Liquidity analysis of Kist Bank Limited

7/24/2019 Liquidity analysis of Kist Bank Limited

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C h a p t e r -

I N T R O D U C T I O N

1.1 Introduction

1.1.1 Historical Background of Kist Bank Ltd.

The Kist Merchant Banking and finance limited (Bittiya Sanstha) was

incorporated in 2!" B#S# as a !!th company $nder the financial company %ct&

licensed 'y the epal astraya Bank (Central Bank of epal) to $ndertake financial

ser*ice in the co$ntry# The company has commenced its operation from 2+st ,e'r$ary

2 and the Kist Merchant Banking and ,inance .imited (Bittiya Sanstha) has 'een

transformed in to Kist Bank .imited on dated 2/th Baishak 200 B#S# same company

%ct& licensed 'y the epal astraya Bank (Central 'ank of epal) to $ndertake

Banking ser*ice in the co$ntry#

Kist Bank .td# has !+ 'ranches with /!+ staffs at the end of fiscal year 20010in which "#/03 staffs are female and 0#!/3 staffs are male# 4p to fiscal year of

%sar month& + staffs (2"#/"3) are holding Master degree& staffs (+#!!3) are

holding Charactered %cco$ntant degree& +/5 staffs (2#5+3) are holding Bachelor

degree& " staffs (+"#"!3) are holding 62 degree& staffs (#+3) are holding S#.#C#

degree and / staffs (5#503) are $nder S#.#C# of total staffs (/!+)#

K7ST Bank .td# is committed to pro*ide *ario$s financial ser*ices to its

c$stomers# The company encompasses a range of ser*ices& each catering to a specific

need or segment of the c$stomer# The company has an $n'roken track record of

di*idend payment since its first p$'lic iss$e of share# The company has set o$t theo'8ecti*e of reaching o$t to the general people with a host or prod$ct and ser*ices that

is e9pected to 'e helpf$l to them in their path to prosperity# :*er the *ery short period

of time& the company has achie*ed significant s$ccess in e9ec$ting this o'8ecti*e and

has created a tremendo$s sense of loyalty amongst its c$stomers# ;fficiency in

operation and has created a tremendo$s sense of loyalty amongst its c$stomers#

;fficiency in operation& integrity and a strong foc$s on creating the needs of the

indi*id$al people thro$gh high


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1.1.2 Ob!cti"! of KI#T Bank Ltd.

;*ery organi=ation has 'een opened with a certain o'8ecti*e and K7St 'ank has

also some o'8ecti*es#

a# To pro*ide competiti*e to all c$stomer thro$gh competent and processional and

e9perienced staff#

'# To reclaim leadership with in the national financial comm$nity and share its

e9perience to other financial instit$tion or companies#

c# To contin$e to maintain leading share of 'anking sectors with a significance

presence in all geographical areas in the co$ntry#

d# To con*enient to the people a'o$t the economics progression of the co$ntry and

their family to f$lfilling that need 'y pro*iding of the co$ntry#

e# To render ser*ice to the people whether rich or poor and to contri'$te to the

nation>s de*elopment with also need s$pport and 'est wishes of all which it hasconfident will 'e fo$rth coming#

f# To pro*ide technologically inno*ati*e ser*ices to its c$stomer#

1.1.$ #!r"ic!s %ro"id!s b& KI#T Bank Ltd.

Kist Bank .td# is well-e


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*iii# 7n*estment ad*ice#

i9# 7n*estment ad*ice#

9# ,ree %BBS facilities

9i# Ae'it card facilities

9ii SMS Banking facilities

1.1.' (cti"iti!s of KI#T Bank Ltd.

Kist has following ma8or acti*ities?

i# ario$s deposit schemes

ii# ario$s loan and ad*ances

iii# Market maker for go*ernment sec$rities

i*# on-f$nd 'ased ser*ices like iss$e of g$arantee etc#

The professional and friendly ser*ices are e9tended 'y the depth and strength of

the entire K7ST staff with access to the 'road range of financial ser*ices for the

'$siness and indi*id$al needs of the c$stomers# K7ST emphasi=es long-term c$stomer

relationship 'ased on *al$e-added ser*ices#

1.1.) Board *!+b!rs of KBL.

