financial ratio and its analysis. To discuss fund mobilization and strategy of liquidity management of HBL. 1

To access the future trend of total deposit, net worth and investment. To access the various processes banks go through to overcome the risks associated with loans and advances. To access a career option in this sector. Get hands on experience of commercial banks. Get acquainted with real working condition.

1.3 Significance of the study Banking sector is growing faster and faster in Nepal because it provide quality service and reasonable lending capital to borrower. May be one reason is it provide reasonable interest rate to the public. There are many services which is providing by bank, which is beneficial to general public. The main motive of commercial banking is to invest the capital and to gain the profit which is really vey helpful for development of economy. There are various schemes which really attract the customer such as opening the account in a minimum balance. Hence, there is a competition between the banks which enhance the better quality of services. Therefore, conduct ing project in banking sector is very much essential as it is a booming service oriented business sector in Nepal. It has an awesome career opportunity through our management study. In present context of Nepal, banking sector is one of the competitive sectors. There is a cut-throat competition in the Nepalese Banking sector and this bank has always been able to maintain a lead in the primary banking activities- Loans and Deposits. Thus, by doing this project in this organization, it will be beneficial to improve the managerial skills as well be familiar with accounting terminologies and techniques which are highly needed for the management student. In the present context of Nepal, Himalayan Bank has already established its mark as a major well fascinated financial institution and in the economic arena of the country. It has also recognized itself as an institution having a different banking culture. In brief, from this summer project, we can analyze the financial position of the institution .We can also evaluate the hierarchy and activities of the employees and the other level staffs, how its working systematically within the institution. It is definitely beneficial in the increment of practical knowledge. Foremost, this summer project is essential to meet the partial requirement of the bachelor in business administration (BBA) curriculum.

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1.4Limitations of the bank Following are the limitations of the study This report is presented as per the academic qualification of bachelor level and any higher level analysis is tensed due to lack of knowledge. It is naturally been constricted by time as a 3 day visit to the bank is insufficient. The financial and other data are secondary data are secondary and detail primary data arent made available to protect the privacy and financial secrecy. Some terms used in banking procedure were beyond my knowledge so I have written as it was in the source The authenticity of the report depends on the authenticity of the data sources which are secondary by nature

1.5 Organization of study First chapter deals with introduction which includes introduction

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Chapter2 Literature review2.1 Brief History of the bank

2.7 Organisation structure

BOD

BOD Secretariat

CEO

Audit Committee

Shares

Senior GM

Internal Audit and inception department

Compliance and internal control Department

Planning and Product Development Department Branches (Through BM)

Executive human Resource Officer

General Manager Marketing and Credit

General Manager Operations

Executive Marketing

Executive Financial Executive Recovery Officer

Executive Credit Officer

Executive Operating Officer Executive Administrative officer1

Executive Credit Officer Human Resource Department

Executive Administrative officer Legal Department ITLegalSWIFT Department and Department IT and SWIFT Department

2.8 Department: Customer Relation Department (CRD): Human Resource Department The major function of managers in CRD is to interact with the loan applicant/client and discuss the need of the credit facility and other various factors related to it as well as understand that there is inherent credit risk in any business proposal in the banking sector. So the RMs in CRD has the ability or develops the ability to i d e n t i f y t h e s e risks and develop ways to mitigate these risks with the capability to properly monitor insurable inflow of predetermined returns. They work according to the HBLs Credit Policy Guidelines which has set the parameters of credit operation. This department comes under the direct supervision of the branch managers and the CAPs prepared have to be forwarded to the CCD after the approval of the BM.Managers in this department basically focuses upon serving cli e n t s w i t h l o a n processing and managing their loan tenure especially loans for business applications a n d e n t e r p r i s e s . T h e v a r i o u s p r o d u c t s o r s e r v i c e s t h i s department provides to its customers are Subhida Loan (Revolving and N o n R e v o l v i n g ) , p e r s o n a l l o a n i n t h e form of overdraft, loan processing for assessing of credit limits for Letter of Credit, Overdraft loans, EMI based loans for property purchase, Working Capital Financing, loans against financial instruments like shares, fixed deposit etc.

