BANKING (GURKHA DEVELOPMENT BANK NEPAL)

SUMMARY
In this modern banking, it has passed several stages before reaching at present stage. Due to liberal economic policy adapted by the Nepalese government, a number of banks have operating today in Nepal .similarly GDB is also one of the commercial bank established in Nepal. This field report ''LOAN MANAGEMENT IN GDB", and it is prepared to find objectives whether this bank will be able to manage the loan properly or not. It consist of research and methodology ,presentation and analysis of data, loan management like loan and advance, loan loss provision, interest income on loans and advances, bill purchased and discounted, commission and discount on bills purchased and discounted and total deposits. It includes primary and secondary data. And it also interprets and analyzes the data. A study of two years period (2063/64) of loan and advance and overdraft shows the loan asset of GDB is following an increasing future year. A review of loan loss and provision from 2062/63 to 2063/64 shows it is increasing every year. Similarly, commission and discount on bills purchased and discounted ratio is following and increasing in 2064.The higher the ratio in the year 2064. Both local and current bills are purchased and discounted by GDB. It is positively related to each other and shows the increase in total deposit to increase in loan and advance.

CONCLUSION
In the conclusion part, after the study of loan management in GDB, it can be known that the GDB can perform loan management satisfactory till now. Besides the study it concludes the following points:
The loan loss provision of GDB is increasing in respected year like in 2062/63 to 2063/64.So this shows that it is safe incase of non repayment of loan. So at the same time it is not possible to rule the fact that a higher loan loss provision reflects the inefficiency of management.
In the interest income on loans and advances ratio is increasing itself, so it is the good sign for the development of bank as well as for the country.
The relation between total deposits and loan is positively, so if the deposit decline it effects on loan automatically.
Bill purchased and discount is increased in fiscal year which is increase in foreign currency bills. This is due to increase in number of exports which increase the overall exports of the country.
Increase in loan of the bank shows the competition in banking sector.

RECOMMENDATIONS
Effective management is must for all the banking functions. So it is very essential for lending function for commercial bank. Similarly from the conclusion the study of the loan management of GDB, it is suggested the various recommendations:
The bank should provide the facility of interest rate rebate to the borrowers, who repay the loans before the stipulated time. This helps to increase the number of early payers which reduce the default risk.
The bank should be opened 24 hrs for the client's facility.
GDB should conduct a market research on a periodic basis, which helps to increase identify the potential borrowers.
GDB has invested a maximum amount of its fund on risky asset, thus the bank is always threatened by the fear of default. it will be the better if the bank diverts some amount of fund from lending and invest it in less risky which helps the bank to diversify the risk.
There must be proper valuation of securities, proper appraisal of projects and careful screening of loan application.

BIBLIOGRAPHY
Bhandari D.R. Principle and practices of banking and Insurance, Asia publication, 2000.
Gurkha Development Bank Annual report 2062/63 to 2063/64.
http\\www.google.com, search engine
http\\www.Gurkhabank.com, website of GDB.
Patna P.R. Field work Assignment, Buddha Academic Enterprises Pvt. Ltd.