Dilip Final

Liquidity Position Analysis of Standard Chartered Bank
Nepal
Submitted By:
Dilip Singh
P.U. Reg. No: 2017-2-03-0206
Exam Roll No: 18031150
Level: BBA 3rd year, 6th Semester
A Project Work Report submitted to Pokhara University in partial fulfillment of the

requirements for the degree of
Bachelor of Business Administration (BBA)
At
Apollo International College
Faculty of Management
Pokhara University
New Baneshwor, Kathmandu
April, 2021
DECLARATION
I hereby declare that the project work report entitled "Liquidity Position Analysis of
Standard Chartered Bank Nepal” submitted for the BBA is my original work and
the Project Work Report has not formed the basis for the award of any degree,
diploma, or other similar titles.
Signature…………………….
Dilip Singh
April, 2021
BONAFIDE CERTIFICATED
ACKNOWLEDGEMENT
This project work report “Liquidity Position Analysis of Standard Chartered

Bank Nepal” has been prepared in the partial fulfillment for the Degree of Bachelor
of Business Administration (BBA) under the course designed by the faculty of
management of Pokhara University. This study has been prepared to examine the
liquidity position of Standard Chartered Bank.
First of all I would like to thank Pokhara University for including this project report in
our BBA 6th semester program. This gives us chance for gaining practical knowledge
to boost our research skills.
I express my sincere honor and special sense of gratitude to the program director of
Apollo International College Mr.Bimal Gautam for his generous guidance,
thoughtful encouragement and brilliant insight throughout this research work.
Also I owe great intellectual debt for support and immense contribution to
administrative of Standard Chartered Bank. I am thankful to all those writers and
researchers whose materials and methods has been review wherever necessary during
the study period as a reference.
Finally I would like to thank to my teachers and friends of Apollo International

College who directly and indirectly contributing their time and effort in this report.
Dilip Singh
BBA 6th Semester
Apollo International College
April, 2021
ABBREVIATIONS
BBA: Bachelor of Business Administration
Ltd: Limited
P.U: Pokhara University
PLC: Public Limited Company
ATM: Automated Teller Machine
BOD: Board of Director
EBL: Everest Bank Limited
PCBL: Prime Commercial Bank Limited
NRB: Nepal Rastra Bank
FY: Fiscal Year
AB BANK: Arab Bangladesh Bank
.i.e.: That is
▼: Decrement
▲: Increment
3rd: Third
6th: Sixth
Contents
DECLARATION...........................................................................................................i
BONAFIDE CERTIFICATED...................................................................................ii
ACKNOWLEDGEMENT..........................................................................................iii
ABBREVIATIONS.....................................................................................................iv
LIST OF TABLES.......................................................................................................v
Tables Pages..................v
CHAPTER- 1................................................................................................................1
INTRODUCTION............................................................................................................ 1
1.1Background of the Study.........................................................................................1
1.2 Objectives of the Study...........................................................................................2
1.3 Scope of the Study..................................................................................................2
1.4 Limitations of the Study..........................................................................................3
1.5 Importance of the Study.........................................................................................3
1.6 Organization of the Study.......................................................................................4
CHAPTER-2................................................................................................................... 5
LITERATURE REVIEW............................................................................................5
2.1 Meaning of Literature Review................................................................................5
2.2 Objectives of Literature Review..............................................................................5
2.3 Review of Related Studies......................................................................................6
CHAPTER-3.................................................................................................................9
RESEARCH METHODOLOGY...............................................................................9
3.1 Meaning of Research Methodology........................................................................9
3.2 Research Design..................................................................................................... 9
3.3 Nature and Sources of Data..................................................................................10
3.4 Decision of Sample...............................................................................................10
3.5 Data Collection Procedure....................................................................................11
3.6 Data Processing.................................................................................................... 11

3.7 Data Analysis Tools...............................................................................................12
3.8 Data Interpretation Techniques............................................................................12
CHAPTER- 4..............................................................................................................13
DATA PRESENTATION, ANALYSIS, INTERPRETATION AND FINDINGS
......................................................................................................................................13
4.1 Data presentation, analysis and interpretation....................................................13
4.2 Findings of the analysis.........................................................................................13
4.1.1 Current Ratio..................................................................................................... 13
4.1.2 Cash Ratio..........................................................................................................14
4.1.3. Working capital.................................................................................................15
4.1.4 Working Capital Turnover..................................................................................16
4.2 Findings of the Study/Analysis..............................................................................17
CHAPTER-5...............................................................................................................18
SUMMARY AND CONCLUSION...........................................................................18
5.1 Summary of the Study..........................................................................................18
5.2 Conclusion............................................................................................................ 19
BIBLIOGRAPHY.....................................................................................................viii
APPENDICES.................................................................................................................ix
Appendix -1..................................................................................................................ix
Balance Sheets and Profit and Loss Accounts..............................................................ix
Appendix- 2.................................................................................................................xx
LIST OF TABLES
Tables
Pages
Table1.1.1 BOD of Standard Chartered……….............................................................2