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Credit Control Department (CCD):

The CCD comes under the head office and managers in CCD are directly supervised by the General Manager- Marketing and Credit. The main function of managers in CCD is to make thorough and critical analysis of the credit approval packages forwarded by the CRD of the various branches all over the country. The credit policy envisions delegation of authority to branch level, such that credit operations can function smoothly. However, all the credit decisions cannot be finally made at the branch level. Same credit proposals need to be decided at the corporate level, even though they originate from branches. In order to streamline the flow of such credit proposals, which are to be finally disposed off at corporate level, a team of managers dedicated to do this has been created which is the Credit Control D e p a r t m e n t . A l l t h e p r o p o s a l s r e l a t e d t o c r e d i t f u n c t i o n s a r e r o u t e d t h r o u g h t h e m whenever such proposals are to be submitted at the corporate level. Other proposals coming from A category branches are directly routed to the CCD. Service department Corporate services are activities that combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners. At Himalayan Bank offer variety of products and services to our customers focusing on their diversied and varied kind of nancial needs and wants. Our product development and modi cation process is directly targeted to cater to the needs of our existing as well as potential customers in the market and continuously enrolling our research unit in studying their behaviors. We believe that the study of existing customer behavior is very crucial to understand customer satisfaction regarding existing products and services offered by the nancial institutions in the market. Likewise, we are convinced that this study has enabled us to explore varied kind of nancial needs and wants emerging in the market. Besides this, we are also on a constant look out on emerging trends in the market. This has facilitated us time and again in capturing hints for taping the untouched niche in the market. Such behavior has facilitated us in capitalizing our potentials for achieving comparative advantage as a stepping stone for earning the fame of pioneer move among our competitors & counterparts. We feel proud to be recognized as a pioneer in introducing many innovative products & services. We are well known in the market as 1

a convenient Bank for performing nancial transactions. Our customers and stakeholders enjoy secure nancial transactions with us. Our innovative and quick learning approach in the technical eld has enabled us to stand as a techno savvy bank in the market. In short, we literally bring banking services to our customers doorsteps. Account (zero balance account), Himal Remit Savings Account (customized for remitters), Bishesh Savings Account (for minors, senior citizens, the physically handicapped and the illiterate) and Shareholders Savings Account (for the convenience of its shareholders). We offer Current Account for daily business transactions. Call Account gives an earning opportunity for businesses in their current account, while Non- Prot Organization Current Call Accounts are designed for NGOs, INGOs and charitable trusts and have attractive interest rates. Fixed Deposit products include Fixed Term Deposit, Three-Year Recurring Deposit (for monthly deposits) and Jumbo Term Deposit (for those willing to park funds for 3 to 5 years and earn attractive returns).

Finance department Managerial or finance department is where the task of providing the funds for a corporation's activities is to undertaken.Corporate finance generally involves balancing risk and profitability, while attempting to maximize an entity's wealth and the value of its stock, and generically entails three interrelated decisions. In the first, "the investment decision", management must decide which "projects" (if any) to undertake. The discipline of capital budgeting is devoted to this question, and may employ standard valuation techniques or even extend to real options valuation; see Financial modeling. The second, "the financing decision" relates to how these investments are to be funded: capital here is provided by shareholders, in the form of equity (privately or via an initial public offering), creditors, often in the form of bonds, and the firm's operations (cash flow). Short-term funding or working capital is mostly provided by banks extending a line of credit. The balance between these elements forms the company's capital structure. The third, "the dividend decision", requires management to determine whether any inappropriate profit is to be retained for future investment / operational requirements, or instead to be distributed to shareholders, and if so in what form. Short term financial management is often termed "working capital management", and relates to cash-, inventoryand debtors management. These areas often overlap with the firm's accounting function, however, financial accounting is more concerned with the reporting of historical financial information, while these financial decisions are directed toward the future of the firm.

