EMPLOYEE SATISFACTION OF EVEREST BANK LIMITED

A PROJECT WORK REPORT

Prepared By:

`
TU Reg. Number:
Exam Roll No:
Madhyabindu Multiple Campus

Submitted To:
Office of the Dean
The faculty of Management
Tribhuvan University, Kathmandu

In partial fulfillment of the requirement for the degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Kawasoti, Nawalpur
(2024)
 DECLARATION

I here declare that the project work entitled Employee Satisfaction of Everest Bank
Limited submitted to the Faculty of Management, Tribhuvan University, Kathmandu is an
original piece of work under the supervision of Shree Krishna Thapa, Faculty member,
Madhyabindu Multiple Campus Kawasoti municipality-03, Nawalpur and is submitted in
partial fulfillment of the requirements for the degree of Bachelor of Business Study (BBS).
This project work report has not been submitted to any other university or institution for the
award of any degree or diploma.

……………………….

2
 SUPERVISIOR’S RECOMMENDATION

The project work report entitled Profitability Ratio Analysis of Everest Bank Limited
submitted by of Madhyabindu Multiple Campus, Kawasoti, is prepared under my
supervision as per the procedure and format requirements for the degree of Bachelor of
Business Studies (BBS). I, therefore, recommend the project work report for evaluation.

………………………..
Shrikrishna Thapa

3
 ENDORSEMENT

We hereby endorse the project work report entitled Employee Satisfaction of Everest Bank
Limited submitted by Santosh Karki of Madhyabindu Multiple Campus, Nawalpur, in
partial fulfillment of the requirements for the degree of the Bachelor Of Business Studies
(BBS) for external evaluation.

………………………........
……………………

(Head of Marketing & Management Department) (Campus Chief)

Yagya Prasad Rijal Ganesh Man Giri

4
 ACKNOWLEDGEMENT

This study attempts to examine the Employee Satisfaction of Everest Bank Limited with
available data and information. It also deals with problem identification besides this field
study to acquire the reality of banking operation of Everest Bank. For easier study, the data
has been presented by tables, graphs and have been interpreted using various statistical
methods. This report tries to focus on the study of Everest Bank only.
I express my heartiest gratitude to Yagya Prasad Rijal for guiding and inspiring me to do
this fieldwork. I would also like to thank Ganesh Man Giri (Campus Chef), Yagya Prasad
Rijal (Head of Marketing & Management Department) and the entire staff members for their
kind co-operation and supports providing valuable information required for the completion of
the report.
Finally, I know to thank my colleagues for their continued moral support.

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 TABLE OF CONTENTS

Title Page………………………………………………………………………...i

Declaration……………………………………………………………………...ii

Supervisor’s Recommendation……………………………………………….iii
Viva-Voce.……………………………………………………………………………iv
Endorsement……………………………………………………………………..v
Acknowledgement………………………………………………...……………..vi
Table of Contents…………………………………………………………….....vii
List of Table…………………………………………………………………….viii
List of Figures………………………………………………………………..….ix
Abbreviations…………………………………………………………….....…....X

CHAPTER I: INTRODUCTION
1.1 Background of Study……………………………………….1
1.2 Brief Profile of Everest Bank Ltd..........................................2
1.3 Statement Problem…………………………………………..4
1.4 Objectives of the Study………………………………..…….4
1.5 Rationale/Significance of the Study…………………..……..5
1.6 Literature Review…………………………………………….5
1.6.1 Conceptual Review……………..………...….…5
1.6.2 Review of previous work………………...……..6
1.7 Research Methodology………………………………………..7
1.7.1 Tools and Techniques of analysis……………….7
1.7.2 Financial Tools…………………………………..7
1.7.3 Profitability Ratio……………………………..….7
1.8 Limitation of Study……………………………………………….8

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CHAPTER II: RESULTS AND ANALYSIS
2.1 Data Presentation…………………………………………………..9
2.2 Financial Analysis……………………………………………….....9
2.3 Profitability Ratio………………………………………………......9
2.3.1 Return on Assets………………………………......9
2.3.2 Return on Investment………………..……............10
2.3.3 Return on Equity……………………………….....11
2.3.4 Profit Margin………………………………….......12
2.3.5 Earning Per Share (EPS)………………….............14
2.4 Major Findings of Study……………………………………...…...15