Table 4.1.1 Current Ratio…………………………………………………………….13
Table 4.1.2 Cash Ratio…………………………………………….......…………..…14
Table 4.1.3 Working Capital………….………………………...……………………15
Table 4.1.3 Working Capital turnover ………….………………………................…16

CHAPTER- 1
INTRODUCTION
1.1Background of the Study
A bank is a financial institution that accepts the deposit from the public and
creates credits.
Standard Chartered Bank Nepal Limited has been in operations in
Nepal since 1987 when it was initially registered as a joint venture operation.
Standard Chartered Bank Nepal Limited is banking and financial services
company in Nepal and a subsidiary of Standard Chartered PLC.
Standard Chartered gives the Bank a unique opportunity to provide
truly international banking services in Nepal. Standard Chartered Bank Nepal
Limited headquarter is located at New Baneshwor. Today the Bank is an integral part
of Standard Chartered Group having and ownership of 70.21% in the company
with 29.79% shares owned by the Nepalese public. The Bank enjoys the status of the
largest international bank currently operating in Nepal. With fifteen points of
representation, twenty-three ATMs across the country and with more than four
hundred fifty local staff, Standard Chartered Bank Nepal Limited is in a position
to serve its clients and customers through and extensive domestic network. In
addition, the global network of Standard Chartered Group gives the Bank a unique
opportunity to provide truly international banking services in Nepal.
Standard Chartered Bank Nepal Limited offers a full range of
banking products and services to a wide range of clients and customers encompassing
individual, mid-market, local corporate, multinationals, large public sector companies,
government corporations, airlines, hotels as well as the DO segment comprising of
embassies, aid agencies, NGOs and INGOs.
The directors of the bank are high personalities with vast experience in
business and the financial sectors the board comprises the following directors.
1
Table 1.1: BOD of Standard Chartered Bank Nepal Limited
S.N Board Members Post
1 Mr. Zarin Daruwala Chairman
2 Ms. Karen De Alwis Director
3 Mr. Krishna Kumar Pradhan Director
4 Mr. Bharat Kunwar Director
5 Mr. Anirvan Ghosh Dastidar Director
Standard Chartered Bank Nepal Limited is now, one of the largest

private sectors, Commercial bank in the country. Such types of bank are inspiration of
low level bank. It is also necessary for us to collect and provide the proper
information to required parties. These all help to coming generations with made by
the references.
So this topic has been selected to test the effectiveness liquidity
position of Standard Chartered Bank Nepal Limited.
.
1.2 Objectives of the Study

The main objectives of the study are given below.
 To identify liquidity position of the bank.
 To analyze liquidity ratios.
 To suggest on findings.
1.3 Scope of the Study

Scope refers to the extent of the area or subject matter that something deals
with or to which it is relevant. It covers the upper and lower limits of the area that
have been studied. The scope of the study is that it covers the liquidity position
analysis of Standard Chartered Bank Nepal Limited and suggests the necessary
measures for the improvement of the financial performance of the bank. It revolves
around the liquidity position and related ratios calculations of Standard Chartered
Bank Nepal Limited.
 It revolves around the liquidity position of Standard Chartered Bank Nepal
Limited.
2
 The study is useful for making comparison with other competitors.
It can also be used as a base performance evaluation.
1.4 Limitations of the Study

Limitations are the restriction that can affect the result of the study. Its
limitations are those events, things, variables, information etc. that are outside of the
scope of this study. The limitations of this project work are as follows.
 The financial statements are of 2014-2018 and so results of the study do not
reflect previous years.
 The conclusion of the study cannot be applied in other banks since the study is
on Standard Chartered Bank Nepal Limited.
 Only limited financial tools i.e. ratios are used to analyze the financial
statements.
1.5 Importance of the Study

After completing this study it will helped the researcher, the organization and
information seekers. Some of major importance are as follows.
 To the Researcher Himself
This study helps the researcher to develop both skill and
knowledge that are useful for problem solving, time management etc. through
the study.
This is because researcher did a lot of activities like data collections,
presentation, analysis and interpretation.
 To the Organization
The organization will know about strength and weaknesses. This
study provides important information to the bank. Through the study organization
easily get feedback that is helpful for decision making.
 To the Information Seeker
Through the study, information seekers get relevant information in
effective manner. This study provides relevant information to information
`seeker regarding liquidity positions analysis of the organization. Similarly
this study will also help further generation as a sample to prepare report.
3
 To Enrich Library Assets
The study Enriches or enhance the library assets. Library assets
include books, articles, thesis, documents etc. The piece of research article is
kept in the library which will increase number of articles.
1.6 Organization of the Study

