Effectiveness of Digital Payment System

in Educational Institutions

A Proposal submitted in partial fulfillment

of the requirement for Masters in Business Studies

Submitted to:
Dr. Bhawana Pokhrel
Prithibi Narayan Campus
Submitted by:
Susmita Acharya
Roll No: 163

Reg No:
 Table of contents
1. Introduction................................................................1-3
1.1 General introduction .....................................................1
1.2 Statement of the problem ...............................................2
1.3 Objective of the study ...................................................3
1.4 Significance of the study................................................3
1.5 Limitation of the study ..................................................4
2. Literature Review..........................................................5
3. Research Methodology..................................................6-7
3.1 Research Design.........................................................6
3.2 Nature and sources of data .................................................6-7
3.3 Methods of data
Analysis..................................................................................................12
Reference.........................................................................13
 INTRODUCTION

1. Introduation

Performance refers to the accomplishment of given task measured against preset standards of
accuracy, completeness, cost, and speed in other words,it refers to the degree to which an
achievement is being or has been accomplished. In the words of Frich Kohlar “The performance
is a general term applied to a part or to all the conducts of activities of an organization over a
period of time often a reference to past or projected cost efficiency, management responsibility
or accountability or the like. Thus, not just the presentation, but the quality of results achieved
refers to the performance. Performance is used to indicate firm’s success, conditions, and
compliance. Financial performance is a subjective measure of how well a firm can use assets
from its primary mode of business and generate revenues. The term is also used as a general
measure of a firms overall financial health over a given period. Financial performance in boarder
sense refers to the degree to which financial objectives being or has been accomplished.

The important of financial performance is to give information about the performance, financial
strength and alteration in the financial position of the company which is beneficial for many
users in their economic decision. Another important analysis of financial performance is to
identify potential problem area and troubleshoot those. Similarly, to describe the process of
assessing the financial performance of the strategic center within a framework of sectoral
environment in which they operate, and then determine the mechanism and situations change
needed to improve its strategic decision.

Financial ratio can be divided into four types of liquidity debt, profitability and coverage. Each
of this type has special analyst. This ratio also helpful for managerial control and providing a
better understanding of what outside suppliers of capital expect in the way of financial condition
and performance. The usefulness of the ratio depends upon the ingenuity and experience of the
financial analyst who employees them. By themselves financial ratios are fairly meaningless they
must be analyzed on a comparative basis.
 A comparison of ratio of same firm over in important in evaluating changes and trend’s in the
firm’s financial condition and profitability. This comparison may be historical. It may include an
analysis of the future based upon projected financial statements. Ratios may also judge in
comparison with those o similar firms in the same line of business and when appropriate, with an
industry average, much can be gleaned from a thorough analysis of financial ratios.

1.1 General Introduction

Introduction
Garima Bikas Bank Ltd. was established by a group of enthusiastic, dedicated and successful
professionals and entrepreneurs from different fields including business, teaching, engineering,
doctors, banking, accounting, management etc. We are multicultural, multilingual members of
our communities. Our rich diversity is our strength.

Garima Bikas Bank employees are approachable, personable and knowledgeable. We encompass
an ever expanding range of business expertise and personal experience. We have a long history
and our ability to adapt and grow has enabled us to respond to changing markets, explore new
technologies, and engage new communities. Throughout each change, our unwavering
commitment to customer service has been our guiding principle.

 Deliver wonderful banking service to its customers through state of the art technology.

 Satisfy all the stakeholders with healthy and sustainable value creation.

 To make our vision come true through professional integrity, corporate governance and
regulating compliance

Our Journey
The bank was incorporated under Company Act on Shrawan 22, 2064 and acquired license from
Nepal Rastra Bank to perform its financial transactions on Ashwin 24, 2064. The bank started its
formal operations on Kartik 18, 2064 from Waling 3, Syangja. After the successful merger
between Garima Bikas Bank Limited and the then Nilgiri Bikas Bank Limited, the bank
upgraded to National Level on Ashadh 29, 2072. 

Present Scenerio
The bank is now operating 116 branches and 51 ATMs throughout the country strategically
placed for the convenience of customers.
 Introduction
Garima Bikas Bank Ltd. was established by a group of enthusiastic, dedicated and successful
professionals and entrepreneurs from different fields including business, teaching, engineering,
doctors, banking, accounting, management etc. We are multicultural, multilingual members of
our communities. Our rich diversity is our strength.

