Title: Financial Performance Analysis Of NIC Asia Bank Limited

2 Introduction:
The banking sector is a crucial component of any economy, playing a pivotal role in financial
intermediation and economic development. NIC Asia Bank, as one of the prominent financial
institutions, holds a significant position in the Nepalese banking industry. This proposal aims to
conduct a comprehensive analysis of the financial performance of NIC Asia Bank, utilizing
statistical methods and time series analysis.
2.1 Background:
NIC Asia Bank has been a key player in Nepal's financial landscape, providing a wide range of
banking and financial services. Understanding and evaluating its financial performance is
essential for stakeholders, including investors, regulators, and the general public. This analysis
intends to shed light on the bank's strengths, weaknesses, opportunities, and threats, contributing
to informed decision-making.
NIC Bank, which was founded on July 21, 1998, is the parent institution of NIC ASIA Bank.
After NIC Bank and Bank of Asia Nepal merged on June 30, 2013, the bank was renamed as
NIC ASIA Bank. This was the first merger of its kind between two prosperous commercial banks
in Nepal, making it momentous in the financial landscape's annals.

NIC ASIA is currently regarded as one of Nepal's most prosperous commercial banks.

NIC ASIA was praised by stakeholders and regulators for its seamless post-merger integration
phase management, which cleared the path for additional mergers and consolidation in the
Nepalese banking industry.

Following the merger, The Banker, Financial Times, UK named NIC ASIA "Bank of the Year
2013-Nepal." This is the Bank's second time receiving this esteemed award; the first time was in
2007.

The bank is headed by Tulsi Ram Agrawal as its chairman and Roshan Kumar Neupane as chief
executive officer. Neupane was appointed as CEO of the bank on 2 December 2018 with four
years tenure.
2.2 Statement of the problem:
While NIC Asia Bank has been a prominent player in the banking industry, there is a need for a
detailed examination of its financial performance to address certain concerns and uncertainties.
Challenges may arise from evolving market dynamics, regulatory changes, and global economic
shifts. Furthermore, understanding how the bank's financial metrics have responded to these
challenges is critical for stakeholders to make informed decisions.
2.3 Objectives:
 To assess the overall financial health of NIC Asia Bank.
 To identify key financial performance indicators.
 To conduct a statistical analysis to identify trends and patterns.
 To employ time series analysis to understand historical financial performance.

2.4. Importance/Advantages:
Understanding NIC Asia Bank's financial performance is crucial for various stakeholders.
Investors can make informed decisions, regulators can assess compliance, and the bank itself can
identify areas for improvement. The research will contribute to the overall transparency and
accountability of the banking sector, fostering trust and stability.
2.5. Limitations:
 Data limitations: The analysis heavily relies on the availability and accuracy of financial
data from NIC Asia Bank.
 External factors: Economic and regulatory changes may impact the relevance and
applicability of the findings.
 Scope: The research may not cover all aspects of the bank's operations due to limitations
in scope and available data.

2.6. Ethics/Rational of Research:

The research will adhere to ethical standards by ensuring confidentiality of sensitive information,
avoiding biases in data interpretation, and obtaining necessary permissions for data usage. The
rationale is to contribute to the body of knowledge in financial performance analysis, promoting
transparency and accountability in the banking sector.
3. Literature Review:
[1]NIC ASIA Bank was founded as Nepal Industrial and Commercial Bank on 21 July 1998. It
was renamed NIC ASIA Bank on 30 June 2013 after it merged with Bank of Asia. The merger
was the first between of two commercial banks in the Nepalese Banking history. After the
merger,[2] NIC ASIA was recognized as ”Bank of the Year 2013-Nepal” by The Banker,
Financial Times, UK. This is the second time that the bank was recognized with this prestigious
award, the previous occasion being in 2007. The Bank has successfully completed its 21 years of
operation. The company has currently the following wholly owned subsidiaries: NIC Asia
Capital Limited and NIC Asia Laghubittiya Sanstha limited.
The bank, with its 360 branches,[3] 473 ATMs, 102 extension counters and 81 branchless
banking service is the largest bank in terms of footprint expansion, customer base including
balance sheet size. Currently bank is providing services to more than 3 million
customers(2022,April).
[4]The bank is headed by Tulsi Ram Agrawal as its chairman and Roshan Kumar Neupane as
chief executive officer. Neupane was appointed as CEO of the bank on 2 December 2018 with
four years tenure.

4. Methodology:
4.1. Research Paradigism:
This study will adopt both qualitative and quantitative research approach to analyze the financial
performance of NIC Asia Bank. Qualitative research involves the collection of non-numerical
data through field surveys, interviews and observation tools and Quantitative research involves
the collection and analysis of numerical data, allowing for statistical and mathematical
interpretation of patterns, trends, and relationships.
4.2. Research design:
For preparing this report, descriptive research design is used. Data are collected from only
secondary method, because this method is easily available. The following methodology is
adopted for the data presentation and analysis.
4.2.2. Sampling:
The study will encompass a historical analysis covering the past five years. The chosen time
frame will allow for a thorough examination of trends and patterns in NIC Asia Bank's financial
performance.
4.2.3 Source of Data: Financial data will be collected from NIC Asia Bank's annual reports,
audited financial statements, and other official publications for a predetermined time period,
ensuring a comprehensive representation of the bank's performance.
4.3 Statistical Analysis: Statistical tools such as Mean and Standard Deviation will be employed
to identify relationships and trends within the financial data.
5. Time Allotment.
The time allotment for writing this report as follows:
S.N Activities No. Of
. Days
1. Topic Selection 1
2. Proposal Writing 10
3. Field Visit and Data Collection 5
4. Presentation and Analysis Data 10
5. Proof Reading 2
6. Setting and Printing Report 1
Total 29

6. References.
The list of all references as on the field work are.

[1] NIC ASIA Bank was founded as Nepal Industrial and Commercial Bank on 21 July
1998: https://www.nicasiacapital.com/[bare URL]

[2] The Banker, Financial Times, UK recognized NIC Asia Bank. on 30 June 2013

[3] "Branches". NIC Asia Bank. Retrieved 19 September 2020.

[4] "Neupane appointed CEO of NIC Asia". The Himalayan Times. 2 December 2018.