A Summer Project On Profitability Analysis On Rastriya Banijya Bank

A STUDY ON
PROFITABILITY CONDITION OF RASTRIYA BANIJYA

BANK, THAPATHALI
Submitted By: Topha Kandel
Symbol No: 17450294
P.U. Registration No: 2017-2-45-0060
Level: BBA-BI, 5th semester
A SUMMER PROJECT REPORT
Submitted to: Apollo International College
Lakhechaur Marg, Baneshwor,Kathmandu
In Partial Fulfillment of the requirement for the degree of
Bachelor of Business Administration Banking and Insurance (B.B.A-BI)
December, 2020
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DECLARATION
I hereby declare that the project work report entitled “A Study on Profitability Condition of
Rastriya Banijya Bank, New Baneshwor” submitted by me in the partial fulfillment of the
requirement for BBA-BI degree of Pokhara University,it is my original work and the Project
Work Report has not formed the basis for the award of any degree, diploma, or other similar
titles.
Signature……………………
Topha Kandel
March 19, 2020
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ACKNOWLEDGEMENT
This project work report “A Study on Profitability Analysis of Rastriya Banijya Bank, New
Baneshwor” has been prepared in the partial fulfillment for the degree of bachelor of business
administration banking and insurance (BBA-BI) under the course designed by the faculty of
management of Pokhara University. This study has been prepared to examine the Profitability
Analysis of Rastriya Banijya Bank.
First of all, I would like to thank Pokhara University for including the project report in our BBA-
BI 5th semester program. This gives us chance for gaining practical knowledge to boost our
research skills.
I am indebted to Rastriya Banijya Bank, New Baneshwor for their great support for
completion of my project report. Thanks to all those writer and researchers whose materials and
methods has been review wherever necessary during the study period as a reference.
.Finally, I wish to acknowledge my gratitude teachers and friends of Apollo International

College who directly and indirectly help me with their valuable suggestions for completion of
this work.
Topha Kandel
BBA-BI 5th semester
Apollo International College
March, 2020
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ABBREVIATIONS
A.D. - Anno Domino
ATM – Automated Teller
Machine CEO- Chief Executive
Officer Ltd. – Limited
RBB- Rastriya Banijya Bank
BBA- Bachelor of Business Administration
NRB – Nepal Rastra Bank
F/Y- Fiscal Year
PU- Pokhara University
i.e. – That is
1st –First
2nd – Second
3rd – Third
4rth – Fourth
5th – Fifth
6th –Sixth
- Increment
- Decrement
% Percentage
iv
TABLE OF CONTENTS
Titles Pages
Declaration ii
Certificate
Acknowledgement iii
Abbreviation iv
Table of contents v
List of Tables vi
CHAPTER-1: INTRODUCTION 8-11
• Background of the Study 8
• Objectives of the Study 9
• Scope of the Study 9
• Limitation of the Study 10
• Importance of the Study 10
• Organization of the Study 11
CHAPTER-2: LITERATURE REVIEW 12-15
2.1 Meaning of Literature Review 12
2.2 Objectives of Literature Review 12
2.3 Review of Related Studies 13
CHAPTER-3: RESEARCH METHODOLOGY 16-19
v
3.1 Meaning of Research Methodology 16
3.2 Research Design 16
3.3 Nature and Source of Data 16
3.4 Decision of Sample 18
3.5 Data Collection Procedure 19
3.6 Data Processing 19
3.7 Data Analysis Tools 19
3.8 Data Interpretation Techniques 19
CHAPTER-4: DATA PRESENTATION, ANALYSIS 20-27
AND FINDINGS
4.1 Data Analysis 21
4.1.1 Net Profit margin 21
4.1.2 Gross Profit Margin 23
4.1.3 Return On Assets (ROA) 25
4.1.4 Return on Equity (ROE) 26
4.1.5 Earning Per Share 27
4.2 Major Findings 27
CHAPTER-5: SUMMARY AND CONCLUSION 28-29
Summary 28
5.2 Conclusion 29
BIBLIOGRAPHY 30
vi
APPENDICES
LIST OF TABLES
Tables Pages
4.1.1 Return on Equity 14
4.1.2 Return on Assets 15
4.1.3 Net Profit Margin 16
4.1.4 Gross Profit Margin 17
4.1.5 Earning Per Share 18
vii
viii
CHAPTER-1
INTRODUCTION
1.2 Background of the Study.
A bank is an institution that provides services, such as accepting deposits, giving

business loans and basic investment products. Commercial bank can also refers to a bank or a
division of a bank that mostly deals with deposits and loans from corporations or large
businesses, as opposed to individuals members of the public. Commercial banks are typically
concerned with managing withdrawals and receiving deposits as well as supplying short-term
loans to individuals and small businesses. The name bank derives from the Italian word banco
“desk/bench”, used during the renaissance era by Florentine bankers. The first bank of Nepal Is
Nepal Bank Limited which was established in 1937. It is located in Dharmapath Kathmandu
Nepal.
Rastriya Banijya Bank is fully government owned and the largest commercial bank
of Nepal. RBB is established on January 23, 1966 (2022 Magh 10 BS) under the RBB Act. RBB
provides various banking services to a wide range of customers including banks, insurance
companies, industrial trading houses, airlines, hotels, and many other sectors. RBB has Nepal's
most extensive banking network with 236 branches.
Rastriya Banijya Bank is one of the pioneering banks in the Nepalese