CHAPTER III: SUMMERY AND CONCLUSION

3.1 Summary……………………………………………………….…16
3.2 Conclusion………………………………………………………..16

BIBLIOGRAPHY
APPENDICES

7
 LIST OF TABLES

Page No.
Table 1: Return on Assets ratio of EBL……………………………………....…...10
Table 2: Return on Investment of EBL……………………………………………11
Table 3: Return on Equity of EBL…………………………………………………12
Table 4: Profit Margin Ratio of EBL………………………………………………13
Table 5: Earnings per Share of EBL………………………………………..………14

8
 LIST OF FIGURE
Page No.
Figure 1: Return on Assets ratio of EBL………………………………………....10
Figure 2: Return on Investment of EBL……………………………………….....11
Figure 3: Return on Equity of EBL……………………………………………....12
Figure 4: Profit margin ratio of EBL……………………………………………..13
Figure 5: Earning per share of EBL………………………………………………14

9
List of ABBREVIATIONS

EBL : Everest Bank Limited

NRB : Nepal Rastra Bank
MOF : Ministry of Finance
Ltd : Limited
F/Y : Financial Year
ATM : Automated Teller Machine
RS : Rupees
No. : Number
NPAT : Net Profit after Tax
ROA : Return on Assets
ROE : Return on Equity
i.e. : For example
E-banking : Electronic Banking
EPS : Earning Per Share
ABBS : Any Branch Banking System
ASBA : Application Supported by Blocked account

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 CHAPTER l
INTRODUCTION

1.1 Background of Study

The word profitability is composed of two words, namely, profit and ability. The term profit
has been explained above and the term ability indicates the power of a business entity to earn
profits. The ability of a concern also denotes its earning power or operating performance. The
profitability may be defined as the ability of a given investment to earn a return from its use.
As an absolute term, profit has no relevance to compare the efficiency of a business
organization. A very high profit does not always indicate sound organizational efficiency and
low profitability is not always a sign of organizational sickness. Therefore, it can be said that
profit is not the prime variable on the basis of which the operational efficiency and financial
efficiency of an organization can be compared. To measure the productivity of capital
employed and to measure operational efficiency, profitability analysis is considered as one of
the best techniques.
However, the term ‘Profitability measures are important to company managers and owner
alike; Peavler (2016). Okwuosa (2005) sees ratio analysis is one number expressed in terms
of another to show the relationship between them. He adds that in financial accounting and
reporting, it is generally agreed that there are certain relationships between items shown in
the profit and loss account and those in the balance sheet as well as between items in these
statements. Therefore, ratios are used as a means of expressing these relationships. Nweze
(2011) defines ratio analysis as financial statement analysis uses as a primary tool, ratios,
which relate two figures applicable to different categories. Chandra (2008) adds that financial
ratio analysis is a study of ratios between various items or groups of items in financial
statement. Pandey (2010) sees financial analysis as a process of identifying the financial
strengths and weaknesses of the firm by properly establishing relationships between the firm
by properly establishing relationships between the items of the balance sheet and the profit
and loss account. He adds that ratio analysis is a powerful tool of financial analysis. A ratio is
used as a benchmark for evaluating the financial position and performance of a firm. So, the

11
relationship between two accounting figures, expressed mathematically, is known as a
financial ratio (or simply as a ratio).
Profit is an excess of revenues over associated expenses for an activity over a period of time.
Terms with similar meanings include ‘earnings’, ‘income’, and ‘margin’. Lord Keynes
remarked that ‘Profit is the engine that drives the business enterprise’. Every business should
earn sufficient profits to survive and grow over a long period of time. It is the index to the
economic progress, improved national income and rising standard of living. No doubt, profit
is the legitimate object, but it should not be over emphasized. Management should try to
maximize its profit keeping in mind the welfare of the society. Thus, profit is not just the
reward to owners but it is also related with the interest of other segment of the society. Profit
is the yardstick for judging not just the economic, but the managerial efficiency and social
objectives also.