The study has been divided into five following chapters along with
bibliography and appendices.
Chapter one includes introduction, background of the study, objective of the study,
scope of the study, limitation of the study, importance and organization of the study.
Chapter two contains literature review, objectives of literature review and review of
related studies.
Chapter three includes research methodology, research design, nature and sources of
data, decision of sample, data collection procedure, data processing, data analysis
tools and data interpretation techniques.
Chapter four implies data presentation, analysis and interpretation and major
findings.
Chapter five presents summary of the study and conclusion with suggestions
Bibliography includes reference of sources. Appendices include the financial
statements i.e. balance sheets and profit and loss accounts and different calculated
ratios like current ratios, cash ratio and working capital.
4
CHAPTER-2
LITERATURE REVIEW
2.1 Meaning of Literature Review
A literature review is an evaluated report of information found in the literature

related to selected area of the study which describes, summarizes, evaluates and
clarifies the literature. The literature review is a summary of previews research on
topic which survey scholarly articles, books and of source relevant to a particular area
of research or internet.
Some definitions of different scholar are given below.
According to Hart (1998), "A literature review is an account of what has been
published on a topic by accredited scholars and researchers." (Page 34, Business
Research Methods, SUKUNDA PUSTAK BHAWAN)
According to Walliman (2006), "A literature review is a summary and analysis of
current knowledge about a particular topic or area of inquiry." (Page 35, Business
Research Methods, SUKUNDA PUSTAK BHAWAN)
According to Cardesco and Gatner (1986), "A literature review is a self-contained
unit in a study which analyses critically a segment of published body of knowledge
through summary, classification and comparison of prior research studies and
theoretical articles." (Page 30, Business Research Methods, ASMITA
PUBLICATIONS)
2.2 Objectives of Literature Review

Some of the objectives of literature review are as follows.
 To identify the research gap.
 To identify the research conducted on chosen field.
 To develop the research design.
 To develop theoretical frame work.
 To know appropriate tools for data analysis and presentation.
5
2.3 Review of Related Studies
There are so many related studies conducted by previous researches
relating this topic. But, it is quite impossible to review all these studies. Therefore,
only three related studies are reviewed.
One study on “A Study on Liquidity Analysis of Everest Bank Ltd and Prime
Commercial Bank Ltd” (2015) by Ranjana Awal had the following objectives and
findings.
Objectives of the Study
 To study the financial performance of the sampled banks.
 To examine the return over equity and relation between debt and
equity
 To analyze the liquidity position of the banks.
 To evaluate the bank’s efficiency in utilizing assets
 To provide recommendations for the improvement of the future
performance of sample banks based on findings the study.
Major Findings
 Current Ratio of EBL and PCBL looks satisfactory level. Both the Current
Assets and Current Liabilities are in increasing trend during the study
period.
 Cash and bank balance to Current Assets ratio of both banks shows the
increasing trend of the ratio during the study period of FY 2009/10to FY
2011/12 and its declining in the year FY 2012/13.
 Total investment to total deposit ratio during the study period of both
banks have increment their investment out of deposit which is very good
mobilization of deposit.
 The bank could invest the liquid to various sectors maintaining minimum
balance according to NRB.
 The analysis of cash and bank balance to total deposit ratio shows the ratio
is fairly good and have liquid assets enough to pay paid up capital.
The next study on “Comparative Analysis of Liquidity Position of Banks: A Study
on Some Selected Conventional and Islamic Banks in Bangladesh” (2013) by
Sabrina Akhter had the following objectives and findings.
6
 To evaluate the liquidity position of selected banks in Bangladesh.
 To carry out a comparative study of liquidity position of selected banks
with some parameters used for judgment.
Major Findings
 Overall liquidity positions of the Islamic banks are better than
conventional banks.
 If we consider the short term and long term liquidity position of
selected banks, we have found that in both terms Islamic banks are
more efficient than conventional banks.
 However the total amount of liquidity is higher for conventional bank
as we have chosen country’s largest conventional banks. These bank’s
total assets and liabilities are higher than the Islamic banks. Although
in this analysis we have found the Islamic bank’s liquidity position is
more organized than that of the conventional banks.
 From simple regression analysis we can see that ROA exerts great
impact over liquidity of Islamic bank and for conventional bank the
most influential indicator is P/E ratio.
 From multiple regression analysis it is apparent that ROA and P/E
collectively exert great influence over liquidity of Islamic bank
whereas ROA and ROE together exerts immense control over liquidity
of conventional bank.
 So from overall findings from regression analysis it can be articulated
that profitability ratios exercise enormous impact over liquidity for
both types of bank.
Another study on “Liquidity Position Analysis of AB Bank Ltd. & Southeast Bank
Ltd” (2016) by Rakibul Hossen had the following objectives and findings.

