A STUDY ON

VARIOUS RATIO ANALYSIS OF GLOBAL IME BANK BUTWAL BRANCH

A Proposal on Project Report

BY
Yamkala Bhandari
T.U Regd .No : 7-2-398-52-2020
Roll no: ………………………….
Pashupati College

Submitted to
Faculty of management
Tribhuvan University ,Kathmandu

In partial fulfillment of the requirements for the degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Tilottama – 16, Bohiya

March,2025
1.1 Background of the Study
Ratio is an expression of quantitative relationship between two figures or numbers. It
is expressed when one figure is compared with another. Ratio analysis determines and
interprets the numerical relationship between figure of financial statement. Hence,
ratio is used for evaluating the financial position and performance of a firm.
"A ratio is an expression of the quantitative relationship between two numbers." -
Wixom, Kell and Bedford.
"A ratio is the relationship of one amount to another expressed as the ratio of or as
simple, fraction, integer, decimal fraction or percentage.
Financial analysis is detailed study or examination of financial statement of any
financial institution to analysis its comparative strengths and weakness. Financial
analysis involves analyzing financial statement proposed in accordance with
generally accepted principles to ascertain information concerning to the magnitude,
timing and risking of future cash flow and reports what happened to the firm in terms
of sales, assets, liabilities, earnings, dividends and so on over the specific time period
i.e., at the end of each fiscal year thus financial statement is the most accurate source
to recognize and analysis the performance of company as it represent the records of
former financial performance and the achievement made over the years. Similarly it
shows the firm institution’s past growth in sales and the level of development that it is
going to undertake in coming years. So a careful analysis of financial statements
enables a manager and concern people to evaluate relative strength and weakness of
the firm in relation to various aspect of firm’s financial performance.

1.2 Problem Statements

Financial institution and market are mostly affected by the globalization. NRB has
recently invited the International Wholesale Financial Service Provider from different
part of the world to install their branches in Nepal and this activity soon takes place
after 2010 AD. By the same time NRB has also promoted the policy of Bank Merging
by which two or more banks of the country unites so that they can reduce their
overhead costs and other expenses and compete strongly with such banks maintaining
their status as before.
All the above contents explain here the importance of financial analysis. The uses of
financial ratios and their significant. The importance of this analysis is equally even
from every aspect. Shareholders analyze these statements to have information about
the earning of the company, similarly stakeholder shows great concern about the
overall strength and weakness of the firm.

1.3 Objectives of Study

Effective planning and control are central to enhancing enterprise value. Financial
plan may take many firms but any good plan must be must be related to the firm’s
existing strength and weakness. This strength must be understood if they are to be
used to proper advantage and weakness must be recognized if a corrective action is to
be taken. The basic purpose of this report is to analyze the financial statement of
Global IME Bank, Butwal Branch finding out various ratios so as to determine its
historical performances and current financial conditions.

1.4 Review of Previous Study

Ratio is the expression of one figure in terms of another. It is the expression of the
relationship between the mutually independent figures. It is simple mathematical
expression of the relationship of one item to another. Absolute figures alone convey
no meaning unless they are compared with past research. Accounting ratios how the
interrelationship existed among various accounting data.

According to Wixon, Kell and Bedford, “A ratio is an expression of the quantitative

relationship between two numbers”.
According to Kehler, “A ratio is the relationship of one amount to another expressed
as the ratio of or as a simple fraction, integer, decimal fraction or percentage”.
According to I.M. Pandey, “A ratio is defined as the indicated quotient of two
mathematical expressions and as the relationship between two or more things.” So,
Ratio Analysis is taken as a widely used tool for Financial analysis, It is a study of
ratio & between various items or groups of items in financial statements.
Therefore, ratios refer to the numerical or quantitative relationship between two items
or variables. In simple language ratio is one number expressed in terms of another
and can be worked out by dividing the number to another.
1.5 Research Methods
Research methods are the strategies, processes or techniques utilized in the collection
of data or evidence for analysis in order to uncover new information or create better
understanding of a topic.
1.5.1 Population and sample
As there are several branches of Global IME Bank through out the country this study
is based only on the financial performance of Global IME Bank, Butwal Branch. The
project work explores the financial review of Global IME Bank and describes the
systematic collection and presentation of the data to form a clear image of specific
event i.e. the Financial Analysis of Global IME Bank, Butwal.

1.5.2 Sources of data and collection procedure

The major data used in this project report are derived from the secondary source and
some analysis are based on the primary source in order to meet the requirement of
this project work report. The detailed data sources are as follows:-
i) Secondary data
As it is already mentioned that mass coverage of this project work report is based on
secondary source of data collection. Without which the financial analysis of Global
IME Bank, Butwal branch was impossible to abstract. Secondary data sources are as
follows:-
• Annual report of Global IME Bank for each sample period.
• Different books, newspaper and report published in behalf of Global IME
Bank.
1.5.3 Method of presentation and analysis
Merely the data collection is not a full featured project work the way of representing
it must be adopted in such a way that they can be easily understood. Method of
analysis are the modes or tools on which the conclusion is based. It also facilitate very
easy comparison of data and information. The different tools brought up to prepare
final report are Tables, Bar diagrams,Trend line, Simple Average, Simple Percentage,
Correlation ,Financial ratios.
1.6 Limitations of the Study
Limitation of any study refers to the extent to which the study is made concentrated
thus it is a boundary line which narrows the area of study into a specific
circumstance. Thus, if we do not specify or limit our study it becomes vague and
incomplete able. Below mentioned are the limitation which is applied during the
project work report prepared on financial analysis of Global IME Bank, Butwal
Branch.
• The study is based on only one financial institution i.e Global IME Bank,Butwal
Branch.
• The study covers the period of five financial years.
• To present and analyze the data, limited tools and techniques are used.
• This study is based on secondary data and some information is assisted as primary
data.
• This study simply cannot evaluate the overall position of Global IME Bank.
 REFERENCE
➢ Agrawal, G.R. , Project Management in Nepal; Kathmandu, MK Publisher
➢ Annual Report , Global IME Bank.
➢ Bajracharya, Bhanu Chandra , Business Statistics & Business Mathematics;
Kathmandu, M.K.Publisher and Distributors.
➢ Dangol, Ratna Man & Prajapati Keshab , Financial Analysis & Planning
Accounting; Kathmandu, Taleju Publication.
➢ Munankarmi, Shiva Prasad , Text Book of Accountancy & Auditing;
Kathmandu, Educational Enterprises (P) Ltd.
➢ Pant, P. R. , Fieldwork Assignment & Report Writing; Kathmandu, Buddha
Academic Enterprises Pvt. Ltd.
➢ Rana, Surya , Financial Management; Kathmandu, Ratna Pustak Bhandar.
Thapa, Sher Jung & Singh Hridaya Bir .
➢ Website of Global IME Bank; www.globalimebank.com