1.2 Brief Profile of Everest Bank Ltd.

Established in 1994, Everest Bank Limited (EBL) is a name you can depend on for
professionalized and efficient banking services. Everest Bank Limited is a joint venture with
Punjab National Bank, India and is a consistently growing commercial bank of Nepal. The
Bank has been rendering Professionalized and efficient banking services to various segment
of the society through its widest domestic network and many correspondents across the globe.
Deriving strength from joint- venture partner, it has been steadily growing in size and
operation and has established itself as one of the leading private sector bank of the
commendable performance with consistent growth in net – worth and profit having one of the
Industry .The Bank is a symbol of consistency strength and dependability in the Nepalese
Banking Industry.

Joint Venture Partner

Punjab National Bank (PNB), joint venture partner (holding 20.03% equity) is the second
largest Public Sector Bank in India with Global Gross Business at Rs.30 lacs crore.With it's
presence virtually in important centres in India, PNB others a wide range of banking services
which include corporate & personal banking, industrial finance, agriculture finance, financing
12
of trade & international banking.currently Bank has total 36,514 delivery channels with a
network of 10,528 branches,2 international branches,13,506 ATMs & 12,487 Business
correspondents spread all across the India.As a joint-venture partner , PNB has been
providing top management support to EBL under Technical Service Agreement. The Bank
was acknowledged as the “Highest Tax Payer among Commercial Banks” by Nepal
government for F/Y 2068/69. The Bank was conferred with the Best Managed Commercial
Bank” by NEWBIZ BUSINESS Award 2019 .The Bank was declared 2 nd Best Managed
Commercial Bank by Abhiyan National daily in 2018.

Customer Base

Everest Bank is one of the banks with largest customer bases of more than 10 lacs satisfied
customers.With clients from all walks of life,the Bank has helped the nation to develop
corporately, agriculturally & industrially.

Network

Everest Bank provides customer-friendly services through its widest network all connected
through core banking solution,which enables customers for operational transactions from any
branches.The bank has 105 Branches,7 Province offices,138 ATMs,31 Revenue Collection
counters & more than 9000 payout agents across the country making it a very efficient &
accessible bank for its customers, anytime, anywhere.

Handling Revenue Accounts of Government

Owing to its strong credibility, Everest Bank has been authorized to collect revenue of
Nepal Government through its 31 revenue collection counter spread across the
country. It is the only private sector commercial bank handing all kinds of accounts of
Nepal Government and having special counter inside Singhadurbar. Everest Bank is
responsible for collecting more than 50% of the total government revenue of our
country.

13
1.3 Statement of Problem

Nepal is a country which is made up of village and rural areas mostly and where there is
predominance of agriculture sector. It is difficult to solve the credit problems of the
country through commercial bank and which are relevant to intramural and agriculture is
to overcome these change.

The Nepal Rastra Bank has mandated commercial Bank to open the branches in urban
areas. However, the challenge for country is to direct these commercial bank to provide
service to small and middle entrepreneur. These rural branches of commercial Banks
opened in the rural areas of Nepal do not seem to effective in their role of effective
deposit mobilization and loan distribution.

The competition is burning issue of the time in the country due to emergency at no. of
Finance companies and about a Dozed of rural Banks and Co-operative societies in a
short span of time. It has threatened the entire banking system. It has warned the EBL to
improve and manage their productivity. So, it is crucial time to concentrate land think
better productivity management of the securities and growth of the bank in environment
of tough competition.

The research seeks of fitted out inefficiency and weakness and EBL with the analysis of
these banks financial statement. Attempts are made shortly to answer the following
questions:-

 What are the factors affecting Profitability?

 How to analyze profitability?
 How to examine the performance of Everest Bank Ltd in terms of profitability?

1.4 Objectives of the study

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Each and every of research study possess a certain objective. The research without any
specific objective will be worthless. The basic objective of the study is to analysis the profit
planning policy of commercial banks with reference to Everest Bank Ltd. The specific
objectives of the study are:

 To determine the probability ratios of Everest Bank Ltd.

 To examine the performance of Everest Bank Ltd in terms of profitability.