+# rof# ;r# Direndra Man radhan ? Chairman

2# Kamal rasad @nawali ? MA1C;:

# Chandra K$mar ai ? Airector

/# a8endra Shakya ? Airector

!# @ita @a$tam for E;A 7n*estment ? Airector

0# am rasad Aahal ? Airector

# @yan Bahad$r Fisi ? Airector

5# achana T$ladhar ? Airector

"# Ar# Aandpani ? Airector (Specialist)

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1.1., *anag!+!nt T!a+ of t-! KBL

+# Bhesra8 Khatiwada Chief ;9ec$ti*e :fficer (C#;#:#)

2# Balan Singh Aharti %ssistant Managing Airector

# Kamal rasad @awali Managing Airector1C;:

/# rag$n Shrestha Aep$ty @eneral Manager

!# Bal K$mar andey Company Secretary

0# S$rendra Chandra ,inance Aept#-Dead

# an8an andey Branch Co-ordination-Dead

5# M$k$nd S$'edy Branch-Manager (Dead :ffice)

"# ishi am e$pane Comm$nication G Tech# Aept# Dead

+# Mahesh Bhattrai Tracery Aepartment Dead

++# S$desh Ae*kota .oan Aept#-Dead

+2# 7shwar Karki DM-Dead

+# en$ rasad andey Aepots Marketing Aept# Dead

+/# Madh$s$dan Sharma Branch Manager Dead :ffice

+!# Man8ayra8 andey Credit isk :fficer

+0# Madha* rasad egmi .egal Aeposit :fficer

1.1. Branc-!s of t-! KI#T Bank/

1. *ain Branc-

%namnagar& Kathmand$

hone o#? +-/22!

,a9 o#? +-/20/0

2. But0al Branc-

Milan Chowk& B$twal

hone o#? +-!//25

,a9 o#? +-!/0""

$. %ok-ara Branc-

Sa'hagriha Chowk& okhara

'. Lalitur Branc-

Fawalakhel& .alitp$r

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hone o#? 0+-!2///

,a9 o#? 0+-!2+//

hone o#? +-!!0//

,a9 o#? +-!!5!!

). N!0 Road Branc-

ew oad& Kathmand$

hone o#? +-/2+& /2+/

,a9 o#? +-/22!

,. #uk-!d-ara Branc-

S$kedhara& Kathmand$

hone o#? +-/0!!"

,a9 o#? +-/0!!/

. N!algun Branc-

S$rketh oad& epalg$n8& Banke

hone o#? 5+-!20+

,a9 o#? 5+-!20

. Biratnagar Branc-

angeli oad& Biratnagar

hone o#? 2+-//!

,a9 o#? 2+-//!0

3. *anigra+ Branc-

Manigram& $pandehi

hone o#? +-!02"

,a9 o#? +-!02"

14. 5ulari&a Branc-

@$leriya& Bardiya

hone o#? 5/-/2+++

,a9 o#? 5/-/2++

11. It-ari Branc-

Biratnagar oad& 7thar

hone o#? 2!-!500

12. B-air0a-a Branc-

Siddharthanage& Bhairahawa

hone o#? 2!-!50

1$. K-airani Branc-

Ae*daha Khaireni& $pandehi

hone o#? +-!!

,a9 o#? +-!22/

1'. Da+ak Branc-

Fhapa-+& Aamal

hone o#? 2-!5+0

,a9 o#? 2-!5//0

1). Birta+od Branc-

Dikkola oad& Birtamod

hone o#? 2-!/2/!

,a9 o#? 2-!/!/

1,. Bagar Branc-

Bager okhara

hone o#? 0+-!2"+/

,a9 o#? 0+-!2"+!

1. Nara&angad- Branc- 1. Dolk-a Branc-

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arayangath Chitwan

hone o#? !0-!!20

,a9 o#? !0-!!25

Charikot&Aolkha

hone o#? /"-/2+5/

,a9 o#? /"-/2+5/"

24. Kot!s-0ar Branc-

Koteshwor Kathmand$

hone o#? +-//"50

,a9 o#? +-//"505

21. #ina+angal Branc-

Sinamangal Kathmand$

hone o#? +-//""5"0

,a9 o#? +-//5//0

22. D-aran Branc-

Mahendrapath& Aharan

hone o#? +-//"50

,a9 o#? +-//"505

2$. Da+auli Branc-

Aama$li& Tanah$

hone o#? 0!-!0+5

,a9 o#? 0!-!0+5/

2'. Tad-i Branc-

Tandhi& Chitwan

hone o#? !0-!00

,a9 o#? !0-!05

2). B-aktaur Branc-

S$rya'inayak& Bhaktap$r

hone o#? +-00+""

,a9 o#? +-00+0"+

2,. Darbar+arg Branc-

Aar'armarg& Kathmand$

hone o#? +-/22//15!/

,a9 o#? +-/220"/

2. 6anakur Branc-

Mills %rea& Fanakp$r

hone o#? /+-!2"0

,a9 o#? /+-!2"

2. K-ic-aok-ari Branc-

eople>s la=a Khichapokhari

hone o#? +-/+!!"1+

,a9 o#? +-/+!!++

23. 6orati Branc-

Forpati& Kathmand$

hone o#? +-//5/"+!