market that has carried out Note Kosh Fund, Bharu Kosh Fund, NRB's draft transaction,
government transaction, and pension fund of the Nepal government. Besides more than two
dozen banks' branches are running in losses, they provides continue services to the general public
because it is the government bank. Profit is not the only motive of the bank. RBB provides
services in remote and undeveloped areas of Nepal.
RBB has a history of contributing for the monetization of the economy, eliminating dual
currency in the market, initiating preliminary financial literacy, and helping industrial,
commercial and financial sector of the country to flourish. It is a modern and strong financial
institute of the country. With 2600 hands, it has expanded its wings in the most part of the
8
country through
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multiple distribution outlets of 236 branches, 17 counters, 93 branchless banking (BLB) and 165
ATMs. It has high public confidence, reflected in the highest deposit base and growing demand
for branch establishment in the various parts. The bank with as many as 1.7 million satisfied
direct customers ranging from poor to elite ones and millions of indirect ones, has drawn
important imprint in the picture of the country's economy through its significant involvement in
the best use of its resources to enhance the production, income and employment opportunities.
Services currently offered by RBB:
 Credit
o Business loan
o Housing loan
o Vehicle loan
o Hire purchase loan
o Educational loan
o Apartment loan
1.2 Objectives of the Study
The Objectives of the Study are as follows.
 To measure the firms ability to pay short term and long term obligation.
 To study the growth of business in terms of share.
 To measure the firms profitability performance.
 To suggest on findings.
1.3 Scope of the study
Scope refers to the extent of the area or subject matter that something deals with or to which it is
relevant. The scope of the study is that it covers the Profitability Condition of Rastriya Banijya
Bank and suggest the necessary some measures for the improvement of the financial
performance of the company. The major scope of the study is given below.
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 Stakeholders can analyze the level of profitability condition in Rastriya Banijya
Bank, New Baneshwor.
• The study can also be used for making comparison with other competitors.
• It can also be used as a base for performance evaluation.
1.4 Limitations of the Study
Limitations are the restriction that can affect the result of the study. Its Limitations are those
events, things, variables, information etc. that are outside of the scope of this study. The
limitations of this project work are as follows.
The conclusion of this study may not be applied in other banks since the study is on
Rastriya Banijya Bank.
1.5 Importance of the Study
After completing this study, it will help different group of people and institutions. However, the
major importance are as follows.
• To the Researcher Herself
Through this study, Researcher herself enhanced and enriched her knowledge, skill,
experience like; communication, leadership, conflict resolution, time management,
adaptability, self motivation, creativity, etc. by analyzing the profitability condition of
Rastriya Banijya Bank, New Baneshwor
 To the Bank
This study provides important information to the bank. This study shows the accurate or
true picture of the profitability condition of Rastriya Banijya Bank’s and provides
feedback.
 To the Information Seeker
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Information seekers are those who want to get information about some specific field or
topic. This study provides effective information to the information seekers regarding
profitability condition of Rastriya Banijya Bank, Thapathali.
 To Enrich Library Assets
Library assets include; book, articles, theses, documentaries, etc. This study enriches
library assets for the reader because one piece of this report will be kept in the library.
1.6 Organization of the Study
Organization of the study includes the formation of the chapters. This study has been divided
into five chapters along with the bibliography and appendix at last.
The first chapter of this study is Introduction which includes the background objectives, scope,
limitation, importance and organization of the study.
Similarly, the second chapter of this study is literature review which presents a review of
literature, its objectives, review of related studies and relevant research associated with this
study.
The third chapter of this study is research methodology which presents the methodology,
research design, nature and sources, processing, procedures, analysis, interpretation of the data
and presentation of the results.
And finally, the fifth chapter of this study offers a summary and conclusion of the study’s
suggestions, findings, implications for practice, and recommendations for future research.
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CHAPTER-2
LITERATURE REVIEW
2.1 Meaning of Literature Review
A Literature review is a scholarly paper, which includes the current knowledge including
substantive findings, as well as theoretical and methodological contributions to a particular topic.
Literature reviews are secondary sources, and do not report new or original experimental work.
According to Arlene Fink, (2005) “A Literature Review is a systematic, explicit, and

reproducible method for identifying, evaluating, and synthesizing the existing body of
completed and recorded work produced by researcher, scholars and practioners.( Page 30-
Business Research Method)
According to P.Haywood and E.C Wragg (1996). “A literature review is the process of
locating, obtaining, reading, and evaluating the research literature in the area of tour interest ”
(Page 34-Business Research Method)
According to Cardesco and Gatner,(1986) “A literature review is self-contained unit in a study

which analyses critically a segment of published body of knowledge through summary,
classification and comparison of prior research studies and theoretical articles.” (Page No 35-
Business Research Method )
2.2 Objectives of Literature Review
The major objectives of literature review are given below.
• To recognize or identify the research gap.
• To elaborate or establish theoretical framework and research design.
• To highlight and critique research method.
• To know the methods of data collection and data analysis.
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• To get the information about current issues.
• To develop the theoretical arguments or main concepts of the subjects.
2.3 Review of Related Study
There are so many related studies conducted by previous researchers but it is quite impossible to
review all these studies. Therefore, only four related studies are review.
 One Study on “Profitability Analysis of Nabil Bank”, (2007) by Poshan Raj Basnet had
the following objectives.
• To highlight the role of commercial banks in Nepal
• To evaluate the profitability and solvency position of Nabil Bank.
• To suggest and recommend some measure on the basis of the study of financial
performance evaluation and findings for the improvement of financial position of Nabil Bank in
future.
The major findings of the study are as follows.
• The exchange gain to total income ratio shows an increasing trend as compared to
the base year, which is beneficial to the bank. The minimum index value is 107.23 as that of
2002/2003 and the maximum index value is 130.0 as that of 2004/2005.
• The return on assets of Nabil Bank shows an increasing trend and has maximum index
value of 198.05 in the year 2004/2005 as compared to base year 2001/2002 i.e. 100. It shows
that Nabil Bank is successful in deriving benefit from the assets it has used.
• The staff express to total income ratio of Nabil Bank has increased by 66.85% in
the year 2002/2003. The minimum increased level of staff expenses compared to total
income is 42.65% during the recent year 2005/2006. It shows that Nabil Bank is successful
in cutting down extra unnecessary expenses related to staffs.
• The earnings per share of Nabil Bank increase continuously during the year
2001/2002 to 2005/2006. This shows the return of each equity shareholder is in satisfactory
condition.
1
 An Another Study on “Profitability Analysis of Nepal Credit and Commercial
Bank Limited”, (2014) by Pradipta Shrama had the following objectives.
• To find the financial information that assists in estimating the earnings potential of
the enterprises.
• To evaluate profitability position of NCC Bank Ltd.
• To know ability of firm to reflect the financial solvency of the firm.
The major findings of the study are given below.
• The ROE is not constant. It is decreasing in first 3 year and there is slightly increment
in year 2069/2070 which is 0.1757. The highest ROE is 0.2783 and lowest is 0.0924 in
2068/2069 due to the low profit and high equity.
• The ROA is decreasing in first 3 years and slightly increases which is 0.163 in
year 2069/70. The highest ROA is 0.0332 and lowest is 0.0096 in year 2066/67 and
2068/69 respectively. It decreases due to less profit and heavy investment on assets.
• The ISR is not in constant position. It is declining position due to less income and more
expenses. The highest ISR is 3.62 and lowest is 2.52 in a year 2066/67 and 2068/69
respectively. At last year 2070/71 there is 3.01 ISR.
• The NPR is also not constant. It is decreasing due to large margin between net profit
and total revenue. The highest NPR is 40.66% in year 2066/67 lowest is 11.70% in 2068/69 and
17.70% in year 2070/71.
• The GPR is decreasing in first 3 years and increases in 2069/70 which is 40.87%.
The highest GPR is 44.33% lowest is 30.86% in 2066/67 and 2068/69 respectively.
• The EPS is decreasing in first 3 years due to less profit and increases in last 2 years
which is 26.49% and 26.33%. The highest EPS is 30.27 in year 2066/67 and lowest in year
2068/69.
 The Last Study on “Position of Profitability in Kumari Bank Limited”, (2013) by

