i

Acknowledgement We would like to express our sincere gratitude and appreciation to Purbanchal University for providing us the golden opportunity to go through internship and gain real working experience in organization which will definitely act as milestone in our career ahead.

We highly appreciate the innumerable suggestions provided to us by the teachers, professionals and the staff members of Agricultural Development Bank Limited in the course of the study. We have endeavored in the present report to set forth the details encountered in the Analysis of Utilization of unds of A!"# with as much accuracy and consistency as the sub$ect permits.

We extend sincere gratitude and appreciation for generous and helpful comments and valuable information on the report to the following respected personnel who made us feel at home, bearing all our shortcomings and mistakes with a big smile during our stay in the bank. %r. &amesh &a$ Aryal %r. (uresh !hakal %rs. *ulie (hrestha %rs. &ony Pradhan %alla 'ompany (ecretary, )'' "ank "ranch %anager, 'habahil Act. (enior +xecutive ,fficer *unior +xecutive ,fficer

ii

We would furthermore like to show appreciation to the following faculty members of our college for their extensive support, advice, guidance and continuous supervision. %r. &avi %an (hakya %rs. %aria +.-. (hrestha %r. !evendra #al /aran$it Principal, )epal college of %anagement +x.Principal, )epal 'ollege of %anagement #ecturer, )epal 'ollege of %anagement

We assure that this report shall be kept strictly confidential and shall be disclosed only to the Purbanchal University and '-0+.

iii

Abstract 0his report has been prepared in partial fulfillment of course "achelors in "usiness Administration, Purbanchal University, 'ollege of -nformation 0echnology and +ngineering, also with mutual benefit to A!"#, where the internship was conducted.

0he report commences with the introduction and nature of the study, followed by the methodology. 0he study of ours is based on the internal affairs of the bank1 hence the data used by us is the secondary data that has been obtained from the bank and )&"2s "anking and inancial (tatistics published overtime.

0he company profile of the bank has been amended without distorting the actual meaning for the purpose of using in this report. -t also explains in brief Agricultural !evelopment "ank2s managerial aspects, its ma$or business, its market share and (W,0 analysis.

-ndustry analysis and P+(0 analysis has been done accordingly to find out the competitiveness of bank in the industry.

0he data analysis portion commences with the identification of various sources of funds and its uses followed by data analysis and interpretation of the ways in which

iv

the fund are used by A!"# in comparison to other commercial banks and what are their position with respect to various types of functions and attributes.

0he conclusion to the findings to the study has been dealt with in detailed manner in the latter phase of the report with as much thoroughness and reliability as the sub$ect matter permits.

Table of Contents

Title

Page

Acknowledgement Abstract 0able of 'ontents #ist of 0ables #ist of igures #ist of Abbreviations

i iii v ix x xi

3. -ntroduction 3.3 (tudy "ackground 3.5 Problem (tatement 3.7 %a$or -ssues 8overning the (tudy 3.9 ,b$ective of the (tudy 3.: &ational of the (tudy

3 4 36 33 33 37

vi

3.; (cope of the (tudy 3.< #imitations 3.= ,rganization of the (tudy

39 39 3:

3.4 (chedule of the (tudy 3.36 8antt chart

3; 3<

5. (tudy %ethodology 5.3 (tudy Approach 5.5 (ub$ect of the (tudy 5.7 (ources of !ata>-nformation

3= 3= 3= 3=

7. #iterature &eview

56

9. 'ompany Profile 9.3 ,rganization (tructure 9.3.3 "oard of !irectors 9.3.5 %anagement 0eam 9.3.7 ,rganization chart 9.3.9 %anagement Practices at )'' "ank

5; 77 77 79 7< 7=

9.5 %a$or "usiness

96

vii

9.7 %a$or 'ompetitors 9.9 %arket (hare of the "ank 9.: (W,0 Analysis

93 93 95

:. -ndustry Analysis :.3 )ature and (cope of the -ndustry :.5 'ompetitiveness of the -ndustry :.7 %a$or Players in the -ndustry :.9 +nvironmental (canning ?P+(0 Analysis@