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Marketing Department Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development.[1] It generates the strategy that underlies sales techniques, business communication, and business developments.[1] It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.[1] Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacitiesin the last 2-3 centuries.[citation needed] The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.[citation needed] The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions.[2] It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.[2] The marketing planning process involves forging a plan for a firm's marketing activities. A marketing plan can also pertain to a specific product, as well as to an organization's overall marketing strategy. Generally speaking, an organization's marketing planning process is derived from its overall business strategy. Thus, when top management are devising the firm's strategic direction or mission, the intended marketing activities are incorporated into this plan. There are several levels of marketing objectives within an organization. The senior management of a firm would formulate a general business strategy for a firm. However, this general business strategy would be interpreted and implemented in different contexts throughout the firm.

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Chapter 3 Data analysis and presentation Ratio analysis:A ratio is an expression of the quantitative relationship between two figures. It is a simple mathematical expression of the relationship to one item to another. The relationship between two meaningful accounting figures drawn from financial statements (i.e. income statement, profit and loss account and balance sheet). Ratio analysis is the important side of business sector. The important aspects of ratio analysis can be listed as follows: To express financial trend (it helps to express sales, costs, profit, dividend etc) It is useful in analysis of financial statement Ratio analysis provides information about the past performance of a firm and also useful to financial planning & forecasting. Ratio analysis helps to understand the changes in the financial condition of the business over years. Ratio analysis compares financial standing with post and can point out the deficiencies of the business. Ratio analysis provides information about the overall formation or condition of a firm

3.1 Profitability Ratios:The profitability ratios are used as a measure to judge the operating efficiency (i.e. success of failure) of a business organization. If organization will have no future it is unable to make reasonable profit from its operation. 1. ROE (Return on equity) Return on equity is calculated as follows:Return on Equity (ROE) = Net income after tax Shareholders equity (Rs 000) *100

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Fiscal Year

Net Income After Tax Shareholders Equity Return On Equity (In (In Rs.) (In Rs.) 1,766,176 2,146,500 2,512,992 3,119,881 3439205 %) 25.90 22.91 25.30 24.13 14.79

2005/06 2006/07 2007/08 2008/09 2009/10

457,458 491,823 635,869 752,835 508798

Decision:-Higher ratio reflects the efficiency of the management in maximizing the wealth of the real stakeholders of the firm. 2. Return On Total Assets (ROA):-

ROA is calculated as follows:ROA = Net income after tax *100 Total Assets

(Rs 000) Fiscal Year Net Income After Tax Total Assets (In Rs.) ROA (in %) 1

(In Rs.) 2005/06 2006/07 2007/08 2008/09 2009/10 457,458 491,823 635,869 752,835 508798 30,579,808 34,314,868 36,857,625 40,046,686 43860251 1.4959 1.4332 1.7252 1.8798 1.1600

Decision:-Generally, higher ratio implies better return on permanent capital employed by an organization. Higher ROA ratio better is the financing position of the bank. The ratio of return on total assets measures the success and failure in the organization of the assets by the bank over the years. 3. Equity Capital Ratio:Equity ratio is calculated as follows:Equity Capital Ratio = Equity capital Total assets (Rs 000)

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Fiscal year

Total Equity Capital Total Assets (In Rs.) (In Rs.)

Equity Capital Ratio

2005/06 2006/07 2007/08 200 8/09 2009/10

1,766,176 2,146,500 2,512,992 3,119,881 3,439,205

30,579,808 34,314,868 36,857,625 40,046,686 43860251

0.05776 0.06255 0.06818 0.07790 0.07841

Decision:-Higher the equity capital ratio lower will be the risk and lower be the return. Here we can see in the above table and bar-diagram the equity capital ratio of Himalayan Bank Limited is in increasing trend which indicates that the bank is willing to takes less risk and less return. 4. Interest Spread Ratio:Interest Spread ratio is calculated as follows:Interest Spread Ratio = Interest income - interest expenses Total assets (Rs 000) Fiscal Year Interest (In Rs.) 2005/06 2006/07 2007/08 2008/09 2009/10 1,626,474 1,775,583 1,963,647 2,342,198 3148605 Income Interest Expenses Total Assets (In Interest (In Rs.) 648,842 767,411 823,745 934,778 1553531 Rs.) 30,579,808 34,314,868 36,857,625 40,046,686 43860251 Ratio 3.196 2.338 3.092 3.514 3.636 Spread

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Fiscal year

Total loan (In Rs.)