1.5 Significance of the study

Profit is the life blood of the any organization because the continuity or survival of the each
and every organization is depends upon the earning capacity of that Organization. Profit
planning process significantly contributes to improve the profitability as well as the overall
financial performance of an organization with the help of the best utilization of the
commercial bank. Financial executive as well as those other policy making bodies which are
concerned with banking would also find it useful to the advance teachers and students of the
subjects particularly those in commerce, charted accountancy and institution of Finance.

1.6 Review

1.6.1 Conceptual Review

When evaluating a number of Profitable companies and looking to find which one is more
Profitable, you must utilize Profitability ratios. Profitability ratios test a company’s ability to
generate income. Net profit margin, which is net income divided by net sales. Will tell you
how much of the sales is left over after paying all expenses, Several other profitability ratios
include return on investment, return on assets and return on equity.

15
The purpose for a company’s existence is to make a profit for its shareholders. It is important
to see how well the company is doing in this respect. The ratios that provide this input are
grouped together as Profitability ratios. The gross profit margin measures what sort of profit a
company is generating from its sales after deducting the cost of the goods sold. It is a basic
ratio that does not take into account other costs that companies incur. Return on equity is
another profitability ratio that measures how much of a return the company is going on the
equity it has invested. This ratio is generated by dividing a company’s earnings by the total
shareholder’s equity invested in the business. This gives investors an idea about how
profitable a company is too. It is not easy standardize profitability ratios since profits vary
from one industry to another.

1.6.2 Review of Previous Works

Baral (2005) examined the maintaining the high liquidity position to minimize such risk also
adversely effects the banks’ profitability. Return on highly liquid assets will be almost Zero.
Therefore, banks should strike the tradeoff between liquidity position and profitability to
keep their health sound. Commercial banks’ liquidity exposure can be measured by analyzing
the sources and uses of liquidity from the total of sources of liquidity. Different liquidity
exposure ratios such as borrowed funds to total assets, core deposit to total assets, loans to
deposits, and commitments to lend to total assets are used to measure the liquidity position of
a commercial bank.

D’Souza & Megginson (1999) noticed that the significant increases in profitability, output,
operating efficiency, dividend payments and significant decreases in leverage ratios for the
full sample of firms after privatization. They have also concluded that the capital
expenditures increase significantly in absolute terms, but not relative to sales and
Employment declines, but insignificantly. As per findings, they strongly recommended that
privatization yields significant performance improvements.

Codjia, (2010) examined that liquidity Ratio of commercial bank can be measured by
profitability. Financial performance will look at the statement of an accounting corporation
may prepare a statement of financial performance on a monthly? Quarterly or annual basis

16
Bank profitability and bank interest margins can be seen as indicators of the (in) efficiency of
the banking system, as the drive a wedge between the interest rate received by savers on their
deposits an the interest paid by lenders on their loans.

Rasiash, (2010) analyzed that profitability measure is important to the investors of MBB.
This measure of profitability is the most important for stockholders of a bank since it reflects
what the bank is earning on their investments. The advantage of using profitability ratios is
that they are inflation invariant; that is they are not affected by changes in price levels.
Besides that the ROA is a helpful measurement when comparing the profitability of one
company to another, either for those within the same industry or those from a different
industry. Therefore, the ROA is a valuable measure when comparing the profitability of one
bank with another or with the commercial banking system as a whole.

1.7 Research Methodology

Research and methodology refers to the various segmental steps along with the rationale of
each step to be adopted by a researcher in studying a problem with certain activities in view.
In other words, research and methodology described the method and process applied in the
entire aspects of the study.

Methods of Study:

This is an Analytical case of EBL profitability

Type of Data Used

The main source of data is the publication from EBL, which is only secondary source, and
some publications of NRB, MOF, CBS as secondary.

1.7.1 Tools and Techniques of analysis

17
The collected and observed data is tabulated after adjusting necessarily amounts of each
overhead, however for the analysis of the following tools are used.

1.7.2 Financial Tools

There are different types of financial tools that can be applied to the analysis the financial
performance of Everest Bank. For our fieldwork following Ratio analysis tools are used.

