Chapter 1 : Introduction

Background of the study

It is very hard to collect the correct information of the origin of bank. The word "Bank" has
derived from the Italian word "Banco" which means accumulation of money of stock. It is
believed that its origin is from the French word "Banque" which means "bench" for keeping,
lending and exchanging of money or coin in the market place by money lenders or money
changers. It is believed that the ancestors of modern banking system were merchants,
goldsmiths and moneylenders. Modern banking sowed its seed in the medieval Italy despite
strong Christian prohibitions against charging interest.

The bank had started in Italy in 12th century as a public bank. The Bank of Venice that was
established in 1158 A.D. was the first bank in the history of banking. Following its establishment
various banks such as Bank of Barcelona, which was established in 1401 A.D was the second
bank of the world. Similarly, Bank of Geneva (1407), Bank of Amsterdam (1609), Bank of
Hindustan (1770) were established. The first central bank was the "Bank of England" which was
established in 1844 AD.

Bank is a financial institution, which is engaged in monitory transaction. Bank has always been
the most importance and largest financial intermediates. Banks collect the scattered money
from public providing those interests and services. This collection becomes the capital for the
bank to invest. “Banking means the accepting of money for the view of lending or investment of
deposit from the public repayable on demand or otherwise and withdraw able by cheque, draft
or otherwise”, is according to Banking Regulation Act 1949 of India. World Bank says “Banks or
a financial institution that accepts funds in the forms of deposit repayable on demand or at
short notice."

1.1.1 History of Bank in Nepal

In the context of Nepal, like as in the other countries the goldsmith and landlords were the ancient banker.
The Nepalese people were highly exploited by 'Sahu Mahajan' by charging higher interest rate, compound
interest rate and even by manipulating the principal amount. The introducing of 'Tejarath Adda' during the
tenure of the Prime Minister Ranoddip Sing (1993 B.S.) was the first step towards the institutional
development of banking in Nepal. The first commercial bank 'Nepal Bank Limited' was established on 30th
Kartik 1994 B.S.and started to perform proper banking activities. With the realization of central bank to
develop monetary policy as well as to have proper control over commercial banks and banking sectors Nepal

1
Rastra Bank was established on 14th Baishak 2017B.S. under Nepal Rastra Bank Act 2015 B.S. Likewise,
Rastra Banijya Bank under the full ownership of government was established on Magh 2022 as per 'Rastra
Banijya Bank Act 2015 B.S.'. The growths of the banks accelerated only after the adoption of liberal
eeconomic policy by Nepalese Government .This has attracted many new investors and encourage opening
many new modern banks with joint venture of foreign banks. Nepal Arab Bank was established on 29th
Ashad 2041 B.S. as the first modern bank with the joint venture of Dubai Bank Ltd. U.A.E. subsequently
following its established Nepal Indo Suez Bank France, Nepal Grinlands Bank England on 16th Marg 2043B.S.
with its joint venture of Grinlands Bank England, Himalayan Bank Ltd on 5th Marg 2049B.S. with the joint
venture of Habib Bank of Pakistan, Nepal SBI Bank Ltd. in28th Ashad 2050 B.S.with joint venture of State
Bank of India Nepal Bangladesh Bank Ltd. on 28th Jestha, 2050B.s. with the joint venture of International
Finance Investment and Commercial Bank, Everest Bank Ltd. on 1st Kartik 2051B.S. with joint venture of
Punjab National Bank Ltd of Kathmandu on 28th Falgun 2051B.S. with joint venture of the Siam Commercial
Bank, Thailand.

Since, the financial sector in Nepal is small, it is growing fast. At present banking system comprises of NRB,
16 commercial bank and many financial companies, contractual, limited banking non- government
organization conduction saving institution and activities transaction. The umbrella act set out regulation
for licensing, supervision and cancellation of commercial bank. Currently, the growths of commercial
banks are shown below:-

1.1.2 Lists of commercial banks in Nepal

1. Nepal Bank Limited

2. Rastriya Banijya Bank limited

3. Agriculture Development Bank Limited

4. Everest Bank Limited

5. Nepal Investment Bank Limited

6. Siddartha Bank Limited

7.Standarded chartered Bank Nepal Limited

8. Himalayan Bank Limited

9. Nepal SBI Bank

10. NIC Asia Bank Limited

2
11. Bank of Kathmandu ltd.