Total Assets (In Rs.)

Loan to total assets ratio

2005/06 2006/07 2007/08 2008/09 2009/10

15761977 17793724 20179613 25519519 29123755

30,579,808 34,314,868 36,857,625 40,046,686 43860251

51.5437 51.8542 54.7501 63.7244 66.4012

5. Loan to total assets ratio Loan to total assets =Total loan *100 Totalassets

6. Net operating cost ratio = Net operating cost /total assets

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Fiscal year

Net operating cost (In Total Assets (In Rs.) Rs.)

Net ratio

operating

cost

2005/06 2006/07 2007/08 2008/09 2009/10 Fiscal year

329699 322865 344321 398317 471103 loan (In Rs.) Total

30,579,808 34,314,868 36,857,625 40,046,686

1.0781 0.9408 0.9341 0.9946 cost

43860251 Total deposit (In Rs.) 0.0741 operating Net ratio

2005/06 2006/07 2007/08 2008/09 2009/10

15761977 17793724 20179613 25519519 29123755

26490852 30048418 31842789 34681345 37611202

59.49 59.22 63.37 73.58 77.43 (Rs 000)

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7. Loan to deposit ratio Loan to deposits ratio=total loan *100 total deposit

3.2 ) Liquidity Ratio:Liquidity ratios are the ratios that provide the quick measure of the liquidity position or the ability of the firm to meet its short-term obligation. In other words, liquidity ratios are the indicator of short-term solvency of financial strength of the firm. i. Current Ratio:Current ratio establishes the relationship between current assets and current liabilities. It is computed by dividing current assets by current liabilities. Current ratio can be calculated as follows:Current ratio= Current assets Current liabilities Current assets include all those assets, which in the form of cash or can be converted into cash in the normal course of usual business not exceeding a period of one year. Likewise current liabilities include all obligations maturing within a year. 1

ii. Quick Ratio:As a more penetrating or refined nature of liquidity, quick ratio expresses the relationship between quick or liquid assets and current liabilities, and is calculated by dividing quick or liquid assets by the current liabilities as:Quick ratio= iii. Cash Reserve Ratio:The liquid assets that a central bank or other body mandates that a bank keep at all times. The reserve ratio is expressed as a percentage of the bank's total deposits. The reserve ratio exists to ensure that the bank is able to pay an unusually high number of withdrawals on demand accounts should that event occur. It also helps ensure that the bank does not over-leverage itself. In some countries, increasing or decreasing reserve ratios may be used to help control the money supply. The liquid assets that a central bank or other body mandates that a bank keep at all times. The reserve ratio is expressed as a percentage of the bank's total deposits. The reserve ratio exists to ensure that the bank is able to pay an unusually high number of withdrawals on demand accounts should that event occur. It also helps ensure that the bank does not over-leverage itself. In some countries, increasing or decreasing reserve ratios may be used to help control the money supply. iv. Turn Over Ratio:Resources of an enterprise as invested in assets with a view to generate income mainly through sales. Activity ratios reflect the efficiency with which an organization manages and uses assets in generating sales. These ratios indicate the degree of conversion of assets into sales. The quicker the conversion in conformity with the investment, the more efficient the management of the assets. Unless the end of year asset figures are adequate approximations of the average levels for the year, the average of assets levels at the beginning of the year and at the end of year are appropriate while making computations. In the absence of information regarding the beginning levels of assets, the end of year levels service the purpose well. The usual ratios computed under this group comprises(a) inventory turnover ratio (b) debtors or accounts receivable turnover ratio (c) average collection period or age of Quick assets Quick liabilities

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receivables (d) fixed assets turnover ratio (e) total assets turnover ratio (f) capital employed turnover ratio.

