FINANCIAL PERFORMANCE ANALYSIS ON THE BASIS
CAMEL FRAMEWORKS
(WITH REFERENCES SANIMA AND CITIZEN BANK INTERNATIONAL LIMITED)
A Thesis
Submitted
By
Rama Lamichhane
Saraswati Multiple Campus
Roll No: - 29/2073
Registration No: - 7-2-885-4-2012
In Partial Fulfillment of the Requirement for the Degree of
Master of Business Studies (MBS)
In the
Faculty of Management
Tribhuvan University
Lekhnathmarg, Kathmandu
April, 2021
ii
CERTIFICATION OF AUTHORSHIP
I certify that the work in this thesis has not previously been submitted for a degree nor
has it been submitted as a part of requirements for a degree except as fully
acknowledged within the text.
I also certify that the thesis has been written by me. Any help that I have received in
my research work and the preparation of the thesis itself has been acknowledged. In
addition, I certify that all information sources and literature used are indicated in the
reference section of the thesis.
……………………
Rama Lamichhane
Date:
iii
RECOMMENDATION LETTER
It is certified that thesis entitled Financial Performance Analysis on the Basis
Camel Frameworks (With References Sanima and Citizen Bank International
Limited) submitted by Rama Lamichhane is an original piece of research work
carried out by the candidate under my supervision. Literary presentation is
satisfactory and the thesis is in a form suitable for publication. Work evinces the
capacity of the candidate for critical examination and independent judgment.
Candidate has put in at least 60 days after registering the proposal. The thesis is
forwarded for examination.
Thesis Supervisor
Department of Management
Saraswati Multiple College,
Kathmandu, Nepal
Date: April, 2021
iv
APPROVAL SHEET
We, the undersigned, have examined the thesis entitled Financial Performance
Analysis on the Basis Camel Frameworks (With References Sanima and Citizen
Bank International Limited) presented by Rama Lamichhane, a candidate for the
degree of Master of Business Studies (MBS) and conducted the viva voce
examination of the candidate. We hereby certify that the thesis is worthy of
acceptance.
…………………………..
Thesis Supervisor
………………………………..
Internal Examiner
………………………………….
External Examiner
…………………………………
Chairperson, Research Committee
…………………………………
Head of the Department
Date :
v
ACKNOWLEDGEMENT
This thesis entitled “Financial Performance Analysis on the Basis Camel
Frameworks (With References Sanima and Citizen Bank International
Limited)” has been prepared in partial fulfillment for the degree of Master of
business studies (MBS) under the course designed by the Faculty of Management,
T.U. This study is based on the prescribed research format involving the use of
financial ratios in banking sector.
At the time of preparing this study, I have consulted with various personalities. So I
would like to extend my sincere thanks to all whose works and ideas helped me in
conducting the study. Sincerely, I would like to pay my sincere gratitude to my thesis
supervisor Basu Dev Upadhaya, respected lecturer of Saraswati Multiple College who
guided through research work with providing valuable suggestions, supports and
supervision.
I would like to express Campus Chief Dr. Gol Man Gurung and Dr. Sanjaya Acharya
(Chairperson of Research Committee) respected lecturers of Saraswati Multiple
College for their proper encouragement & cooperation.
Finally, I would like to offer my profound gratitude to my family members, my
friend, colleagues, and well wishers for their encouragement and support during the
entire period of my study.
Rama Lamichhane
Researcher
vi
TABLE OF CONTENTS
Certificate of Authorship
Recommendation Letter
Approval Sheet
Acknowledgement
Table of Content
List of Table
List of Figure
Abbreviation
Abstract
CHAPTER 1 INTRODUCTION
1.1 Background of the Study
1.2 Problem Statement and Research Question
1.3 Purpose of the Study
1.4 Significance of the Study
1.5 Limitation of the Study
1.6 Chapter Plan
CHAPTER 2 LITERATURE REVIEW
2.1 Theoretical Review
2.2 Review of Journals and Articles
2.3 Review of Thesis
2.4 Conceptual Framework
2.5 Research Gap
vii
CHAPTER 3 RESEARCH METHODOLOGY
3.1 Research Design
3.2 Population and Sample
3.3 Nature and Source of Data
3.4 Data Collection Procedure
3.5 Data Processing Procedure
3.6 Data Analysis Tools and Techniques
CHAPTER 4 RESULTS
4.1 Data Presentation and Analysis
4.2 Major Findings
CHAPTER 5 CONCLUSIONS
5.1 Discussion
5.2 Conclusion
5.3 Implication
5.3.1 General Implication
5.3.2 Implication for Future Researchers
REFERENCES
viii
LIST OF TABLES
Table No. Title Page No.