1.7.3 Profitability Ratio

 Return on Assets
 Return on Investment
 Return on Equity
 Earnings Per Share

1.8 Limitation of Study

This study is conducted in partial fulfillment of the requirement the BBS. So, it possesses
some limitation of its own.

One of the limitations of the study is, with regard to tempera coverage of illusion regarding
the trend in the pattern and structure of financing a time service of fairy a long period and
needed. But this study has covered only financial year from 2016/017 to 2020/021

 Though there are 27 commercial banks, this study covers only one: Everest Bank Ltd.
 Limited variable have been selected.
 Simple technique has been used in analysis

18
  The qualitative factors such as growth and expansion policy of the bank quality and
general economic conditions have not been studied.

CHAPTER II

RESULT AND ANALYSIS

2.1 Data Presentation and Analysis

This chapter includes the analysis and results of gathered with a view to assessing financial
performance of the bank for the period of 5 years consequently the data are presented,
calculated and analysis.
19
2.2 Financial Analysis

Financial statement analysis generally begins with the calculation of set of financial ratios
designed to reveal the relative strength and weaknesses of a company as compared to other
companies in the same industry and to show weather the firm’s position has been improving
or deteriorating over time.

2.3 Profitability Ratio

Profitability is the net result of a large number of policies and decisions. The ratios examined
thus provide some information about the way the firm operating, but the profitability ratios
show the combined effects of liquidity, assets, management and debt management on
operating results. In this framework report the following profitability ratios are used.

2.3.1 Return on Assets:

It is the ratio of net income to total assets measures the return on total assets (ROA) after
interest and Taxes. This ratio measures the profitability of all financial resources invested in
firm assets. It indicates capacity of the firm assets to earn maximum profit. Higher return is
for any bank. It is measured by this formula.

NPAT
ROA =
Total Assets

Table 1: Return on Assets

F/Y NPAT(In Rs ) Total Assets( In Rs.) Ratio

In(%)
2016/017 2,006,247,780 116,946,280,388 1.71
2017/018 2,581,681,778 144,811,151,443 1.78
2018/019 3,054,122,062 170,077,533,454 1.79

20
 2019/020 2,516,243,710 185,023,189,704 1.36
2020/021 1,770,939,497 211,650,249,438 0.84

Source :( Everest Bank Ltd, Financial Report)

Figure 1: Return on Asset Bar-Diagram of EBL

Return on Assets

1.8
1.75
1.7
1.65
Ratio in %
1.6
1.55
1.5
1.45
1.4
1.35
2014/015 2015/016 2016/017 2017/018 2018/019

Table and figure 1: The return on assets shows that different year ratios i.e.1.71 in 2016/017,
1.78 in 2017/018, 1.79 in 2018/019, 1.36 in 2019/020and 0.84 in 2020/021. The ROA is
decrease up to 2020/021 it means bank is not able to success in driving maximum benefit
from the assets as compares to previous year.

2.3.2 Return on Investment

Return on investment measure the company return from investment or the capacity to
generate profit from investment. This ratio is considered to know the investment generates
income from investment. The high ratio is considered as good performance of company. This
ratio is calculated as follows:

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 NPAT
Return on Investment =
INVESTMENT

Table 2: Return on Investment

F/Y NPAT (In Rs.) Investment (In Ratio in (%)

Rs.)

2016/017 2,006,247,780 6,682,779,007 30.02

2017/018 2,581,681,778 14,482,883,318 17.83

2018/019 3,054,122,062 20,575,139,688 14.84

2019/020 2,516,243,710 27,746,976,485 9.06

2020/021 1,770,939,497 29,329,976,951 6.03

Source :( Everest Bank Ltd, Financial Report)

Figure 2: Return on Investment Bar-Diagram of EBL

Return on Investment

35

30

25

20 Ratio in %

15

10

0
2014/015 2015/016 2016/017 2017/018 2018/019

Table and figure 2: shows that different year ratios i.e. 30.02 in 2016/017, 17.83 in 2017/018,
14.84 in 2018/019, 9.06 in 2019/020 and 6.03 in 2020/021 and it is lowest in last year. It
means investment is not able to generate sufficient income as compared to previous year.