 To determine the liquidity position of two largest commercial banks
“Southeast Bank Ltd and AB Bank Ltd” in terms of Asset-based liquidity
indicators and Liability-based liquidity indicators.
7
Major Findings
 Overall performance of both the bank in terms of liquidity is been in a
regular trend with significant volatility.
 It is noted that in cash position ration AB bank has greater volatility
throughout the past five years and Southeast bank has a deep down in year
2014 regarding short-term deposit ratio.
 All the indicators determine that Southeast bank has a greater liquidity
position than AB Bank Ltd in both Asset-based and Liability-based
liquidity indicators.
8
CHAPTER-3
RESEARCH METHODOLOGY
3.1 Meaning of Research Methodology
Research Methodology refers to various sequential steps to adopt by a
researcher in studying a problem with certain objectives in view. It is the systematic
methods of analysis applied to a field of study. It allows readers to critically evaluate
a study’s overall validity and reliability.
According to John.W.Best (1985)“Research Methodology is a systematic and

objective analysis and recording of controlled observations that may lead to the
development of generalizations, principles, theories and concepts, resulting in
prediction for seeing and possibly ultimate control of events.” ("Research skills for
Management" USA: Ablex Publishing)
According to Mouley (1994) “Research Methodology is the process of arriving at

dependable solution to the problems through the planned and systematic collection,
analysis and interpretation of data” ("Research Design" USA: Black Day Publishing)
3.2 Research Design

Research design is the conceptual structure within which the research is
conducted; it constitutes the blueprint for the collection, measurement and analysis of
data. So, the research design can be defined as a plan, structure and strategy of a
research to find out alternative tools to solve the problems and to minimize the
variances.
3.2.1 Types of Research Design

Research design is an overall plan of completing the research work. Different
types of research designs are used according to nature of researches, objectives and
availability of resources. Generally, it is classified into the following types.
 Exploratory research designs

 Casual comparative research design
 Correlation study
 Experimental research design
 Descriptive research design
9
Out of all these research designs, this project report uses exploratory and descriptive
research design, which is used to studying the subject of research in detail and to
explain the facts and features related to the research problem.
3.3 Nature and Sources of Data

3.3.1 Nature of Data
Data is collected, measured, analyzed and reported, where upon it can be
visualized using graphs or images. Generally there are two types of nature of data
 Primary data
 Secondary data
The analysis of the study is based on the nature of secondary data. Under the study
secondary data are collected from financial statements of the banks like profit and loss
account and balance sheet.
3.3.2 Sources of Data

Data is the information acquired from optional sources like magazine, books,
documents, journals, reports, websites and more .Normally one can gather data from
two sources namely
 Primary sources
 Secondary sources
Out of these two sources, the analysis of study is based on secondary source, so these
data are obtained from internet.
3.4 Decision of Sample

A sample is a smaller, manageable version of a larger group. A sample should
represent the whole population and not reflect bias toward a specific attribute. The
various types of sampling are
 Probability Sampling
 Simple Random Sampling
 Stratified Sampling
 Cluster Sampling
 Systematic Sampling
10
 Non-Probability Sampling
 Convenience Sampling
 Quota Sampling
 Judgment Sampling
 Snowball Sampling
This report is based on judgment sampling which is one of the types of non-
probability sampling. Many banks are there in Nepal but out of them Standard
Chartered Bank Nepal is selected.
3.5 Data Collection Procedure
Data collection is the process of gathering and measuring data, information or

any variables of interest in a standardized and established manner that enables the
collector answer or test hypothesis and evaluate outcomes of the particular collection.
This is an integral, usually initial, component of any research done in any field of
study. The research has followed all steps of secondary data. Hence, following data
collection procedure was done
 Searched in the computer.

 Got data in Internet.
3.6 Data Processing
Data processing is the conversion of raw data into useable and desired form.
This includes sorting, grouping, and tabulating
Sorting is a process of arranging, ordering items in a systematic and sequential

ordered by some criterion, categorizing, grouping items with similar properties.
Grouping is the process of accumulating similar items into various classes.
Tabulating is a way of processing information or data by putting it in a table.
11
3.7 Data Analysis Tools
Tools used to arrange and classify the data with the purpose of generating
useful information is data analysis. The data in this report are analyzed by using the
financial and simple mathematical tools.
 Financial Tools
Current Assets
 Current ratio = Current Liabilities
Cash∧cash equivalent
 Cash ratio =
Current Liabilities
 Working capital=Current Assets -Current Liabilities
Interest Revenue
 Working capital turnover=
Working capital
 Mathematical Tools
 Percentage
3.8 Data Interpretation Techniques

There are different interpretative techniques that are used in report. But only
three techniques were used in this report
 Figurative and explanation.