99 99 9= :6 :3

;. indings and Analysis ;.3 inancial Aighlights of A!"# ;.5 Performance -ndicators of A!"# ;.7 Analysis of (ources of unds ;.7.3 !eposits ;.7.5 ,ther #iabilities ;.9 Analysis of Uses of unds ;.9.3 #oans and Advances ;.9.5 -nvestments :4

:: :;

;6 ;3 ;; ;= <6 <;

;.: Analysis of %anagement of (ources of unds with Uses of unds <= ;.; 0otal #oan to 0otal !eposit &atio ;.< )PA to 0otal #oans =3 =7

viii

;.= ##P to 0otal #oans ;.4 )et Profit to 0otal #oans ;.36 )et Profit to 0otal !eposit

=: == 43

<. 'onclusions =. &ecommendations

47 49

"ibliography

ix

List of Tables

Table No. 3 5 7 9 : ; < = 4 36 33 35 37 39 3: 3; 3< 3= 34 56 53 55 57 59

Table Heading Page No. (ome 'ommercial "anks in )epal < "oard of !irectors of A!"# 77 %anagement 0eams of A!"# 79 %arket (hare of some 'ommercial "anks 93 "alance (heet of A!"# :; (hare (tructure of A!"# :< 'apital (tructure of A!"# :< -ncome (tatement of A!"# := Performance -ndicators of A!"# :4 (ources of unds for A!"# ;6 'omposition of !eposits of A!"# ;5 !eposits %ix ,f (ome 'ommercial "anks ;9 'omposition of ,ther #iabilities of A!"# ;< Uses of unds of A!"# ;4 (ector wise #oans and Advances of A!"# <3 'lassification of #oans of A!"# <7 #oan 'lassification of (ome 'ommercial "anks <: 0ypes of -nvestments <; 'lassification of (ources B Uses of unds "ased on %aturity <4 0otal #oans to !eposits &atio of some 'ommercial "anks =3 )PA to 0otal #oans =9 ##P to 0otal #oans of some 'ommercial "anks =; 'omparison of )et Profit to 0otal #oans B Advances 46 'omparison of )et Profit to 0otal !eposits 43

List of igures

igure No. 3 5 7 9 : ; < = 4 36 33 35 37 39 3: 3;

igure Heading 8antt chart ,rganization (tructure Pie.'hart of 'omposition of !eposits of some 'ommercial "anks !eposit %ix of some 'ommercial "anks Pie.'hart showing sector 'omposition of ,ther #iabilities of )'' "ank Pie.'hart of sector wise #oans B Advances of A!"# Pie.'hart of )'' "ank #oan 'lassification "ar !iagram of #oans 'lassification some 'ommercial "anks Pie.'hart of 0ypes of -nvestments "ar !iagram of 'lassification of (ources of unds and Uses of unds "ased on %aturity 'omparison of 0otal #oans to 0otal !eposits of some 'ommercial "anks 'omparison of )PA to 0otal #oans of some 'ommercial "anks 'omparison of ##P to 0otal #oans of some 'ommercial "anks #ine graph of Cearly )et Profit to #oan B Advances of A!"# "ar !iagram of 'omparison of )et Profit to #oans B Advances between some "anks "ar diagram of comparison of )et Profit to 0otal !eposits between some "anks

Page No. 3< 7< ;7 ;: ;< <3 <9 <: << =6 =5 =: =< =4 46 45

xi

List of Abbreviations A!"# )&" ('")# )A"-# A"# )-"# +"# )-'" &"" )"# )" "ank ('0 %-( 8en Admin. A""( Agricultural !evelopment "ank #imited )epal &astra "ank (tandard 'hartered "ank )epal #imited )abil "ank #imited Aimalayan "ank #imited )epal -nvestment "ank #imited +verest "ank #imited )epal -ndustrial and 'ommercial "ank #imited &astriya "ani$ya "ank )epal "ank limited )epal "angladesh "ank #imited (mart 'hoice 0echnologies %anagement information (ystem 8eneral Administration Any "ranch "anking (ystem

xii

A0% C )PA ##P )8,

Automated 0eller %achine iscal Cear )on Performing Assets #oan #oss Provision )on 8overnmental ,rganization

W0, '&& ""A #td.

World 0rade ,rganization 'ash &eserve &atio "achelor -n "usiness Administration #imited