RATIO ANALYSIS OF

FINANCIAL PERFORMANCE OF EVEREST BANK LIMITED

A Project Work Report

Submitted by:
Durgawati Kurmi
T.U.Regd.No: 7-2-1220-14-2019
Exam Roll No : 712200005
Suryapura Multiple Campus

Submitted to:
Suryapura Multiple Campus
The Faculty of Management
Tribhuvan University
Kathmandu, Nepal

In partial fulfillment of the requirements for the degree of

BACHELOR OF BUSINESS STUDIES(BBS)

Gaidahawa-06 Suryapura ,Rupandehi

April,2024
 Declaration

I hereby declare that the project work entitled “RATIO ANALYSIS OF THE FINANCIAL
PERFORMANCE OF EVEREST BANK LIMITED” submitted to the Faculty of
Management, Tribhuvan University, Kathmandu is an original piece of work under the
supervision of Ramu Muraw, faculty member, Suryapura Multiple Campus and is submitted
in partial fulfillment of the requirements for the award of the degree of Bachelor of Business
Studies (BBS). This project work report has not been submitted to any other university or
institution for the award of any degree or diploma.

Durgawati Kurmi
Date:

ii
 Supervisor’s Recommendation

The project work report entitled “RATIO ANALYSIS OF FINANCIAL PERFORMANCE

OF EVEREST BANK LIMITED” Submitted by Durgawati Kurmi of Suryapura Multiple
Campus is prepared under my supervision as per the procedure and format requirements laid
by the Faculty of Management, Tribhuvan University, as partial fulfillment of the requirements
for the award of the degree of Bachelor of Business Studies (BBS). I, therefore, recommend the
project work report for evaluation.

……………………………..
Mr. Ramu Muraw
Date:

iii
 Endorsement

We hereby endorse the project work report entitled “RATIO ANALYSIS OF FINANCIAL
PERFORMANCE OF EVEREST BANK LIMITED” submitted by Durgawati Kurmi of
YOUR COLLEGE NAME, in partial fulfillment of the requirements for award of the
Bachelor of Business Studies (BBS) for external evaluation.

Dinesh Chaudhary Kailash Yadav

Chairman, Research Committee Campus Chief:
Date: Date:

iv
 Acknowledgements

This field work report entitled "A Report on RATIO ANALYSIS OF FINANCIAL
PERFORMANCE OF EVEREST BANK LIMITED” has been prepared in partial
fulfillment for the degree of Bachelor of Business Studies (BBS) under the teachers of
Suryapura Multiple Campus. It is my privilege of getting helps and cooperation from different
persons. It is not possible to enumerate the names of all of them. However, it will be matter of
injustice if I forget the names of those personalities whose valuable suggestions and co-
operation escorted to complete this field work report. First and foremost, I would like to offer
special thanks to Ramu Muraw for their proper suggestions. I would like to thank all the staff
of the Everest Bank Limited for their full support in providing all the necessary data, which
helped me in preparing this report. I could not remain without thanking to my teachers and
lecturers who all helped me during my study of BBS and during preparation of this report.

Durgawati Kurmi
BBS 4th Year
Suryapura Multiple Campus

v
 Table of Contents
Topic Page
Declaration..................................................................................................................................ii
Supervisor’s Recommendation...................................................................................................iii
Endorsement................................................................................................................................iv
Acknowledgements .....................................................................................................................v
Table of Contents.........................................................................................................................vi
List of tables: .............................................................................................................................viii
List of graphs: ..............................................................................................................................ix
Abbreviations................................................................................................................................x
CHAPTER-I.................................................................................................................................1
INTRODUCTION.......................................................................................................................1
1.1. Background of the Study ............................................................................................1
1.1.1. Meaning of Financial Analysis.................................................................................1
1.1.2. Elements of the Financial analysis: .........................................................................1
1.1.3. Commercial Banking Scenario in Nepal..................................................................3
1.2. Profile of Organization ...............................................................................................3
1.2.1 Shareholding Composition........................................................................................5
1.2.2. EBL Network Overview .........................................................................................5
1.2.3. No. of Staff: 836 (As of July 16, 2018)...................................................................6
1.2.4. Composition of Board of Directors .........................................................................6
1.3. Statement of Problem..................................................................................................6
1.4. Objectives of the Study ..............................................................................................7
1.5. Rationale of the Study.................................................................................................7
1.6. Review Of Literature ..................................................................................................8
1.7. Method of study.........................................................................................................11
1.7.1 Research Design:.....................................................................................................11
vi
 1.7.2 Population and Sample............................................................................................12
1.7.3 Nature and Sources of Data ....................................................................................12
1.7.4 Data Processing Procedures....................................................................................13
1.7.5 Data Analysis Tools ...............................................................................................13
1.8. Limitation of the study..............................................................................................17
CHAPTER - II...........................................................................................................................19
RESULTS AND FINDINGS ....................................................................................................19
2.1 Introduction: ..............................................................................................................19
2.2 Financial Statement Analysis: ...................................................................................19
2.2.1 Liquidity Ratio:.......................................................................................................19
2.2.2 Profitability Ratio:...................................................................................................26
2.2.3 Assets Management Ratio:......................................................................................33
CHAPTER - III..........................................................................................................................40
SUMMARY AND CONCLUSION .........................................................................................40
3.1 Summary.....................................................................................................................40
3.2 Conclusion .................................................................................................................40
BIBLIOGRAPHY....................................................................................................................
APPENDICES..............................................................................
Questionnaire ...............................................................................

vii
 List of tables:
Table 1: Cash and Bank Balance to Investment Ratio

Table 2: Cash and Bank Balance to Total Deposit Ratio

Table 3: Cash and Bank balance to Total Assets Ratio

Table 4: Current Ratio

Table 5: Return on Shareholder’s Fund

Table 6: Return on Total Assets

Table 7: Earning Per Share

Table 8: Dividend per Share

Table 9: Loan and Advances to Fixed Deposit Ratio

Table 10: Loan and Advances to Total Deposit Ratio

Table 11: Loan and Advances to Total Assets

viii
 List of graphs:

Graph 1: Cash and Bank Balance to Investment Ratio

Graph 2: Cash and Bank Balance to Total Deposit Ratio

Graph 3: Cash and Bank balance to Total Assets Ratio

Graph 4: Current Ratio

Graph 5: Return on Shareholder’s Fund

Graph 6: Return on Total Assets

Graph 7: Earning Per Share

Graph 8: Dividend per Share

Graph 9: Loan and Advances to Fixed Deposit Ratio

Graph 10: Loan and Advances to Total Deposit Ratio

Graph 11: Loan and Advances to Total Assets

ix
 Abbreviations

CB : Commercial Bank

CEO : Chief Executive Officer

CBB : Cash and Bank Balance

CV : Coefficient of Variation

DPS : Dividend per Share

EBL : Everest Bank Limited

EPS : Earnings per Share

i.e. : That is

Ltd. : Limited

NRB : Nepal Rastra Bank

NPAT : Net Profit After Tax

P&L Account : Profit and Loss Account

ROA : Return on Assets

ROE : Return on Equity

SD : Standard Deviation

TD : Total Deposit