Garima Bikas Bank employees are approachable, personable and knowledgeable. We encompass
an ever expanding range of business expertise and personal experience. We have a long history
and our ability to adapt and grow has enabled us to respond to changing markets, explore new
technologies, and engage new communities. Throughout each change, our unwavering
commitment to customer service has been our guiding principle.

1.2 Statement of problems

 Deliver wonderful banking service to its customers through state of the art technology.

 Satisfy all the stakeholders with healthy and sustainable value creation.

 To make our vision come true through professional integrity, corporate governance and
regulating compliance

Our Journey
The bank was incorporated under Company Act on Shrawan 22, 2064 and acquired license from
Nepal Rastra Bank to perform its financial transactions on Ashwin 24, 2064. The bank started its
formal operations on Kartik 18, 2064 from Waling 3, Syangja. After the successful merger
between Garima Bikas Bank Limited and the then Nilgiri Bikas Bank Limited, the bank
upgraded to National Level on Ashadh 29, 2072. 

Present Scenerio
The bank is now operating 116 branches and 51 ATMs throughout the country strategically
placed for the convenience of customers

Vision, Mission & Objectives

We are committed to offer the best of services to customers and to be their first choice.. We have
very clear vision, i.e. “Access to All”. We focus on equal access of all peoples who are real
seeker of banking services.
Vision

We have very clear vision, i.e. “Access to All”. We focus on equal access of all peoples who are
real seeker of.

Mission

Missions of Garima Bikas Bank Ltd. can be summarized as: Deliver wonderful banking service

Objectives

To provide sustainable and quality financial service to the public upholding and enhancing the
interest

E-Payment Partn

1.3 Objectives of the study

The main objective of this research is to analyze the financial performance of Garima Bikas
Bank through the use of appropriate tools and to recommend the suitable suggestion for
improvement of the banks to the management team owners. Analysis of the financial statements
helps to examine the efficiency and performance of main organization’s financial statement show
the financial strength and weakness of the firm.

This study will mainly focus on the following objective especially related to the financial
performance analysis of Garima Bikas Bank.

 To determine loan and advances to total deposit ratio

 To determine return on assets

 To examine return of equity

 To analyze profit margin

 To assess equity multiplier

1.4 Rationale of the study

This research will mainly focus on identifying financial performance analysis of Garima Bikas
Bank. The study contributes significantly to the management of Garima Bikas Bank. This will
provide guidelines for improving its performance to achieve the banks overall objectives.
Similarly, this study helps to bank to identify its hidden weakness regarding financial
administration. This study explains the shareholders about the financial performance of their
respective banks. The study also compels the management of respective banks foe self-
assessment of what they have done in the past and guides them in their future plan and programs.

1.5 Limitation of the Study

This study has limited by the following factors:

 The study is limited only in the financial performance of Garima Bikas Bank.

 This study has been based on the data only published in annual report of Garima Bikas
Bank.

 This study has been based on the secondary data.

 This study covers the period between fiscal year 2073/74 to 2077/78.

 It does not consider the changes that have taken place before and after the study.

 This study is limited to five years so it may not consider the real growth of Garima Bikas
Bank.
2. Review of Literature

Review of literature means reviewing of research studies or other relevant propositions in the
related area of the study. So, that the past studies and their deficiencies may be known and
further research can be conducted. This chapter highlights available literature related to this
research which makes base of knowledge for the study. Review of literature is taking an
available literature is own’s field of research. It comprises conceptual review and related studies.

B.N. Ahuja (1998), “Financial Performance analysis is a study or relationship among the various
financial factor in a business a disclosed by a single set of statement and a study of the trend of
these fact as shown in a series of statements. By establishing a strategic relationship between an
item of a balance sheet and income statements and other operative data, the financial analysis
unveils the meaning and signification of such items”.

A comparison of ratio of some firms over in important in evaluating changes and trends in the
firm’s financial condition and profitability. This comparison may be historical. It may also
include an analysis of the future based upon projected financial statements. Ratios may also be
judged in comparison with those of similar firms in the same line of business and when
appropriate, with an industry average, much can be gleaned from a thorough analysis of financial
ratios. With empirical testing of the predictive power of ratios financial ratio analysis is likely to
became for more scientific and more objective than formerly (Van Horne and James, 2000).

According to the Robert N. Anthony (2003), “A ratio is simply one number exposed in forms of
another. It is found by dividing one number, the base into the other, a percentage is one kind of
ratio in which the base is taken as equaling 100 and the quotient is expressed as per hundred of
bases. The data given is financial statement are meaningless and they are unable to communicate
anything from the analytic view point.