 Central meaning of explanation.
 Future prediction and causes/reasons for improvement.
12
CHAPTER- 4
DATA PRESENTATION, ANALYSIS,

INTERPRETATION AND FINDINGS
This unit/chapter of researcher work/project work is very important. This

unit is prepared by using the research methodology stated in the third unit/chapter for
this purpose, the required data were collected, necessary calculations were done using
financial tools and suitable tables have been prepared. The calculated data have been
presented in the prepared tables. The analysis and interpretation part is under each
table. To result, bar diagrams are also used. This unit/chapter has particularly,
contains the following.
4.1 Data presentation, analysis and interpretation

4.2 Findings of the analysis
4.1 Data presentation, analysis and interpretation

 Current Ratio
 Cash Ratio
 Working Capital
 Working Capital Turnover
4.1.1 Current Ratio

The following table contains the value of current ratio of five years.
Table 4.1.1
Current ratio
Years Calculated Values Change in values Percentage change in values
2016 0.73:1 0.13▼ 15.11%▼
2017 0.94:1 0.21▲ 28.76%▲
2018 1.13:1 0.19▲ 20.21%▲
2019 1.04:1 0.09▼ 7.96%▼
2020 0.74:1 0.30▼ 28.85%▼
13
Source: Financial Statements (2016-2020)
This table shows that the bank has current ratio in 2016, 2019 and 2020
decreased by 15.11% , 7.96% and 15.11% respectively and in 2017 and 2018 the
current ratio has increased by 28.76% and 20.21% respectively.
The positive current ratio means that the greater the company's liquidity i.e.
the better able to meet current obligations using liquid assets. Whereas a negative
current ratio means that a company is not able to meet current obligations using
liquid assets.
From the above analysis it is obvious that the performance of the bank is not
satisfactory. The bank should increase cash balance and/or current assets and reduce
loans and/or current liabilities.
The data after calculation have been shown in the bar diagram given bellow.
Percentage change in values

40.00%
30.00%
20.00%
10.00% Percentage change
0.00%
-10.00% 2016 2017 2018 2019 2020
-20.00%
-30.00%
-40.00%
Fig: 4.1.1 Current Ratio
4.1.2 Cash Ratio

The following table contains the value of cash ratio of five years.
Table 4.1.2
Cash Ratio
2016 0.17:1 0.22▼ 56.41%▼
2017 0.32:1 0.15▲ 88.23%▲
2018 0.44:1 0.12▲ 37.50%▲
2019 0.58:1 0.44▲ 31.81%▲
2020 0.33:1 0.25▼ 43.10%▼
14
This table shows that the bank has cash ratio in 2016 decreased by 56.41%
and in 2020 the cash ratio has decreased by 43.10%.Whereas in 2017, 2018 and 2019
the cash ratio has increased by 88.23% , 37.5% and 31.81% respectively.
To increased cash ratio indicate that the company can easily pay off its
debt. Whereas decreased cash ratio indicates that the company needs more than just
its cash reserves to pay off its current debt.
The analysis shows that the trend is fluctuating of cash ratio. The company
should increase cash reserve and reduce current liabilities.

100.00%
80.00%
60.00%
40.00% Percentage change
20.00%
0.00%
-20.00% 2016 2017 2018 2019 2020
-40.00%
-60.00%
-80.00%
Fig: 4.1.2 Cash Ratio
4.1.3. Working capital

The following table contains the value of working capital of five years.
Table 4.1.3
Working Capital
2016 15,641,752,453▼ 8,535,222,174▼ 120.10%▲
2017 3,870,917,794▼ 11,770,834,659 ▼ 75.25%▼
2018 9,193,744,693▲ 5,322,826,899 ▲ 137.50%▼
2019 3,214,752,838▲ 5,978,991,855▼ 65.03%▲
2020 36,360,823,443▼ 33,146,070,605▼ 1031.06%▼
This table shows that the bank has working capital in 2016 and 2019
increased by 120.10% and 65.03% respectively and in 2017 the working capital has
15
decreased by 72.25% whereas in 2018 the working capital has increased by 137.50%,
and in 2020 the working capital has decreased by 1031.03%.
The positive working capital means that the company has enough current
assets to meet all of its short-term financial obligations. Whereas negative working
capital means that company's current assets are less than its current liabilities.
From the above analysis it is clear that the trend is fluctuating of working
capital. The company should increase current assets and reduce current liabilities.