22
2.3.3 Return on Equity:

This ratio is very important tool to judge whether the concern has earn satisfactory returns to
it’s over a not. Here, return refers to the profit after tax. It is the ratio of Net Income after Tax
to common equity measures the return on equity (ROE) or rate of return on the stockholder
investment.

NPAT
Return on equity (ROE) =
Equity

Table 3: Return on Equity of EBL

F/Y NPAT (In Rs.) Equity (In Rs.) Ratio in (%)

2016/2017 2,006,247,780 13,207,514,111 15.19

2017/2018 2,581,681,778 16,134,507,415 16.00

2018/2019 3,054,122,062 17,625,063,404 17.32

2019/2020 2,516,243,710 18,637,356,460 29.70

2020/2021 1,770,939,497 20,683,605,466 19.91

Source :( Everest Bank Ltd, Annual Financial Report)

Figure 3: Return on Equity Trend of EBL

23
 Return on Equity
25

20

15
ROE in %

10 Ratio in %

0
2014/ 2015/ 2016/ 2017/ 2018/
015 016 017 018 019
Fiscal Year

Table and figure 3: the return on equity ratio shows that different year ratios i.e. 15.19 in
2016/017, 16 in 2017/018, 38.04 in 2018/019, 29.70 in 2019/020 and 19.91 in 2020/021 and
The ROE is increasing trend up to 2018/019and decreasing trend up to current year. It is not
good to achieve the goal of wealth maximization in current year at compare to previous year.

2.3.4 Profit Margin

This Ratio shows the relationship between Net Profit after Tax (Net Income) and operating
income. It is to be grater profit margin for any business concern. Profit margin is calculated
as follows.

Net Income
Profit Margin =
Operating Income

Where, Operating Income = Net Income + Interest Expenses + Tax amount

Table 4: Profit Margin

F/Y NPAT (In Rs.) Operating Income (In Rs.) Ratio In

(%)

2016/017 2,006,247,780 3,179,654,040 63.10

2017/018 2,581,681,778 3,685,700,146 70.04

24
 2018/2019 3,054,122,062 4,352,119,508 70.18

2019/2020 2,516,243,710 3,582,691,776 70.23

2020/2021 1,770,939,497 2,548,408,348 69.49

Source :( Everest Bank Ltd, Annual Financial Report)

Figure 4: Profit Margin Trend of EBL

Profit Margin
72
70
68
66
Profit Ratio %

64
62 Ratio In %
60
58
56
01
5
01
6
01
7
01
8
01
9 ge
ra
4/ 5/ 6/ 7/ 8/ e
1 1 1 1 1 Av
20 20 20 20 20
Fiscal Year

Table and figure 4: the Profit margin shows that different year ratios i.e. 63.10 in 2016/017,
70.04 in 2016/017, 70.18 in 2017/018, 70.23 in 2019/020, 69.49 in 2020/021. The profit
margin ratio of EBL shows Profit is increasing up to 2019/020 then decreasing trend up to
current year. It means net profit margin is not good position of the current year compare with
the previous year.

2.3.5 Earning per share:

25
Earning per share (EPS) is the position of company’s profit allocated to each share of
common stock. It is the ratio of Net Profit after Tax to No. of Common Share. It is calculated
by this formula,

NPAT
Earning per Share (EPS) =
No . of common share

Table 5: Earning per Share

F/Y NPAT (In Rs.) No of common share EPS

Ratio
In
(%)

2016/017 2,006,247,780 4,526,426,899 44.32

2017/018 2,581,681,778 8,026,863,347 32.16

2018/019 3,054,122,062 8,026,863,347 38.04

2019/020 2,516,243,710 8,470,206,836 29.70

2020/021 1770939497 8,893,717,178 19.91

Earning per Share

78.036
80
70 65.972
60
50
44.321
40 EPS In (Ratio)
38.048
30 32.163
20
10
0
2014/015
2015/016
2016/017
2017/018
2018/019

26
Table and figure 5: the Earning per share shows that different year ratios..I.e. 44.32 in
2016/017, 32.16 in 2017/018, 38.04 in 2018/019, 29.70 in 2019/020 and 19.91 in 2020/021.
The Earning per share in decreasing trend up to 017/018 and increase in next year then start
to decreasing trend up to current year. And maximum EPS is RS.44.32 and the least price is
19.91. This shows the return of each equity shareholder is in not satisfactory condition.