Chapter 4 SWOT AnalysisSWOT Analysis is one of the effective methods to formulate the plans, policies and strategy, of an organization .With the help of this tool one can be familiar with the strength, understand the weakness and cope with the opportunities and threats. Below are some of the strength, weakness opportunities and threats of the Himalayan bank. Strength Entrusted to qualified youth to shape the modern banking in Nepal Proper mechanism to maintain banking sanctity and ethics Conduction of briefing session and trainings for the employees Maintenance of corporate social responsibility Sound working environment for employees Accessibility of modern technology (hardware, software etc) Highly experienced employees Good interaction within professional organization. Weakness: Fewer branches to provide banking facility slow document processing slow costumer complains less promotional campaigns the departments within the organization is increasing More time consumption to fulfill the afore said announcement some complains that the ATM machines are but sanctioning and relative long document processing time is also the area in which the bank must focus upon. Opportunities: Banking awareness among the people can increase the banking transaction use of modern and up to date technology can improve the functioning Youths can be entrusted for the processing of the banking activities Can be emerged as bank with new concept The mixed economy of Nepal is also an advantage as it has helped to remain aloof from, the global financial crisis that is seriously influencing capitalist economies The political change and way toward s stability through a new constitution will certainly benefit the business.

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Threats: Emerging new banks with new technology and ides Unethical competition and political instability Instable rules and regulation regarding banking sector Risk from the impact of global economic recession in the local market Risk from the fluctuation in the economic environment of the country risk emanating from excessive competition as a result of increase in number of banks obstacles in our way ( lack of advanced education bank needs to take advantage of opportunities ) the global financial crisis that is prevailing in the world also influence the bank

Chapter 5 Findings and Recommendations:After the financial analysis and SWOT analysis of the Himalayan Bank Limited, following findings and recommendations were made: Findings i) Himalayan Bank Limited is running successfully for several years since the year of establishment. ii) iii) iv) v) vi) vii) viii) ix) Continuity is given to recovery of written off loans. Since after its establishment it is in a state of point and continuously going on the same task. The deposits on bank are increasing tremendously. Bank is continuously increasing the number of branches. Also working in sector of business with different social activities. Also helping in economy of the country by contributing a lot of money through the tax. Technically also the bank is able to introduce and other ancillary services. Continuity is given to installation of ATMs in different regions.

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Recommendations i) With the view of the customers care of the morning and evening counter and services should be available. ii) iii) iv) v) vi) vii) Continuity must be given to recovery of written off loans. Bank should utilize the resources effectively in interest generating sectors. Bank should invest maximum fund on risky assets. Introduction and innovation of new products with new schemes is required. Training to the staffs should be provided to make the work effective. While leading fund to customer banks should evaluate and examine the credit worthiness of customers.

BIBLOGRAPHYBook references Pant PR and Wolf, HK,Social Science Research and Thesis writind ,Budha publication,kathmanu Other references www.himalaynbank.com.np www.nepalstock.com www.google.com www.wikipedia.com www.britannica.com Library search

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Table of Contents Chapter1......................................................................................................................................................1 Introduction.............................................................................................................................................1 1.1 Background of the study................................................................................................................1 1.2 Objectives of the study..................................................................................................................1 1.3 Significance of the study................................................................................................................2 1.4Limitations of the bank...................................................................................................................3 Chapter2......................................................................................................................................................4 Literature review.....................................................................................................................................4 2.1 Brief History of the bank...............................................................................................................4 2.2About Himalayan bank...................................................................................................................5 2.3 Vision of the bank..........................................................................................................................6 2.4 Mission of the bank.......................................................................................................................6 2.5 Objectives of bank:........................................................................................................................6 2.6 Product and services:.....................................................................................................................6 2.7 Organisation structure....................................................................................................................9 2.8 Department:.................................................................................................................................10 Chapter 3...................................................................................................................................................14 Data analysis and presentation...............................................................................................................14 Ratio analysis:-......................................................................................................................................14 3.1 Profitability Ratios:-....................................................................................................................14 3.2 ) Liquidity Ratio:-........................................................................................................................25 Chapter 4...................................................................................................................................................26 SWOT Analysis.....................................................................................................................................26

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Strength.............................................................................................................................................26 Weakness:..........................................................................................................................................27 Opportunities:....................................................................................................................................27 Threats:..............................................................................................................................................27 Chapter 5...................................................................................................................................................28 Findings and Recommendations:...........................................................................................................28 Findings.............................................................................................................................................28 Recommendations.............................................................................................................................28 BIBLOGRAPHY.......................................................................................................................................29BIBLOGRAPHY

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