Yadav B.k had the following objectives.
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• To demonstrate position of Kumari Bank Ltd.
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• To find out the profitability of Kumari Bank Limited.
• Return on assets.
• Return on shareholder’s equity.
• Net profit margin
• Market value per share (MVPS)
• Earnings per share (EPS)
• To show the situation of profit of Kumari Bank Ltd.
• To provide effective recommendation regarding banking business.
• To find goings trends especially.
The major findings of the study are as follows.
• Return on shareholder’s equity is in fluctuating trend which shows the average result
i.e. the soundness in Kumari Bank Ltd’s fund is satisfactory.
• Return on assets is also in fluctuating trend which reflects that the Kumari Bank Ltd
is satisfactory.
• Return of fixed assets shows same result as ROE and ROA.
• Earnings per share of the Kumari Bank Ltd. were good in 2007/2008 than 2005/06 and
2006/07, but it is in decreasing trend in 2008/09 and 2009/10 increasing trend or 2010/11 was
in decreasing trend.
• Market value of Kumari Bank Ltd’s share is in increasing trend, which means
the Bank’s earning is in increasing year by year and customers are positive towards the
Bank.
• From above information, it is clear that the Bank is conscious about the services for
its customers. So, the Bank is using advance technology for fast and less cost services to the
customers.
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CHAPTER-3
RESEARCH
METHODOLOGY
3.1 Meaning of Research Methodology

Research Methodology is the systematic, theoretical analysis of the methods applied to a field of
study.
According to S Rajasekar, (2006) “It is a science of studying how research is to be carried
out. Essentially, the procedures by which researchers go about their work of describing,
explaining and predicting phenomena are called research methodology. It is also defined as the
study of methods by which knowledge is gained.”
According to Mouley (1994), “Research Methodology is the process of arriving at dependable
solution to the problem through the planned and systematic collection, analysis and interpretation
of data.”
3.2 Research Design

Research Design is a framework of research which helps to collection, measurement and analysis
of data.
There are various types of Research Designs they are as follows.
• Exploratory Research Design
• Descriptive Research Design
• Correlation Research Design
• Causal comparative Research Design
• Experimental Research Design
• Quasi-Experimental Research Design
This project work is based on Descriptive Research Design. Descriptive research design is such
research design that is developed with the aim of studying the subject of research in detail and
explains the facts and characteristics related to the research problem.
3.3 Nature and Sources of Data

The information or facts collected through record, observation and measurement is known as
nature of data. The nature of data depends upon the nature of subject matter. Generally data are
of two types that are primary and secondary.
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 Primary Data
Data that has been collecting by the researcher himself/herself as per the objective of the project
work is known as primary data. It means someone collected thee data from the original source
i.e. first hand.
 Secondary Data
A researcher uses the data developed by others in the past for their own purpose is known as
secondary data.
In this research, the secondary data are used. They are balance sheets and income statements.
The sources of data are the sources from where researchers obtain the data. The sources of data
depend upon the nature of data. Primary data have primary sources and secondary data have
secondary sources. Generally sources of data are of two types.
• Published printed sources
• Published electronic sources
This project work or research has obtained data from published electronic sources i.e. internet.
The data have been collected from published annual report of Rastriya Banijya Bank through
the official websites of the bank.
3.4 Decision of Sample

Sample refers to the representative portion of the population, selecting among the entire
population.
There are two types of sampling methods
• Probability Sampling Method
• Sample random sampling
• Systematic sampling
• Stratified sampling
• Non- probability sampling
• Judgmental sampling
• Quota Sampling
• Convenience sampling
• Snowball sampling
• In this project work judgmental sampling methods is used. A judgmental sampling is a
method where sample are selected by the researcher based on his or her interest.
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3.5 Data Collection Procedure
Data collection refers to the searching the required or necessary data for the project work. Data
collection procedure is the steps that are followed to gather the required data. There are two
procedures to collect the data they are.
• Primary data collection procedure
Primary data collection procedure is a process of collecting the data, through primary sources i.e.
questionnaire, observation, interview, etc.
• Secondary data collection procedure
Secondary data collection procedure is a process of collecting the data, through secondary sources
i.e. journals, articles, internet, etc.
In this project work, the researcher has taken the data through secondary data collection procedure
i.e. internet.
3.6 Data Processing
Data Processing is act of refining and manipulating the items of data to produce meaningful
information. Scientific data processing techniques is used to make data valid, simple and reliable.
Data processing includes sorting, grouping and tabulating.
Sorting refers to the separating the needed data from many among data.
Grouping is the process of accumulating similar items into various classes
Tabulating refers to the process of arranging data in a systematic manner into rows and columns.
This project work has used necessary tabulation that shows the percentage calculation and their
representation.
3.7 Data Analysis Tool
Data analysis tools are the means that a researcher uses for analysis and presenting the data.
Analytical tools may be financial, statistical or mathematical. But the design used for this project
work is financial and mathematical. So, these tools are suited to this research.
• Financial tools
• Return on Equity= Net income/Total equity
• Return on Assets= Net income/ Total assets
• Net Profit Margin= Net Profit/Sales Revenue
• Gross Profit Margin= Gross Profit/Sales Revenue
2
• Earning Per Share=Net Income/No. of share outstanding
• Mathematical tools
• Percentage
3.8 Data Interpretation Techniques
There are different data interpretative techniques that are used in any research. But only three
techniques are used in this report.
In the first paragraph, only the calculated values are explained.
In the second paragraph, the researcher has mentioned central understanding of the explanation
In the last paragraph, the researcher has mentioned the expected causes or reasons for
improvement of negative results.
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CHAPTER-4
DATA PRESENTATION, ANALYSIS, INTERPRETATION AND