200.00%
0.00%
2016 2017 2018 2019 2020
-200.00%
Percentage change
-400.00%
-600.00%
-800.00%
-1000.00%
-1200.00%
Fig: 4.1.3 Working Capital
4.1.4 Working Capital Turnover

The following table contains the value of working capital of five years.
Table 4.1.4
Working Capital Turnover
2016 -0.1544 - -
2017 0.7907 0.9451 612.11%
2018 0.5374 0.4878 983.47 %
2019 -0.0002 -0.5376 -100.02%
2020 2.0219 2.0221 1011050%
This table shows that the bank has working capital turnover in 2017, 2018 and 2020
increased by 612.11% , 983.47% and 1011050% respectively and in 2019 the working
capital has decreased by -100.02% .
16
The positive working capital turnover means measures how effective a business is at
generating sales for every dollar of working capital put to use. A higher working
capital turnover ratio is better, and indicates that a company is able to generate a
larger amount of sales.
12000
10000
8000
6000
4000
2000
0
2016 2017 2018 2019 2020
-2000
4.2 Findings of the Study/Analysis

After the collections of annual report of Standard Chartered
Bank they are calculated, analyzed and interpreted and the followings findings are
extracted and described. The major findings of report are followings.
 Current ratio of recent Five years shows that the Standard Chartered Bank
is not in satisfactory position.
 Cash ratio of recent Five years shows that the Standard Chartered Bank is
in fluctuating trend.
 Working capital of recent Five years shows that the Standard Chartered
Bank has fluctuating trend.
 The calculated values reflects that the financial situation of Standard
Chartered Bank. Relating to profitability positions. It can be concluded that
performance of bank is not satisfactory and is in fluctuating trend.
17
CHAPTER-5
SUMMARY AND CONCLUSION

5.1 Summary of the Study
This report is prepared on the topic, "A Study on Liquidity Position of
Standard Chartered Bank Nepal." This study has tried to discuss the concept and
analysis of Current Ratio, Cash Ratio and Working Capital of the concerned bank.
The basic objective of the study is to find out Current Ratio, Cash Ratio and Working
Capital of Standard Chartered Bank Nepal. Thus, this report starts with the
introduction of the organization to be studied.
Thus, study presents the details and depth information about the
organization in its first chapter. Standard Chartered Bank Nepal has been in
operations in Nepal since 1987 when it was initially registered as a joint venture
operation. It is one of the leading as a commercial bank in Nepal. The study brings the
banks' objectives and its vision. In fact, all the necessary information about Standard
Chartered Bank has been collected for this study in the very beginning.
After that the study talks about the Literature Review done for this
report. It includes the reviewing of previous work relating to the topic. This report
includes the three related studies of "A Study on Liquidity Analysis of Everest Bank
Ltd. and Prime Commercial Bank Ltd.” (2015) by Ranjana Awal, "Comparative
Analysis of Liquidity Position of banks: A study on same selected conventional and
Islamic Bank in Bangladesh” (2013) by Sabrina Akhter, "Liquidity Position
Analysis of AB Bank Ltd. & Southeast Bank Ltd" (2016) by Rakibul Hossen with
their objectives and findings to support this study.
Next, the study brings the concept of research methodology. The

Chapter deals about the methodology that is used for this report. It talks about
research design, source of data sampling technique, data processing tools and
techniques etc. This study uses the exploratory and descriptive research design and
based on secondary data. Judgment sampling technique is used for this report and
various statistical, financial and mathematical tools are used for data analysis.
Lastly, the fourth chapter revolves around the data presentation, analysis
and findings of the study. In this chapter, tables are used to present and analyzed the
data and the liquidity position of the bank. Various ratios like current ratio, cash ratio
and working capital have been computed to analyze the financial conditions of the
bank relating to liquidity management.
5.2 Conclusion
The overall results are not satisfactory and are in fluctuating trend. But,
in some cases Standard Chartered Bank Nepal should take certain steps to improve
18
the banks' current financial condition. Therefore, some recommendations are being
put forward for its improvement along with its development of the company. Based
on the analysis of data and findings, the following conclusions are made.
 The analysis of data shows that Current Ratio of Standard Chartered

Bank Nepal is not satisfactory position. So, the bank should increase
cash balance and/or current assets and reduce loans and/or current
liabilities.
 The Cash Ratio of the bank is in fluctuating trend. Therefore, the bank
should increase cash reserve and reduce current liabilities.
 The analysis of data it is clear that the trend is fluctuating of Working
Capital. So, the company should increase current assets and reduce
current liabilities.
19
BIBLIOGRAPHY
Annual Reports
Standard Chartered (2014-2018)
Articles
Carsesco and Gatner (1986) "Page 30, Business Research Method" Asmita
Publications
Hart (1998) "Page 34, Business Research Method" Sukunda Pustak Bhawan
John.W.Best (1985) "Research skills for management" USA: Ablex Publishing
Mouley (1994) "Research Design" USA: Black Day Publishing
Walliman (2006) "Page 35, Business Research Method" Sukunda Pustak Bhawan
Unpublished Report
Rakibul Hossen (2016) "Liquidity Position Analysis of AB Bank Ltd. & Southeast
Bank Ltd"
Ranjana Awal (2015) "A Study on Liquidity Analysis of Everest Bank Ltd. and
Prime Commercial Bank Ltd"
Sabrina Akhter (2013) "Comparative Analysis of Liquidity Position of banks: A

study on same selected conventional and Islamic Bank in Bangladesh”
Websites
http://www.google.com
http://www.standardchartered.com
viii
APPENDICES
Appendix -1
Balance Sheets and Profit and Loss Accounts
ix
x
xi
xii
xiii
xiv
xv
xvi
xvii
xviii
Appendix- 2
Calculation of Current Ratio, Cash Ratio, Working Capital of fiscal year
(2074BS/2016AD) to (2077BS/2020AD)
Workings for 2016