,a9 o#? +-//0/20

$4. B-ais!ati Branc-

Sai'$

$1. Birgun Branc-

%darshnagar& B$rg$n8

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hone o#? +-!!"25155

,a9 o#? +-!!"25"

hone o#? !+-!!2

,a9 o#? !+-!!2

$2. *angal Ba7ar Branc-

Tangal& .alitp$r

hone o#? +-!!2"0/

,a9 o#? +-!!!220"

$$. %ala Branc-

Makhan Tole& Tansen

hone o#? !-!22+121

,a9 o#? !-!22/

$'. *a-!ndranagar Branc-

Main Ba=ar& Bhimd$tta

agarpalika

hone o#? ""-!2215

,a9 o#? ""-!22"

$). D-angad-i Branc-

@odawari oad& Ahangadhi

hone o#? "+-!2"1+

,a9 o#? "+-!2"2

$,. (+arat- Branc-

%matpath& B$twal

hone o#? +-!/+++12

,a9 o#? +-!/++

$. Kali+ati Branc-

Kalimati& Kathmand$

hone o#? +-/25!/!1+5

,a9 o#? +-/25!"

$. T-a+!l Branc-

arsingh Chow& Kathmand$

hone o#? "-/2!500155+

,a9 o#? +-/205"+

$3. Kalanki Branc-

Kalanki la=a

hone o#? "-/25552

,a9 o#? +-/25/!

'4. Tulsiur Branc-

Chandani Tole& T$lsip$r

hone o#? 52-!0+5015

,a9 o#? 52-!0+55

'1. Do-ari Branc-

Bank oad& Aohari

hone o#? 52-!0+5015

,a9 o#? 52-!0+55

'2. 5ongu0o Branc-

@ong$wo& Kathmand$

hone o#? +-/5"01/5"

,a9 o#? +-/5"5

'$. *a-ragun Branc-

arayangopal Chowk& Kathmand$

hone o#? !-!20!51!20!5+

,a9 o#? !-!20!52

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''. Hat!uda Branc-

Main oad& Deta$da

hone o#? !-!20!51!20!5+

,a9 o#? !-!20!52

'). D-ading Branc-

Ahading Besi& ilkanth

hone o#? +-!2+51"

,a9 o#? +-!2++

',. #0a+b-u Branc-

Dalchowk& Kathmand$

hone o#? +-/!/215

,a9 o#? +-/!5!

'. #aura-a Branc-

Sa$raha& Bache$li

hone o#? !0-!5//

,a9 o#? !0-!5///

'. #ank-+ul Branc-

Sankhm$l& Kathmand$

hone o#? +-/5+2

,a9 o#? +-/5+05

'3. #atdobato Branc-

Chapagow Chowk& .alitp$r

hone o#? +-!!!2+

,a9 o#? +-!!!22

)4. Kausaltar Branc-

Ka$saltar& Bhaktap$r

hone o#? +-00+"100+/

,a9 o#? +-!!!22

)1. Ban!s-0or Branc-

Ae*kota& Kathmand$

hone o#? +-//"22+51+"

,a9 o#? +-//"22+2

1.2 #tud& Background/

This report is my assignment as a partial f$lfillment of internship co$rse for the

re


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The main p$rpose and o'8ecti*e of this st$dy is to know and acs responses towards the ser*ices pro*ided the 'ank#

0# The determine the areas in the 'ank where it need to enhance its ser*ices toimpro*e relationship with c$stomers and pro*iding achie*a'le sol$tion to

increase the le*el of satisfaction#

# To e9plore the s$ggestion for impro*ing and implementing them for 'etter

ser*ices to its *al$ed c$stoms#

1.' #tat!+!nt of robl!+/

The main aim of the commercial 'ank is the ma9imi=ation of profit and

minimi=ation of the cost as far as possi'le the mo'ili=ation of reso$rce they ac


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1.) Li+itation of t-! #tud&/