FINDING
The unit/chapter of research work/project-work is very important. This unit is prepared by

using the research methodology stated in the third unit/chapter. For this purpose, the required
data were collected; necessary calculations were done using financial tools and suitable tables
have been prepared. The calculated data have been presented in the prepared tables. The analysis
and interpretation part is under each table. To present a clear pictures of the calculated result, bar
diagrams are also used. This unit/chapter has particularly, the following.
4.1 Data Presentations, analysis and interpretation
4.2 Findings of analysis
4.1 Data presentation, analysis is of the following
 Net Profit Margin

 Gross Profit Margin
 Return on Assets
 Return on Equity
 Earning Per Share
4.1.1. Net Profit Margin (2072-2076)
The calculated 5 years Net Profit Margin values and their have been presented in Table 4.1.1
Table 4.1.1: Net Profit Margin
Years Calculated values Increase/Decrease

2072 83.23% -
2073 35.79% - 47.44%
2
2074 37.67% 1.88%
2075 44% 6.33%

2076 42.70% - 1.3%
Source: Financial Statements of Rastriya Banijya Bank , (2072-2076)
Table 4.1.1 shows the changes in Net Profit Margin of Rastriya Banijya Bank from the period
2072-2076. The highest NPM is 83.23% in 2072 and the lowest NPM is 35.79% in 2073.
NPM decreased in 2073 and came to be (-47.44%) and increased in 2074 and 2075 (1.88%)
and
(6.33%). Again, it decreased in 2076(-1.3%).
The above calculation shows that Net Profit Margin is in fluctuating trend. Net Profit Margin
decreases in 2072-2072 due to the decreases in current deposit. Net profit margin increased in
2073-2074 due to the increase in net profit. This shows the average performance of RBB.
The value is in fluctuating trend because of following reasons:
 Due to the higher cost of good sold, the net profit margin is going down.
 Due to higher interest income.
 Due to decrease in revenues.
The same data is presented in the same bar graph.
90
80
70
60
50
40
30
20
10
0
2072 2073 2074 2075 2076
Series 1
2
4.1.2. Gross Profit Margin
The calculated 5 years Net Profit Margin values and their have been presented in Table
4.1.1. Table 4.1.2: Gross Profit Margin
Years Calculated values Difference in values

2072 82.23% -
2073 84.33% 2.8%
2074 85.28% 0.95%
2075 88.29% 3.01
2076 85.90% -2.39
Source: Financial Statements of Rastriya Banijya Bank, (2072-2076)
Table 4.1.2. shows the changes in Gross Profit Margin of Rastriya Banijya Bank from the period
2072-2076.The highest GPM is 88.29% in 2075. Since 2073,it is continuously increasing(2.8% ),
in 2074 (0.95%) and in 2075 (1.97%).In 2076 it is decreased (-2.39).
The above calculation shows that Gross Profit Margin going in increasing trend. Gross profit
margin is increased in 2072 to 2074 due to the increase in net interest income. In the 2076
decrease due to decrease in net income.
The reason behind this trend are as follows:
 Due to increase in cost of good sold.

 Due to increment and decrement in the interest expenses.
2
The same data is presented in the same bar graph:
Series 1
89
88
87
86
85
84
83
82
81
80
79
2072 2073 2073 2075 2076
Series 1
Fig 4.1.2 Gross Profit Margin
4.1.3. Return on Assets
The following table contains the value of ROA of 5 years.
Table 3: Return on assets
Years Calculated values Increase/decrease

2072 3.30% -
2073 1.415% -1.885%
2074 1.72% 0.575
2075 3.47% 1.75%
2076 0.9742% -2.50
Source: Financial statements of Rastriya Banijya Bank, (2072-2076)
Table 4.1.3 shows that changes in ROAof Rastriya Banijya Bank from the period 2072-2076.The
highest ROA is 3.30% and the lowest ROA is 0.9742%. In 2073 ROA is decreased and came to
be (-1.885%). And in 2074 and 2075 , it is increased (+0.575%) and (+1.75) But in 2076, ROA
has increased and came to be (-2.50%).
2
The above calculation shows that ROA is in fluctuating trend. ROA decrease in 2073 due to the
lower net income. And in 2074 and 2075 ROA increase due to the higher net income. ROA
decreased in 2076 due to decrease net profit. This shows the average performance of RBB.
 Due to the higher net income

 Due to the efficiently and effectively use of bank’s assets
The same data is presented in the same bar graph
Series 1
3.5
2.5
1.5
0.5
0
2072 2073 2074 2075 2076
Series 1
4.1.4. Return on Equity
The following table contains the value of ROE of 5 years.
Table 4.: Return on Equity

2072 53.50% -
2073 64.62% 11.12%
2074 35.89% -28.73%
2
2075 72.07% 36.18%
2076 9.13% -62.94
Table 4.1.4 shows the changes in ROE of Rastriya Banijya Bank. The highest ROE is 72.07% in
2075 and lowest ROE is 9.13% in 2076. In 2073, it has increased and came to be), and in 2074 it
is decreased (-28.73%). In 2075 it is increased and came to be (-36.18%). The trend is
fluctuating. And in 2076 it is decreased (-62.94%).
The above calculation shows that ROE is in fluctuating trend. ROE is increased in 2073 by
11.12%. And in 2074 decreases due to the lower net profit. In 2075, ROE is increasing due to the
increment in net profit. In 2076, ROE is decreases due to lower net interest income This shows
the lower performance of Rastriya Banijya Bank.
 Due to decrease in net profit

 Due to high paid up capital
 Due to lack of financial leverage
Column1
80
60
40
20
0 2072 2073 2074 2075 2076
Column1
2
4.1.5. Earning Per Share
The following table contains the value of EPS of 5 years.
Table 5.: Earning Per Share

2072 Rs. 33.11 -
2073 Rs.26.43 - 6.68
2074 Rs. 34.40 7.97
2075 Rs.59.24 24.84
2076 Rs.12.5 -46.74
Table 4.1.5 shows the Earning Per Share of Rastriya Banijya Bank. In 2073, EPS decreased and
came to be (-6.68%). And in 2074 and 2075 , it is increased (+7.97%) and(+24.84). In 2076, it is
decreased and came to be (-46.74%).
The above table shows the fluctuating trend with increasing and decreasing values. In 2073
decreases due to the decrement in net income. In 2074 and 2075, EPS is increasing. In 2076,
decreases by huge percent which is 46.74%This shows the lower performance of Rastriya
Banijya Bank.
The reasons behind this lower performance are given below.
 Due to perceived risk of stock.