Total Current Assests
Current Ratio=
Total Current Liabilities
Here,
Total Current Assets= Cash balance + Balance with Nepal Rastra Bank + Balance
with Banks/Financial Institutions + Money at Call and Short Notice + loans,
Advances and Bills Purchased + Other Assets
=799366056+1514671384+1658294743+606966000+31302949596+674863061
= Rs 42,019,804,840
Total Current Liabilities= Loans and Borrowings + Deposit Liability + Bills Payables
+ Proposed Dividend + Income Tax Liability + Other Liabilities
=500000000+55727178456+310183573+49340807+0+1074854457
= Rs 57,661,557,293
42019804840
Current Ratio=
57661557293
= 0.73:1
Cash∧Cash Equivalent
Cash Ratio=
Here,
Cash and Cash Equivalent= Cash balance + Balance with Nepal Rastra Bank +
Balance with Banks/Financial Institutions + Money at Call and Short Notice
=799366056+1514671384+1658294743+606966000
= Rs 10,041,992,183
=500000000+55727178456+310183573+49340807+0+1074854457
xix
= Rs 57,661,557,293
10041992183
Cash Ratio=
57661557293
= 0.17:1
Working Capital= Total Current Assets -Total Current Liabilities
Here,
=799366056+1514671384+1658294743+606966000+31302949596+674863061
= Rs 42,019,804,840
=500000000+55727178456+310183573+49340807+0+1074854457
= Rs 57,661,557,293
Working Capital=42019804840-57661557293
= Rs (15,641,752,453)
Total intrest revenue

Working capital turnover :
Working capital
Here ,
Intrest revenue = 2415582668
Working capital turnover= 2415582668/(15,641,752,453)
= (0.1544) times
Workings for 2017

Current Ratio=
Here,
xx
=811609528+7067997124+1048695313+12623564000+39263690286+858098333
= Rs 61,673,654,584
=0+63872885452+76659624+210827123+0+1384200179
= Rs 65,544,572,378
61673654584
Current Ratio=
65544572378
= 0.94:1
Cash Ratio=
Here,
=811609528+7067997124+1048695313+12623564000
= Rs 21,551,865,965
=0+63872885452+76659624+210827123+0+1384200179
= Rs 65,544,572,378
21551865965
Cash Ratio=
65544572378
= 0.32:1
Here,
xxi
=811609528+7067997124+1048695313+12623564000+39263690286+858098333
= Rs 61,673,654,584
=0+63872885452+76659624+210827123+0+1384200179
= Rs 65,544,572,378
Working Capital= 61673654584-65544572378
= Rs (3,870,917,794)

Working capital
Here ,
Intrest revenue= 3060619093
Working capital turnover= 3060619093/(3,870,917,794)
= (0.7907) times
Workings for 2018

Current Ratio=
Here,
Total Current Assets= Cash and Cash Equivalent + Due from Nepal Rastra Bank +
Placement with Banks/Financial Institutions + Derivative Financial Institutions +
Other Trading Assets + Loan and Advance to B/FIs + Loan and Advance to
Customers + Current Tax Assets + Other Assets
=
22048328040+3982461794+4831200000+9208507+0+2134849717+44561330150+9
36871209+674868630
= Rs 79,179,118,047
Total Current Liabilities= Due to Bank and Financial Institutions + Due to Nepal
Rastra Bank + Derivative Financial Instruments + Deposit from Customers +
Borrowing + Current Tax Liabilities + Other Liabilities
=326710474+0+0+67061046522+0+976567120+1621049238
xxii
= Rs 69,985,373,354
79179118047
Current Ratio=
69985373354
= 1.13:1
Cash Ratio=
Here,
Cash and cash Equivalent= Cash and Cash Equivalent + Due from Nepal Rastra Bank
+ Placement with Banks/Financial Institutions + Derivative Financial Institutions
= 22048328040+3982461794+4831200000+9208507
= Rs 30,871,198,341
=326710474+0+0+67061046522+0+976567120+1621049238
= Rs 69,985,373,354
30871198341
Cash Ratio=
69985373354
= 0.44:1
Here,
=22048328040+3982461794+4831200000+9208507+0+2134849717+44561330150+
936871209+674868630
= Rs 79,179,118,047
=326710474+0+0+67061046522+0+976567120+1621049238
xxiii
= Rs 69,985,373,354
Working Capital= 79179118047-69985373354
= Rs 9,193,744,693