Table 1
ix
LIST OF FIGURES
Figure No. Title Page No.
Figure 1
x
ABBREVIATIONS
xi
ABSTRACTS
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
1.2 Problem Statement and Research Question
1.3 Purpose of the Study
1.4 Significance of the Study
1.5 Limitation of the Study
1.6 Chapter Plan
Chapter 1: Introduction
Chapter 2: Literature Review
Chapter 3: Methodology
Chapter 4: Results
Chapter 5: Conclusion
2
CHAPTER 2
LITERATURE REVIEW
2.1 Theoretical Review
2.2 Review of Journals and Articles
2.3 Review of Thesis
2.4 Conceptual Framework
2.5 Research Gap
3
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Design
3.2 Population and Sample
3.3 Nature and Source of Data
3.4 Data Collection Procedure
3.5 Data Processing Procedure
3.6 Data Analysis Tools and Techniques
1 Financial Analysis Tools
2 Statistical Analysis Tools
Generally, the statistical tools are used for attaining accuracy on analysis and study.
According to this study's objectives, here following tools are used.
i. Arithmetic mean
Average is statistical constants which enables us to comprehend in a single effort the
significance of the whole. It represents the entire data by a single value. It is
calculated as:
X́ =
∑X
N
Where,
X́ - Arithmetic mean
∑X - Sum of Observation
N - Number of Observation
ii. Standard deviation
4
The standard deviation is the square root of mean squared deviations from the
arithmetic mean and is denoted by S.D. or σ. It is used as absolute measure of
dispersion or variability. It is calculated:
∑ (X- X́ )2
σ=
√ N-1
Where,
σ = Standard Deviation
iii. Coefficient of variation
The coefficient of variation (C.V.) is the relative measure based on the standard
deviation and is defined as the ratio of the standard deviation to the mean expressed in
percent. It is independent of units. Hence it is a suitable measure for comparing
variability of two series with same or different units. A series with smaller C.V. is
said to be less variable or more consistent or more homogeneous or more uniform or
more stable than the others and vice versa. It is calculated as:
X́
C.V. = ×100
σ
Where,
C.V. – Coefficient of Variation
iv. Correlation Coefficient
Correlation Coefficient is the important tool to analyze the degree of relationship
between two or more variables. It is used to describe the degree to which one variable
in the linearly related to other variables. It refers the closeness of the relationship
between two or more variable. In order words, it is an analysis of covariance between
two or more variable. In order words, it is an analysis of covariance between two or
more variables.
It is the statistical measure of the relationship. If any, between series of numbers
representing data of any kind, from returns to test sources. If two series move in
5
opposite direction, they are positively correlated; if the series move in opposite
direction, they are negatively correlated.
The degree of correlation is measured by the correlation coefficient, which ranges
from +1 for perfectly positively correlated series to -1 for perfectly negatively
correlated series. Symbolically, correlation coefficient can be expressed as follows:
N ∑ xy - ∑ x ∑ y
Correlation Coefficient ( r ) = 2 2
√ N ∑ x - (∑ x ) √ N ∑ y - (∑ y )
2 2
Correlation analysis describes the relationship between variables i.e. positive or
negative.
It helps to determine the following,
i. A positive or negative relationship exists.
ii. The relationship is significant on insignificant.
iii. Establish cause and effect relation if any.
The statistical tool-correlation analysis is used in the study to measure the relationship
between variables in determining within the relationship is significant or not. For the
purpose decision making interpretation are based on the following terms.
i. When, r = 1, then it is perfect positive correlation.
ii. When, r=-1, then it is perfect negative correlation.
iii. When, r = 0, then is no correlation variable are independent.
iv. When, ‘r’ lies between 0.7 to 0.999, then is high degree of positive correlation.
v. When, ‘r’ lies between 0.5 to 0.7999 there is moderate degree of correlation.
vi. When, ‘r’ is less than 0.5, there is low degree of correlation.
6
CHAPTER 4
RESULTS
4.1 Data Presentation and Analysis
4.2 Major Findings
1.
7
CHAPTER 5
CONCLUSIONS
This final chapter involves summary, conclusions and implications of the research
work:
5.1 Discussion
5.2 Conclusion
5.3 Implications
5.3.1 General Implication
5.3.2 Implication for Future Researchers
1.
8
REFERENCES