 Due to decrement in dividend per share.
 Due to increment and decrement in a net income.
2
Series 1
60
50
40
30
20
10
0
2072 2073 2074 2075 2076
Series 1
4.2 MAJOR FINDINGS
After analyzing and interpreting the relevant data, the following findings are derived.
• The Net Profit Margin of RBB of recent 5 years is in fluctuating trend.
• The Gross Profit Margin of RBB of recent 5 years is in increasing trend.
• The ROA of RBB of recent 5 years is in fluctuating trend.
• The ROE of RBB of recent 5 years also is in fluctuating trend.
• The EPR of RBB of recent 5 years is in increasing trend.
• The P/E Ratio of RBB recent 5 years is in decreasing trend.
• The overall results show average performance of RBB. So RBB should maximize
shareholder’s equity and should utilize bank’s assets and deposits in effective and
efficient way.
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Chapter 5
SUMMARY AND CONCLUSION
5.1 Summary
This project work is prepared on the topic, “A Study on Profitability Condition of Rastriya
Banijya Bank”. The main objective of the study is to find out the profitability condition of RBB,
New Baneshwor. This reports mainly contains five phases namely introduction, literature review,
research methodology and data presentation, analysis and interpretation.
This report starts with the introduction of the bank. This study presents the details and depth
information about the Rastriya Banijya Bank. RBB was established on January 23, 1966 under
the RBB Act, as an ‘A’ class commercial bank of the country, growing up as an indispensable
component of the Nepalese economy. The study brings the banks objectives and its vision. This
report also comprises objective and importance of the study.
After that the study talks about the literature review done for this report. It includes the
reviewing of previous work relating to the topic. This report includes the four related studies
with their objectives and findings to supports this study.
Next, the study presents the concept of research methodology. It talks about the methodology
that is used for this report and it talks about research design, sources of data, sampling technique,
data processing tools and technique etc. thus, this study use the descriptive research design and
based on secondary data. Judgmental sampling technique is used for this project work and
various financial and mathematical tools are used for data analysis.
Lastly, the fourth chapter includes the data presentation, analysis and findings of the study. In
this chapter tables are used to present the calculated data. The various ratios like; Return on
Equity, Return on Assets, Net Profit Margin, Gross Profit Margin, Earning Per Share and P/E
Ratio have been computed and analyzed to determine the financial condition of Rastriya
Banijya Bank, New Baneshwor.
3
5.2 Conclusion
After conducting the study on Profitability Condition of Rastriya Banijya Bank from
the FY 2070/2071 to 2074/2075 a conclusion is derived that RBB has been performing
satisfactorily till date with respect to most of the profitability indicators. The detailed
conclusions of every ratio are as follows.
• The net profit margin of RBB of recent 5 years is inconsistent due to difference in
borrowing and lending rate i.e. spread rate and fluctuating in current deposit, fixed
deposit and saving deposits. This shows the average performance of RBB. So, RBB has
to increase total operating income and decrease interest expenses to improve the net
profit margin.
• The gross profit margin of RBB of recent 5 years is in fluctuating trend because RBB is
unable to maintain constancy in net interest income. This shows the average performance
of RBB. RBB has to increase net interest income and reduce interest expenses to improve
gross profit margin.
• The ROA of RBB of recent 5 years is in fluctuating trend due to inconstancy in RBB
performance, change in net income and bank’s assets. This shows the average
performance of RBB. So, RBB has to effectively and efficiently use bank’s assets and
increase net income to improve ROA.
• The ROE of RBB of recent 5 years is in declining trend. ROE is decreased in 2071 to
2074. Up to third quarter of 2075, ROE is still decreasing due to negative reserves and
funds and lower net profit. This shows the lower performance of RBB. So, RBB has to
efficiently use stockholders investment and increase net profit.
• The EPR of RBB of recent 5 years is in fluctuating trend. ERP is decreased in 2072-
2073. EPR is increasing in 2073-2075. Due to increase and decrease in net profit. And it
decreases in 2076.
• The P/E ratio if RBB of recent 5 year is in decreasing trend. P/E Ratio is decreased in
2072-2075 due to high borrowing and it increased in 2076.
3
BIBLIOGRAPHY
• Cardesco F, Gatner E.M. (1971). Research and Report Writing. New York: Barnes and
Noble.
• Arlene Fink (2005).Business Research : The Bronx, New York, United States
• P.Haywood and E.C Wragg (1996). Research Design. New York: Black
Day Publishing.
• S. Rajasekar. (2006). School of Physics, Bharathidasan University, Tiruchirapalli - 620

024, Tamilnadu, India.
Unpublished Reports
• Poshan Raj Basnest (2007) “Profitability Analysis of Nabil Bank”
• Pradipta Sharma (2014) “Profitability Analysis of Nepal Credit and

Commercial Bank”
• Yadav B.K (2013) “Position of Profitability in Kumari Bank Limited”
Websites
• http://en.wikipedia.org
• http://google.com
Annual Report
• Annual Report (2071-2072), Rastriya Banijya Bank
• Annual Report (2076), Rastriya Banijya Bank
3
Appendix-1
3
Rastriya Banijya Bank Limited
Balance Sheet (2072)
S.N Capital & Liabilities Current year Previous year

NPR NPR
1 Share Capital 8588972300.00 8588972300.00
2 Reserves and Funds 1913207511.66 (1913207511.66)
3 Debentures & Bonds - -
4 Borrowings 1305345000.00 1305345000.00
5 Deposits Accounts 124221662307.70 124221662307.70
6 Bills Payable 14559940.68 14559940.68
7 Proposed Cash Dividend - -
8 Income Tax Liabilities - -
9 Other Liabilities 7343474493.31 11106678629.01
Total Capital & Liabilities 139560806530.03 122557920794.05
S.N Assets Current year Previous year
NPR NPR
1 Cash Balance 3830588195.24 3830588195.24
2 Balance with Nepal Rastra Bank 17990163566.70 17990163566.70
3 Balance with Banks/ Financial 623839122.72 623839122.72
Institutions
4 Money at Call and Short Notice 450000000.00 450000000.00
5 Investments 35310274930.62 35310274930.62
6 Loans, Advance and 72079280711.18 72079280711.18
Bills Purchased
7 Fixed Assets 524201241.11 524201241.11
8 Non Banking Assets - -
9 Other Assets 8752485762.46 8752458762.46
Total Assets 139460806530.03 139560806530.03
3
Profit and Loss Account (2072)
S.N Particulars Current Year NPR Previous Year NPR