Working capital
Here ,
Intrest revenue=4940674786
Working capital turnover = 4940674786/ 9,193,744,693
= 0.5374 Times
Workings for 2019

Current Ratio=
Here,
=12,626,985,439+2454907094+9902700000+43337602+2541465040+53092116663
+50081437+797892561
= 81,509,485,836
= 50840120+0+7531527432+0+0+2057365446
= 78,294,732,998
Current Ratio= 81,509,485,836/78,294,732,998
= 1.04:1
xxiv
Cash Ratio=
Here,
= 39244049170+1985450188+4210500000+41753153
= 4,54,817,522,511
=50840120+0+7531527432+0+0+2057365446
= 78,294,732,998
Cash Ratio = 4,54,817,522,511/78,294,732,998
= 0.58:1
Here,
=12,626,985,439+2454907094+9902700000+43337602+2541465040+53092116663
+50081437+797892561
= 81,509,485,836
= 50840120+0+7531527432+0+0+2057365446
= 78,294,732,998
Working Capital= Total current Asset – Total current Liabilities
= 81,509,485,836- 78,294,732,998
xxv
= 3214752838

Working capital
Here ,
Working capital turnover= 6500038683/3214752838
= 2.0219 Times
Workings for 2020

Current Ratio=
Here,
=39244049170+1985450188+4210500000+41753153+0+3010898821+53924855910
+171939431+566507959
= 103,155,954,632
=42464865653+0+1172413+95020841249+0+0+2029898760
= 139,516,778,075
Total current assets

Current Ratio=
= 103,155,954,632/139,516,778,075
= 0.74:1
xxvi
Cash Ratio=
Here,
= 39244049170+1985450188+0+4210500000
= 45439999358
=42464865653+0+1172413+95020841249+0+0+2029898760
= 139,516,778,075
Cash Ratio = cash and cash equivailent/ current liabilities
= 45439999358/139,516,778,075
= 0.33:1
Here,
=103,155,954,632
=139,516,778,075
xxvii
Working Capital= Total current Assets- total current Liabilities
= 103,155,954,632-139,516,778,075
=(36360823443)

Working capital
Here ,
Working Captital turnover= 668955895/(36360823443)
=(0.0002) times
xxviii

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Liquidity Position Analysis of Standard Chartered Bank

P.U. Reg. No: 2017-2-03-0206

Exam Roll No: 18031150

Level: BBA 3rd year, 6th Semester

A Project Work Report submitted to Pokhara University in partial fulfillment of the

Bachelor of Business Administration (BBA)

Apollo International College

New Baneshwor, Kathmandu

This project work report “Liquidity Position Analysis of Standard Chartered

Finally I would like to thank to my teachers and friends of Apollo International

BBA 6th Semester

Apollo International College

BBA: Bachelor of Business Administration

P.U: Pokhara University

PLC: Public Limited Company

ATM: Automated Teller Machine

BOD: Board of Director

EBL: Everest Bank Limited

PCBL: Prime Commercial Bank Limited

NRB: Nepal Rastra Bank

FY: Fiscal Year

AB BANK: Arab Bangladesh Bank

1.1Background of the Study.........................................................................................1

1.2 Objectives of the Study...........................................................................................2

1.3 Scope of the Study..................................................................................................2

1.4 Limitations of the Study..........................................................................................3

1.5 Importance of the Study.........................................................................................3

1.6 Organization of the Study.......................................................................................4

2.2 Objectives of Literature Review..............................................................................5

2.3 Review of Related Studies......................................................................................6

3.2 Research Design..................................................................................................... 9

3.3 Nature and Sources of Data..................................................................................10

3.4 Decision of Sample...............................................................................................10

3.5 Data Collection Procedure....................................................................................11

3.6 Data Processing.................................................................................................... 11

3.8 Data Interpretation Techniques............................................................................12

4.2 Findings of the analysis.........................................................................................13

4.1.1 Current Ratio..................................................................................................... 13

4.1.2 Cash Ratio..........................................................................................................14

4.1.3. Working capital.................................................................................................15

4.1.4 Working Capital Turnover..................................................................................16

4.2 Findings of the Study/Analysis..............................................................................17

Balance Sheets and Profit and Loss Accounts..............................................................ix

Table1.1.1 BOD of Standard Chartered……….............................................................2

Table 4.1.3 Working Capital turnover ………….………………………................…16

1.1Background of the Study

Standard Chartered Bank Nepal Limited is now, one of the largest

1.2 Objectives of the Study

1.3 Scope of the Study

1.4 Limitations of the Study

1.5 Importance of the Study

1.6 Organization of the Study

2.1 Meaning of Literature Review

A literature review is an evaluated report of information found in the literature

2.2 Objectives of Literature Review

Objectives of the Study

According to John.W.Best (1985)“Research Methodology is a systematic and