LIQUIDITY AND PROFITABILITY ANALYSIS

OF EVEREST BANK LIMITED

A Project Work Report

Submitted By:

RupeshAdhikari

T.U. Regd.No:7-2-729-67-2016

Symbol No:

Lumbini Academic College

Submitted To:

The Faculty of Management

Tirbhuvan University

Kathmandu

In Partial Fulfillment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Chabahil, Chuchepati, Kathmandu

Date: Nov. 2020

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 DECLARATION

I hereby declare that the project work entitled “ LIQUIDITY AND PROFITABILITY
ANALYSISOF EVEREST BANK LIMITED”submitted to the Faculty of Management,
Tribhuvan University, Kathmandu is an original piece of work under the supervision of Ms.
Rushma Adhikari, faculty member, Lumbini Academic College, Chuchepati,
Kathmandu, and is submitted in partial fulfillment of the requirements for the degree of
Bachelor of Business Studies (BBS). This project work report submitted is my original work
and the project work has not formed the basis for the award of any degree, diploma, or other
similar titles.

……………………………………

RupeshAdhikari

Lumbini Academic College

Date: Nov. 2020

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 SUPERVISOR’S RECOMMENDATION

The project work report entitled “ LIQUIDITY AND PROFITABILITY ANALYSIS OF

EVEREST BANK LIMITED” submitted by RupeshAdhikari of LumbiniAcademic
College, Chuchepati, Chabahil, Kathmandu, 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.

............................................

Mrs. Rushma Adhikari

Supervisor

Lumbini Academic College

Date: Nov. 2020

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 ENDORSEMENT

We hereby endorse the project work report entitled, “LIQUIDITYAND PROFITABILITY

ANALYSIS OF EVEREST BANK LIMITED” submitted by RupeshAdhikari of Lumbini
Academic College, Chuchepati, Chabahil, Kathmandu, in partial fulfillment of the
requirements for award of the Bachelor of Business Studies (BBS) for external evaluation.

..................................... ......................................

Mr Suman Pd. Chaudhary Mr. Rabin Chandra Koirala

Chair Person Principal

Management Research Committee Lumbini Academic College

Date: Nov. 2020 Date: Nov. 2020

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 ACKNOWLEDGEMENTS

This report has been prepared to fulfill the partial requirements for the Degree of Bachelors
of Business Studies (BBS), Tribhuvan University, Kathmandu, Nepal. In the process of
preparation of this project, I got a lot of inspiration, Co-operation and Suggestion from
various persons.

Firstly, I owe a debt of gratitude to my respected adviser Ms. RushmaAdhikari, our

supervisor who provide a valuable support and suggestion in the process of preparation of
this report. I am extremely indebted by her efforts despite of her busy schedule.

I am also indebted to my respected teachers of Lumbini Academic College, who have

assisted from their respected sectors I would like to thank Tribhuvan University for providing
us chance and allowing me for this study.

I would like to express heartful thanks towards all the members of my family who provided
regular inspiration and continuous contribution for my success. I would also like to thank my
friends who helped me a lot in finalizing this project work within limited time frame.

Thank You!

RupeshAdhikari

Lumbini Academic College

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 TABLE OF CONTENTS

Title Page i
Declaration ii
Supervisor’s Recommendation iii
Endorsement iv
Acknowledgement v
Table of Contents vi
List of Tables vii
List of Figures viii
Abbreviations ix
CHAPTER-I: INTRODUCTION
1.1 Background of the study 1
1.2 Profile of the organization 2
1.3 Need and scope of the study 3
1.4 Statement of Problem 3
1.5 Objective of the study 4
1.6 Significance of the study 4
1.7 Research Methodology 4
1.8 Limitation of the study 10
1.9 Review of Literature 10
CHAPTER-II: DATA PRESENTATION AND ANALYSIS
2.1 Data presentation and Analysis 14
2.2 Analysis of results 23
2.3 Major Finding 24
CHAPTER-III: SUMMARY AND CONCLUSION
3.1 Summary 26
3.2 Conclusion 26
BIBLOGRAPHY 28

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 LIST OF TABLES

Tables Topic Page No.

Table 2.1 Current Ratio 14

Table 2.2 Quick Ratio 16

Table 2.3 Cash and Bank Balance to Total Deposits Ratio 17

Table 2.4 Liquid fund to total deposit ratio 18

Table 2.5 Return on Assets 19

Table 2.6 Return on Equity 21

Table 2.7 Earning per share 22

Table 2.8 Arithmetic Mean and Standard Deviation of Liquidity Ratios 23

Table 2.9 Arithmetic Mean and Standard Deviation of Profitability Ratio 24

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 List of Figures

Figures Topic Page No.

Figure 2.1 : Current Ratio 15

Figure 2.2 : Quick Ratio 16

Figure 2.3 : Cash and Bank Balance to Total Deposits Ratio 17

Figure 2.4 : Liquid Fund to Total Deposit Ratio 19

Figure 2.5 : Return on Assets 20

Figure 2.6 : Return on Equity 21

Figure 2.7 : Earning Per Share 22

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 Abbreviation

B.S : Bikram Sambat

CRR : Cash Reserve Ratio
F.Y : Fiscal Year
S.D : Standard Deviation
Prof. : Professional
etc : Etcetera
EBL : Everest Bank Limited
BAFIA : Bank and Financial Institutions Act
CBTDR : Cash and Bank Balance to Total Deposits Ratio
CHTDR : Cash in Hand to Total Deposits Ratio
NBL : Nepal Bank Limited
NRB : Nepal Rastra Bank
ROA : Return on Assets
ROE : Return on Equity
Rs. : Rupees
& : And

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