1 Interest Income 6520239025.13 6104557252.54
2 Interest Expenses 1924982516.29 2223790949.11
3 Net Interest Income 4595256508.84 3880766303.43
4 Commission and Discount 455982378.73 410560330.34
5 Other Operating Incomes 485733552.79 371048896.33
6 Exchange Fluctuation 42349340.25 33746707.86
Income (Trading
Gain)
7 Total Operating income 5579321780.61 469612223796
8 Staff expenses 2459318052.66 2266154795.58
9 Other Operating Expenses 856863832.84 731851046.61
10 Exchange Fluctuation - -
Loss
11 Operating Profit Before 2263139895.11 1698116395.77
Provision for Possible
Loss
12 Provision for Possible 790770168.02 819912752.81
losses
13 Operating Profit 1472369727.09 878203642.93
14 Non-Operating Income 2875181095.67 157489581.58

Losses written Back
16 Profit from Regular 5004949744.82 1873204384.47
Operations
17 Profit/Loss from Extra- 803841698.59 155703100.96
Ordinary Activities
18 Profit after 5808791443.41 2028907485.43
considering all
activities
19 Provision for Staff Bonus 430280874.07 150289443.37
20 Provision for Income Tax 734642574.07 41922527.52
21 Current Year’s 728953572.74 -
Tax Provision
22 Prior Period Taxation - (27500000.00)
23 Deferred Tax (Income) 5689001.33 69422527.52
24 Net Profit/(Loss) 4643868021.68 1836695514.54
3

NPR NPR
1 Share Capital 8588972300.00 8588972300.00
2 Reserves and Funds 17277151.02 1913207511.66
4 Borrowings 943800000.00 1305345000.00
6 Bills Payable 152859249.88 14559940.68
Total Capital & 166432086120.34 139560806530.03
Liabilities
NPR NPR
1 Cash Balance 4488211690.30 3830588195.24
2 Balance with Nepal 20720083213.21 17990163566.70
Rastra Bank
3 Balance with Banks/ 1235059785.75 623839122.72
Financial Institutions
4 Money at Call and Short 2296000000.00 450000000.00
Notice
5 Investments 43768304627.53 35310274930.62
6 Loans, Advance 81778174696.65 72079280711.18
and Bills Purchased
7 Fixed Assets 512062882.64 524201241.11
9 Other Assets 11634189224.23 8752485762.46
Total Assets 166432086120.34 139460806530.03
3
Profit And Loss Account (2073)

1 Interest Income 7422643106.22 6520239025.13
6 Exchange Fluctuation 13143090.14 42349340.25
Income (Trading Gain)
7 Total Operating income 6581108607.22 5579321780.61
8 Staff expenses 2887161407.52 2459318052.66
10 Exchange Fluctuation Loss - -
11 Operating Profit Before 2779323100.58 2263139895.11
Loss
losses
14 Non-Operating 17401579.20 2875181095.67
Income/Expenses
Losses written Back
16 Profit from Regular 2854750079.66 5004949744.82
Operations
17 Profit/Loss from Extra- 397686727.80 803841698.59
Ordinary Activities
18 Profit after considering 3252436807.46 5808791443.41
all activities
21 Current Year’s Tax 647429123.34 728953572.74
Provision
22 Prior Period Taxation (46906.05) -
23 Deferred Tax 8845758.81 5689001.33
(Income)/Expenses
24 Net Profit/(Loss) 2355287583.36 4643868021.68
3

NPR NPR
1 Share Capital 8588972000 8588972300.00
2 Reserves and Funds 3113824000 17277151.02
4 Borrowings 592470000 943800000.00
5 Deposits Accounts 153575987000 146207634274.46
6 Bills Payable 153298806000 152859249.88
7 Proposed Cash Dividend 277181000 -
9 Other Liabilities 13011069000 10521543144.98
Total Capital & 178882322000 166432086120.34
Liabilities
NPR NPR
1 Cash Balance 20545994000 4488211690.30
2 Balance with Nepal 80000000 20720083213.21
Rastra Bank
3 Balance with Banks/ 38281035000 1235059785.75
4 Money at Call and Short 106431351000 2296000000.00
Notice
5 Investments 5196656000 43768304627.53
6 Loans, Advance and 311001000 81778174696.65
Bills Purchased
7 Fixed Assets 1621669000 512062882.64
8 Non Banking Assets 77881000 -
9 Other Assets 11847804000 11634189224.23
Total Asset 178857407000 166432086120.34
3
Profit and Loss Account (2074)

1 Interest Income 8888393000 7422643106.22
2 Interest Expenses 1909230000 1872716005.76
3 Net Interest Income 6979163000 5549927100.46
4 Commission and Discount 515495000 465415106.50
5 Other Operating Incomes 632258000 552623310.12
6 Exchange Fluctuation 56719000 13143090.14
Income (Trading
Gain)
7 Total Operating income 8183635000 6581108607.22
8 Staff expenses 3110612000 2887161407.52
9 Other Operating Expenses 1022050000 914624099.12
11 Operating Profit Before 4050973000 2779323100.58
Loss
12 Provision for Possible losses 1387990000 1044874272.17
13 Operating Profit 2662983000 1734448828.41
14 Non-Operating 11239000 17401579.20
Income/Expenses
15 Provision for Possible 1213121000 1102899672.05
Losses written Back
16 Profit from Regular 3887343000 2854750079.66
Operations
17 Profit/Loss from Extra- 231824000 397686727.80
Ordinary Activities
18 Profit after considering all 4119167000 3252436807.46
activities
19 Provision for Staff Bonus 305123000 240921245.00
20 Provision for Income Tax 731384000 656227979.10
21 Current Year’s - 647429123.34
Tax Provision
22 Prior Period Taxation - (46906.05)
23 Deferred Tax - 8845758.81
(Income)/Expenses
24 Net Profit/(Loss) 3082660000 2355287583.36
3

NPR NPR
1 Share Capital 8588972000 20545994000
2 Reserves and Funds 4977591000 80000000
3 Debentures & Bonds - 38281035000
4 Borrowings 274341000 106431351000
5 Deposits Accounts 153223917000 5196656000
6 Bills Payable 151541973000 311001000
7 Proposed Cash Dividend 1681941000 1621669000
8 Income Tax Liabilities - 77881000
9 Other Liabilities 10816365000 11847804000
Total Capital & 177881186000 178857407000
Liabilities