This st$dy has 'een cond$cted appropriately howe*er there were se*eral

complications which arose indigeno$sly# %t this research tries to 8$stify the e*ent in

accordance with the well known or already esta'lished tools and techni


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1. R!s!arc- D!sign/

esearch design is taken as less descripti*e '$t more prescripti*e 'eca$se the

historical secondary data has 'een employed of analysis# ,or concept$al framework

literat$re part more partially p$rpose# Some s information ha*e 'een proceed

thro$gh *ario$s process like a$diting& ta'$lating& and res$lt has 'een interpreted in the

form of ratio& percentage& and different types of diagram for clear *iew#

7n the a'o*e diagram& the researcher at the *ery first hand de*elops the

concept$al framework and in order to s$pport and 8$stify this& researcher generates

some a$thentic research


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The a'o*e diagram shows the 7nternship eport research process of st$dy while

preparing on ITotal Aeposit of K7ST Bank .td#I

1. Data Coll!ction/

There are se*eral methods of data collection '$t most the common and $sesones are primary and secondary methods# %ccording to Seltiw& write the looks as


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'# The pro'lem of non-a*aila'ility of re


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C-at!r9 ::

%R;#;NT(TION (ND (N(Ls Li=uidit&

.i


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2.' .( D!osit In"!st+!nt Ratio ?DIRA

Aeposit in*estment ratio shows the amo$nt in the 'ank after pro*iding loan o$t

of deposit collected# %ccording to Ndeposit mi9 strategyL& c$rrent acco$nt& sa*ing acco$nt

G fi9 acco$nt need +3& -/3 G !-+3 of li


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2.'.B Curr!nt Ratio

The relationship 'etween c$rrent assets and c$rrent lia'ilities is known as

c$rrent ratio# Digh c$rrent ratio indicates 'etter li

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8igur!9 2

7n the gi*en fig$re 9-a9is shows the years from 20!100 to 20"1 in whichthe position of c$rrent ratios and y-a9is shows the times of c$rrent ratios which is

calc$lated in a'o*e ta'le# The c$rrent ratio is high in ,#H#0010# So& it means this year

the li


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The fi9ed deposit is long-term lia'ility# Digher c$rrent lia'ilities ca$se lower

li


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The a'o*e ta'le shows the decreasing ratio of Sa*ing deposit with respect to

total deposit& which certified the declining li


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The a'o*e ta'le shows the decreasing ratio of Sa*ing deposit with respect to

total deposit& which certified the declining li


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m$ch& which is not profita'le for the 'ank# ow the a'o*e are presented as 'ellow in

graph? -

2.'.5 %rofitabilit&

K7ST Bank is a commercial instit$tion ha*ing profit moti*e # 7 pro*ides to

its c$stomer and get ser*ices charge in ret$rn# Bank charges interest on its lending and pay

interest on deposit collected# B$t it accepts deposit at a low rate and pro*ides .oan o$t

higher rate# This difference 'etween amo$nts of interest is gross profit and residential

amo$nt of after ded$cting operating e9penses is net profit# Digher profit ca$ses higher

li


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Tabl! No 9

8.


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sourc! / 000.kistbank.co+.n

%ccording to a'o*e ta'le& that represents the inward remittance is higher than

o$tward remittance# 7t means 'ank sho$ld 'e kept more li


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C-at!r9::I

# U**(R


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#tr!ngt-?

A$ring my st$dy period&7 ha*e fo$nd K7ST Bank Fanakp$r& strength are as follows?

i# 7t has moderately strong financial position#

ii# .arge no of acco$nt holder#

iii# .arge market si=e#

!akn!ss/

i# 7t has not comp$teri=ed system#

ii# atio modern is not introd$ced in 'ranch#

iii# 7t has a rented '$ilding#

Oortunit&/

Da*ing good financial e9istence&this 'ank has not got any reasona'le e9ploitation

opport$nities#

T-r!at/

Digh competation&scattered Market si=e&sl$ggish economic growth&

political insta'ility& wrong policies of K7ST Bank& 'adwanes m$shrooming of

financial instit$tion are the threat of this 'ank#

$.2 #ugg!stion and R!co++!ndation?

There are some s$ggestion and recommendation& which are 'eing deri*ed from

st$dy#

(s !r a"ailabilit& facts?

i# Since the li


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Liquidity analysis of Kist Bank Limited

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