AN ANALYSIS OF

CAPITAL STRUCTURE OF
STANDARD CHARTERED BANK NEPAL LIMITED
Kathmandu.

A Project Work Proposal

Submitted By:
Sungava Samal
Symbol No:
TU Regd No: 7-2-0432-0031-2013
Campus Roll No.: 1270015
Group: Finance

Submitted To:
Madan Bhandari Memorial College
Binayaknagar, Kathmandu
Faculty of Management
Tribhuvan University

In Partial Fulfillment of the requirement for the degree of

Bachelor of Business Studies (BBS)
Kathmandu, Nepal
Feb 2017.

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 Table of Contents

1. Introduction...................................................................................................................2
1.1 Background of the study.............................................................................................2
1.2 Statements of Problems...............................................................................................3
1.4 Limitations of the study...............................................................................................4
1.5 Research Methodology................................................................................................4
1.5.1 Introduction...............................................................................................................4
1.5.2 Research Design........................................................................................................4
1.5.3 Sources of Data..........................................................................................................5
1.5.4 Methods of Data Analysis.........................................................................................5
1.6 Report Structure..........................................................................................................6
1.7 Literature Review........................................................................................................6
REFERENCES..................................................................................................................6
APPENDICES....................................................................................................................6

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1. Introduction

1.1 Background of the study

Bank is a financial institution, which plays vital role in the development of the major
contributor in the development of the national economy of the country. The function of
banks are not only accepting deposits and granting loans but also, including wide range
of services to the society, to facilitate the growth of trade, commerce, industry and
agriculture of the national economy. Commercial banks are the financial institutions
which deal in accepting deposits from persons and institutions, provide interest,
formulate capitals and grant loans against securities that help to remove the deficiency of
capital.

As there has been number of commercial banks established, the present aim is to analyze
the financial performance of standard chartered Bank Ltd.

Standard Chartered has a history of over 150 years in banking and operates in over 70
countries. The global network of standard chartered group gives the bank a unique
opportunity to provide international banking services in Nepal. Standard Chartered Bank
Nepal Limited was established and is in operation since 1987. It was initially registered
in Nepal with 50% shares held by Standard Chartered Grind lays Bank, 33% by Nepal
Bank Ltd., and 17% by the Nepalese public. Today the Bank is an integral part of
Standard Chartered group who has 75% ownership in the company with 25% shares
owned by the Nepalese public. The Bank enjoys the status of the largest international
bank currently operating in Nepal. Standard Chartered Group employs 30,000 people in
over 500 locations in more than 55 countries in the Asia Pacific Region, South Asia, the
Middle East, Africa, the United Kingdom and the Americas. It is one of the worlds most
international banks, with a management team comprising 79 nationalities.

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1.2 Statements of Problems

This chapter focuses on problems faced while preparing this proposal. Every task needs
an appropriate level of effort, time and cost; which are also needed here. The major
problems faced while preparing this proposal are as follows:

What is the financial peformance of Standard Charatered Bank Nepal

Limited?
Do Standard Charatered Bank Nepal utilized its assests eficiently ?
How are they aware with the service provided by the bank?
Are the customers really being facilitate with the banks facilities?
What are the customers major expectations from the Standard Charatered
Bank Nepal Limited?

1.3 Purpose of the Study

The main objectives of the study are to fulfill the partial requirement of T.U. (department
of management) for the degree of bachelor of business study. Based on the analyzed the
capital structure, this study will suggest for the capital need and its management for the
current year. To achieve the main purpose, following sub objective will set out:

To evaluate the composition of capital structure of Standard Charatered Bank

Nepal Limited with respect to its net worth.
To show the trend of composition and capital of Standard Chartered Bank
Nepal Limited.
To evaluate the deposit with respect to total liabilities and total capital.
To evaluate the earning per share.

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1.4 Limitations of the study

This study will simply conduct for the partial fulfillment of the requirement for the
degree of the business studies (BBS) which can not cover all the dimension of the all
subject matter and resource and time period is also limited. The report can comprise some
mistake which might cause to misinterpretation of the results. The other limitation of the
study is listed below:

Data will contain mostly of the annual report of the bank through fiscal year
2011/12 to 2015/16.
A too wide area of investingation is impractical and will lead to problems.
Specify the boundaries of research.
Primary and secondary data will use.

1.5 Research Methodology

1.5.1 Introduction
Research Methodology is the process by which the problems are being solved through
planned and systematic dealing with the collection of data by analyzing and
interpretation. The proper selection of the method is to be used for research, which is one
of the most important elements of field report.

1.5.2 Research Design

The main purpose of this study will be to evaluate the capital and liabilities position of
the Standard Chartered Bank Nepal Limited. This study attempts to will have the trends
of various components of capital and liabilities side of the balance sheet of Standard
Chartered Bank Nepal Limited.

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 1.5.3 Sources of Data
The data which will collect to analyze in this study are conducted on the basis of primary
as well as secondary data. This study will base on the data that were collected from the
staff of SCBNL, Baneshwor and on the facts collected from the Annual Report of
SCBNL. The campus library will be very helpful in providing the books needed for the
study.

1.5.4 Methods of Data Analysis

The data which will analyzed by using different financial tools and techniques along with
some statistical tools and also analyzed by diagrams wherever useful.
TOOLS USED:
Financial tools:
Share capital to total liabilities ratio.
Reserve and surplus to total liabilities ratio.
Total deposit to total liabilities ratio.
Current liabilities to total liabilities ratio.
Borrowing to total liabilities ratio.
Net worth to total liabilities ratio.
Statistical Tools:
Average Mean.
Standard Deviation ().
Coefficient of Variation.
Karl Pearsons Correlation Coefficient ().

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1.6 Report Structure

This study will have organized into 5 different chapters in order to make the study easy to
understand. The introduction, literature review, research methodology, data presentation
and analysis and summary, conclusions and recommendation are the major chapters
included under this study.

1.7 Literature Review

Review of literature comprises upon the existing literature and research related to the
present study with a view to find out what had already been studied. According to Wolf &
Pant The purpose of the reviewing the literature is develops some expertise in ones
area, to see what new contribution can be made and to review some idea for developing
research design. This portion will be divided into three parts:-
a) Conceptual Framework
b) Review of Related Studied
c) Review of thesis
d) Research Gap

REFERENCES
APPENDICES