NPR NPR
1 Cash Balance 16871153000 20545994000
2 Balance with Nepal 1880114000 80000000
Rastra Bank
3 Balance with Banks/ 33796394000 38281035000
4 Money at Call and Short 112807965000 106431351000
Notice
5 Investments 3627996000 5196656000
6 Loans, Advance and 433171000 311001000
Bills Purchased
7 Fixed Assets 1852231000 1621669000
8 Non Banking Assets 76901000 77881000
9 Other Assets 10596428000 11847804000
Total Assets 177881186000 178857407000
4
Profit And Loss Account
2075
1 Interest Income 8256812000 8888393000
2 Interest Expenses 2066581000 1909230000
3 Net Interest Income 6190231000 6979163000
4 Commission and Discount 367827000 515495000
5 Other Operating Incomes 429363000 632258000
6 Exchange Fluctuation 23621000 56719000
Income (Trading
Gain)
7 Total Operating income 7011042000 8183635000
8 Staff expenses 1925818000 3110612000
9 Other Operating Expenses 700737000 1022050000
11 Operating Profit Before 4384487000 4050973000
Loss
12 Provision for Possible losses 1244301000 1387990000
13 Operating Profit 3140186000 2662983000
14 Non-Operating 2187000 11239000
Income/Expenses
15 Provision for Possible 1063134000 1213121000
Losses written Back
16 Profit from Regular 4205507000 3887343000
Operations
17 Profit/Loss from Extra- 146904000 231824000
Ordinary Activities
18 Profit after considering all 4352411000 4119167000
activities
19 Provision for Staff Bonus 322401000 305123000
20 Provision for Income Tax 945000000 731384000
21 Current Year’s - -
Tax Provision
22 Prior Period Taxation - -
23 Deferred Tax - -
(Income)/Expenses
24 Net Profit/(Loss) 3085010000 3082660000
4
Balance Sheet
2076
NPR NPR
1 Share Capital 8588972300.00 8588972300.00
2 Reserves and Funds (1913207511.66) (7316484156.24)
5 Borrowings 1305345000.00 2167175921.35
7 Bills Payable 14559940.68 17254293.95
Total Capital & 122557920794.05 101523505998.42
Liabilities

NPR NPR
1 Cash Balance 3830588195.24 2400662480.59
2 Balance with Nepal 17990163566.70 11973729508.00
Rastra Bank
3 Balance with Banks/ 623839122.72 68442363381
4 Money at Call and Short 450000000.00 480000000.00
Notice
5 Investments 35310274930.62 29672248531.65
6 Loans, Advance and 72079280711.18 45599151212.40
Bills Purchased
7 Fixed Assets 524201241.11 489108991.72
9 Other Assets 8752458762.46 10224181640.25
Total Assets 139560806530.03 101523505998.42
4
Profit And Loss Account (2076)

S.N Particulars Current Year NPR Previous Year
NPR
1 Interest Incomes 6104557252.54 5748968390.27
6 Exchange Fluctuation Income (Trading 33746707.86 -
Gain)
7 Total Operating income 469612223796 4038515752.16
8 Staff expenses 2266154795.58 2363303344.87
10 Exchange Fluctuation Loss - 63908033.93
11 Operating Profit Before Provision 1698116395.77 901902081.38
for Possible Loss
12 Provision for Possible losses 819912752.81 349732171.89
14 Non-Operating Income/Expenses 157489581.58 4483388.51
15 Provision for Possible Losses written 837511159.93 805922760.24
Back
16 Profit from Regular Operations 1873204384.47 1362576058.26
17 Profit/Loss from Extra-Ordinary 155703100.96 111902139.86
Activities
18 Profit after considering all activities 2028907485.43 1474478198.12
21 Current Year’s Tax Provision - -
22 Prior Period Taxation (27500000.00) -
23 Deferred Tax (Income)/Expenses 69422527.52 55143610.33
24 Net Profit/(Loss) 1127537144 1127537144
4
Appendix-2
4
CALCULATION OF PROFITABILITY RATIOS
Working for (2072)
1. Net profit Margin= Net Profit/Sales Revenue*100%
Here,
Net Profit= Rs. 46,438,680,21,68
Sales Revenue=Rs.55,793,217,80.61
Now,
Net Profit Margin=46,438,680,21,68/55,793,217,80.61*100
=83.23%
Hence, The Net Profit Margin is 83.23%
2. Gross Profit Margin= Gross Profit /Sales Revenue*100
Here,
Gross Profit= Rs. 45,952,565,08.84
Sales Revenue= Rs. 55,793,217,80.61
Now,
Gross Profit Margin= 45,952,565,08.84/55,793,217,80.61*100
=82.36%
Hence, The Gross Profit Margin is 82.36%
3. Return On Assets= Net Income/Total Assets*100
Here,
Net Income = Rs. 45,952,565,08.84
4
Total Assets= Rs. 13,946,080,650,0.3
Now,
Return On Assets= Rs. 45,952,565,08.84 /13,946,080,650,0.3*100
=3.30%
Hence, The Return On Assets is 3.30%
4. Return On Equity= Net Income/Total Equity*100
Here,
Net Income=Rs. 45,952,565,08.84
Total Equity=Rs. 85,889,723,00
Now,
Return On Equity =Rs.45,952,565,08.84/ 85,889,723,00*100
=53.50%
Hence, The Return On Equity is 53.50%
5. Earning per Share= Net Income /No. of outstanding shares
Here,
Here,
Earning Per Share=Rs.33.11 (Given in financial Report)
Hence, The earning per share is Rs.33.11
6. P/E Ratio=Market Price Per Share/EPS
Here,
Market Price Per Share=Rs. 10,259
Earning Per Share=Rs.33.11
Now,
P\E Ratio=Rs. 10,259/33.11
4
=310 Times
Hence, The P\E ratio is 310 Times.
Working for (2073)

Here,
Net Profit= Rs. 23,552,875,83.36
Sales Revenue= Rs. 65,811,086,05.22
Now,
Net Profit Margin= Rs. 23,552,875,83.36 /65,811,086,05.22 *100%
=35.76 %
Hence, The Net Profit Margin is 35.79 %
Here,
Gross Profit= Rs. 55,499,271,00
Sales Revenue= Rs.
65,811,086,05.22 Now,
Gross Profit Margin= Rs. 55,499,271,00/Rs. 65,811,086,05.22 *100
=84.33%
3. Return On Assets= Net Income/Total Assets*100%
Here,
Net Income = Rs. 55,499,271,00
Total Assets= Rs.16,643,208,6120.34
Now,
4
Return On Assets= Rs. 55,499,271,00 /Rs. 16,643,208,6120.34*100%
=1.415%
Here,
Net Income=Rs. 55,499,271,00.46
Total Equity=Rs.85,880,723,00
Now,
Return On Equity =Rs. 55,499,271,00.46 /85,880,723,00 *100
=64.62%
5. Earning per Share= Net Income Preferred Dividends/Weighted Average