2.4 Major Finding of the Study

This assignment work report has been prepared as per the format described by the subject
lecture and entitled. “A study of profitability Ratio Analysis of Everest Bank Nepal Ltd.” .
This main chapter contains various subject. The main part of this report is presentation and
analysis of data for the analysis purpose profitability ratio analysis tools have been used to
evaluate the performance of the bank.

The presentation and analysis of data done in this chapter exacts many results and point
regarding different aspects of the bank. However the most and major can pointed out as
follows.

 The return on assets of EBL shows increase up to 2018/019 and then decrease up to
fiscal year 2020/021 it means bank is not success in driving maximum benefit from
the assets as compares to previous year.

 The return on Investment of EBL shows investment is not able to generate sufficient
income as compared to previous year.

 The trend of return on equity (ROE) of EBL shows increasing trend up to 2019/020
and starts to decrease in the current year. It is not good to achieve the goal of wealth
maximization in current year at compare to previous year.

 The profit margin ratio of EBL shows Profit is increasing trend up to 2019/020 then,
decrease in the current year. Because of corona virus it should not give continuity to
this growth trend in future.

27
  Earning Per share of EBL shows decreasing trend up to 017/018 and increase in next
year then decreasing trend up to current year And maximum EPS is RS.44.32 and the
least price is 19.91. This shows the return of each equity shareholder is in not
satisfactory condition.

The graphical presentation of position of profit over different years (i.e. FY 2016/017 to
2020/021) of show that the bank has been successful in increasing it's profit each year up to
2019/2020 then, decrease in current year. Bank and financial institutions are playing an
imperative role in our in our whole economy by providing effective service and collecting
deposits from public and invest the collected depositors in different productivity sector and
earn profit.

Chapter III

SUMMERY AND CONCLUSION

3.1 Summary

Bank and financial institutions are playing in imperative role in our whole economy by
providing effective service and collecting deposits from public and invest the collected
deposits in different productive sector and earn profit. This project work report has been
prepared for fulfillment of the internal assessment of BBS Program. For this purpose, here we
have analyzed the profitability position of the Everest Bank Ltd. To evaluate the profitability
position, we have divided whole report to different chapters.

In every chapter, there are several sub-chapter .The first introduction chapter gives
background information about the project report. The second chapter called presentation and
analysis of data, we tried to analyze its profitability position through different ratio analysis.
By using this financial tool, we computed different ratio to evaluate profitability position of
the bank.

28
In this fieldwork report we study about EBL profitability and we found the financial position
of Everest Bank Ltd. is better.

3.2 Conclusion

Profitability means ability to make profit from all the business activities of an organization,
company, firm, or an enterprise. It shows how efficiently the management can make profit by
using all the resources available in the market. The banking service provided by Everest Bank
Ltd. is very effective, influence and broad. The bank had also been fulfilling the Nepal Rastra
Bank in Investment sector.

In this project work report, we study about Everest Profitability position. We found the
profitability position of the EBL in recent year 2020/021 is not satisfactory as compared to
previous year. We have use profitability ratio analysis tools (i.e. ROA, ROE, Net Profit
Margin, Return on Investment, EPS) which is determine the profitability and their effect of
financial activities. Because of corona virus every sector are affected. It should be negative or
positive impact in our banking sector. May be, It should give continuity to this growth trend
in future

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Annual report of EBL (2016/017 to 2020/021).

<http://www.investopedia.com/terms/p/profitabilityratios.asp>

www.ebl.com.np

Appendices

EBL

Details 2016/017 2017/018 2018/019 2019/020 2020/021

Profitability Ratio
Return on Equity % 15.19 16 17.32 29.70 19.91
Return on Assets % 1.71 1.78 1.79 1.36 0.84
Profit margin % 63.10 70.04 70.18 70.23 69.49
Re. on Investment %
30.02 17.83 14.84 9.06 6.03
Earning Per Share (RS.)
44.32 32.16 38.04 29.70 19.91

31