Ho and Song Zhu (2004) in this study “Performance Measurement of Taiwan’s Development
Banks” present a use on innovative to stage data involvement analysis model that separate
efficiency and effectiveness to evaluate the performance of 41 listed corporate of the banking In
Taiwan. Data employment approach (DEA) is linear programming approach used the measuring
relative efficiency for a set of homogeneous decision-making units in converting multiple inputs
(resources) to produce multiple outputs(products). The result also indicates that the bank with
better efficiency does not always mean that it has better effectiveness. There is no approach
correlation between these two indicators. The researcher has made conclusion that the inefficient
bank and effectively promote resources utilization efficiency by data handling their labor and
capital operating efficiency.

Financial analysis is the process of determining the significant operating and financial
characteristics of a firm from accounting data and financial statement. The goal of such analysis
is to determine the efficiency and performance of the firm’s management as it is reflected in the
financial records and reports. The analyst is attempting measures the firm’s liquidity,
profitability and other indications that business is conducted in a rational and orderly way. If a
firm doesn’t achieve financial norms per its industry or relationships among data that seen
reasonable, the analysts note the deviation. The burden of explaining the apparent problems may
then be placed upon management (Hampton, 2006).

3 Methodology of Study

Research methodology is a way to systematically solve the research problem. The systematic
method is used in this study in collecting data and analyzing the data to find a solution to such
problems. The following methods has been used:

3.1 Research Design

The research examines the facts and postulates in certain framework on details and supplies the
important information on subject matter summary of the study major findings of the study,
recommendation, conclusions etc. are the most significant information among them they are
derived with the help of some financial and statistical tools has been adopted to financial analysis
and consideration not only to research about Garima Bikas Bank but also the facilitates the
Garima Bikas Bank. The study has been the case study under the framework of descriptive
research design.
3.2 Nature and Source of Data

For the purpose of the study the secondary data has been gathered from various sources such as
annual reports, books, articles etc. the major sources of secondary data is the annual report of the
sampled bank.

3.3 Population and Sample

For the purpose of this study Development banks has been taken as population. There are
currently 18 Development banks in Nepal. Among 18 Development bank Garima Bikas Bank
has been selected as a sample for this study. For this study Conventional sampling method has
been taken under Non-probability sample.

1.6.4 Instrument

The financial ratio is used for the analysis and interpretation of the financial performance of
Garima Bikas Bank. The selected sample has been checked, reevaluated, edited and tabulated,
graphically presented bring them into appropriate for the analysis purpose.

1.6.5 Methods of Data Collection

For the purpose of this study, following sources which are secondary in their nature has been
used:

 Websites of Garima Bikas Bank

 Books written by various authors

 Previous dissertations

 Unpublished thesis, and articles published in journals.

1.6.6 Tools of Data Analysis

Various financial and statically tools have been used in this study to the meaningful results to
meet research objectives. Financial ratios are the major tools for the analysis. In addition to the
financial tools other simple statically descriptive tools also be used. Those tools which has been
used in this study are listed below:

loan and Advances to total deposit ratio:

total loan∧advances
loan and advances to total deposit ¿
Total deposits

The total loan to deposit ratio is used to assess a bank’s liquidity by comparing a

bank’s total loan to its total deposits for the same period.

Return on equity (ROE):

Net Profit After Tax Net Income

ROE¿ or ¿
Total Equity Total Equity capital

This ratio is also called ‘investor’s ratio’. It measures the effectiveness of management with
respect to both its operating and financial decisions. This measure returns for shareholders.

Return on assets (ROA):

net income
ROA ¿
total asset

Return on assets is an indicator of how well a company utilizes its assets, by determining how
profitable a company is relative to its total assets. Higher ROA indicates more assets efficiency.

Interest margin:

net income
Interest margin
total interest

It is calculated by dividing a bank’s net income by total interest.

Equity multiplier:
 total assets
Equity multiplier¿ '
total shareholde r s equity

The equity multiplier is a financial ratio that measures the portion of company’s assets that are
financed by stockholder's equity. It is calculated by dividing a company's total asset value by
total net equity.

REFERENCE

Acharya, M(2012). "A study on Financial performance analysis of Janasewa saving and credit
cooperative society limited". Tribhuwan University.

Nepal Rastra Bank, (2004, July). Banking and financial Statistics.Vol.43.

Bhawana Community Agriculture Co-operative limited, Annual Reports (2067/68-2071/72),
Sarangkot.

Pant, Prem Raj (1998). Field work Assignment and Report writting. Kathmandu, Veera
Academic Enterprise pvt.ltd.