Shares Outstanding
Here,
Hence, The earning per share is Rs.26.43
6. P\E Ratio=Market Price Per Share\EPS
Here,
Market Price Per Share=Rs.6360
Now,
P\E Ratio=Rs.6360\Rs.26.43
=240.63 Times
Hence, The P\E ratio is 240.63 Times.
Working for (2074)
4
Here,
Net Profit= Rs. 3,082,660,000
Sales Revenue=Rs. 8,183,635,000
Now,
Net Profit Margin= Rs.3,082,660,000/8,183,635,000 *100
=37.67%
Here,
Sales Revenue= Rs. 8,183,635,000
Now,
Gross Profit Margin= Rs. 6,979,163,000/ Rs8,183,635,000 *100
=85.28%
Hence, The Gross Profit Margin is 85.28%.
Here,
Net Income = Rs. 3,082,660,000
Total Assets= Rs. 17,885,7407,000
Now,
Return On Assets= Rs. 3,082,660,000 /17,885,7407,000 *100
=1.72%
4
Here,
Net Income=Rs. 3,082,660,000
Now,
Return On Equity =Rs. 3,082,660,000/8,588,972,0006*100
=35.89%
Hence, The Return On Equity is 35.89%.
5. Earning per Share= Net Income Preferred Dividends/Weighted Average Shares

Outstanding
Here,
Earning Per Share=Rs. 34.40 (Given in financial Report)
Hence, The earning per share is Rs. 34.40
Here,
Market Price Per Share=Rs. 2187
Earning Per Share=Rs. 34.40
Now,
P\E Ratio=Rs 2187/Rs. 34.40
=63.57 Times
Working for (2075)

Here,
5
Net Profit= Rs. 3,085,010,000
Sales Revenue=Rs. 7,011,042,000
Now,
Net Profit Margin= Rs. 3,085,010,000 /Rs. 7,011,042,000 *100%
=44%
Hence, The Net Profit Margin is 44%.
Here,
Now,
Gross Profit Margin= Rs. 6,190,231,000 / Rs. 7,011,042,000 *100
=88.29%
Here,
Net Income = Rs. 6,190,231,000
Total Assets= Rs. 177,881,186,000
Now,
Return On Assets= Rs. 6,190,231,000/177,881,186,000*100%
=3.47%
Here,
5
Net Income=Rs. 6,190,231,000
Now,
Return On Equity =Rs. 6,190,231,000 /Rs. 8,588,972,000*100%
=72.07%

Shares Outstanding
Here,
Earning Per Share=Rs. 59.24 (Given in financial Report)
Here,
Market Price Per Share=Rs. 261.44
Now,
P\E Ratio=Rs. 216.44/Rs. 59.24
=3.65 Times.
Working for (2076)

Here,
Net Profit= Rs. 1,127,537,144
Now,
5
Net Profit Margin= Rs. 1,127,537,144 /Rs. 2,640,122,843*100%
=42.70%
Here,
Now,
Gross Profit Margin= Rs. 2,267,890,927 /Rs. 2,640,122,843 *100%
=85.90%
Hence, The Gross Profit Margin is 85.90%.
Here,
Net Income = Rs. 2,267,890,927
Total Assets= Rs. 232,783,362,611
Now,
Return On Assets= Rs. 2,267,890,927/Rs. 232,783,362,611 *100%
=0.9742%
Hence, The Return On Assets is 0.9742%.
Here,
Net Income=Rs. 2,267,890,927
Total Equity=
24,833,679,457 Now,
5
Return On Equity =Rs. 2,267,890,927 /Rs. 24,833,679,457*100
=9.13%

Shares Outstanding
Here,
Here,
Market Price Per Share=Rs. 275.73
Earning Per Share=Rs. 12.5
Now,
P\E Ratio=Rs. 275.73/Rs.25
=11.02 Times.

A Summer Project On Profitability Analysis On Rastriya Banijya Bank

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A STUDY ON

PROFITABILITY CONDITION OF RASTRIYA BANIJYA

Submitted By: Topha Kandel

Symbol No: 17450294

P.U. Registration No: 2017-2-45-0060

Level: BBA-BI, 5th semester

A SUMMER PROJECT REPORT

Submitted to: Apollo International College

Lakhechaur Marg, Baneshwor,Kathmandu

In Partial Fulfillment of the requirement for the degree of

Bachelor of Business Administration Banking and Insurance (B.B.A-BI)

March 19, 2020

.Finally, I wish to acknowledge my gratitude teachers and friends of Apollo International

BBA-BI 5th semester

Apollo International College

A.D. - Anno Domino

ATM – Automated Teller

Machine CEO- Chief Executive

Officer Ltd. – Limited

RBB- Rastriya Banijya Bank

BBA- Bachelor of Business Administration

NRB – Nepal Rastra Bank

F/Y- Fiscal Year

PU- Pokhara University

CHAPTER-1: INTRODUCTION 8-11

• Background of the Study 8

• Objectives of the Study 9

• Scope of the Study 9

• Limitation of the Study 10

• Importance of the Study 10

• Organization of the Study 11

CHAPTER-2: LITERATURE REVIEW 12-15

2.1 Meaning of Literature Review 12

2.2 Objectives of Literature Review 12

2.3 Review of Related Studies 13

CHAPTER-3: RESEARCH METHODOLOGY 16-19

3.2 Research Design 16

3.3 Nature and Source of Data 16

3.4 Decision of Sample 18

3.5 Data Collection Procedure 19

3.6 Data Processing 19

3.7 Data Analysis Tools 19

3.8 Data Interpretation Techniques 19

CHAPTER-4: DATA PRESENTATION, ANALYSIS 20-27

4.1 Data Analysis 21

4.1.1 Net Profit margin 21

4.1.2 Gross Profit Margin 23

4.1.3 Return On Assets (ROA) 25

4.1.4 Return on Equity (ROE) 26

4.1.5 Earning Per Share 27

4.2 Major Findings 27

CHAPTER-5: SUMMARY AND CONCLUSION 28-29

4.1.1 Return on Equity 14

4.1.2 Return on Assets 15

4.1.3 Net Profit Margin 16

4.1.4 Gross Profit Margin 17

4.1.5 Earning Per Share 18

1.2 Background of the Study.

A bank is an institution that provides services, such as accepting deposits, giving

Rastriya Banijya Bank is one of the pioneering banks in the Nepalese

Services currently offered by RBB:

o Hire purchase loan

1.2 Objectives of the Study