12. Nepal Credit and commerce Bank limited

13. Kumari Bank limited

14. Laxmi Bank limited

15. Global IME Bank limited

16. Citizens Bank International Limited

17. Prime Commercial Bank Limited

18. Nabil Bank Limited

19. NMB Bank Nepal Limited

20. Machhapuchhre Bank limited

21. Mega Bank Limited

24. Civil Bank Limited

23. Century Bank limited

26. Sanima Bank limited

25. Pravu Bank Limited

26. Sunrise Bank Limited

( source: www.nrb.org.np)

1.2 Introduction of Everest Bank

A commercial Bank is a financial institution which collects saving from many persons and
institutions and provides credit or loan facility to different industrial and commercial business.
Commercial banking business consists of challenging cash into bank deposit and bank deposit
into cash, transferring bank deposit from one person or institution to other, giving bank deposit
in exchange for cheques, bills of exchange, government securities etc.

Nepal Bank Limited established in 1994 BS in the first commercial bank in Nepal. Commercial
bank performs various functions. Among them, accepting various types of deposit is the main
function of commercial bank. Commercial banks are directly related with the people and
institution. The commercial bank is an important bank. Its function is very attractive for people.

3
Although these banks are truly inspired with the objective of gaining profit, these commercial
banks are also established to accelerate common people's economic welfare and facility to
make available loan to the agriculture, industry, and commerce and to provide the banking
services to the public and the state.

People's economic welfare and facility to make available loan to the agriculture, industry, and
commerce and to provide the banking services to the public and the state are some of the
function perform by commercial bank in Nepal. Among many functions of commercial bank
acceptance of deposit is one of it. The bank allows three type of accounts to accept the deposit
for their customer. They are: current, saving and fixed account. People can collect their money
in one of the three as their need. But interest is given only to the saving and fixed account. The
commercial bank performs the important function of accepting all sorts of deposits. It earns
profit by investing that money in another place.

Another function of commercial bank is to provide loan. A commercial bank provide loan to a
person, company and institution etc. A bank can earn a lot of profit from it. A bank is capable of
gain benefit in its banking development by receiving the interest as per law and its internal
policies. It provide the loan by accepting the security of debtor. A bank flow the loan against a
third person guarantee or with the pledge of the third person. A bank provides the loan on the
basis of agreement or deed of loan. It provides loan on basis of the following deed securities:

● With the pledge of goods, and pledge of gold and silver.

● With the security of immovable property
● With the security of other similar goods.

Everest Bank Limited (EBL) commenced its operation on 1994 . It has been one of the
leading banks of the country and has been catering its service to various segments of the
society. With clients from all walks of life, the Bank has helped the nation to develop
corporately, agriculturally and industrially. Everest is the pioneer in introducing maims
innovative products and marketing concept in banking sector of Nepal with 124branches,
160 ATM Counters, 32 Revenue Collection Counters and 3 Extension Counters
across the country making it a very efficient and accessible bank for its customers,
anytime, anywhere.

Everest, as a pioneer in introducing many innovative products and marketing concepts in the
domestic banking sector, represents a milestone in the banking history of Nepal as it started an
era of modern banking with customer satisfaction measured as a focal objective while doing
business. Operations of the bank including day-to-day operations and risk management are
managed by highly qualified and experienced management team. Bank is fully equipped with

4
modern technology which includes ATMs, credit cards, state-of-art, world-renowned software
from Infosys Technologies System, Banglore, India, Internet banking system and Telebanking
system. Everest provides a full range of commercial banking services through its outlets spread
across the nation and reputed correspondent banks across the globe. Moreover, Everest has a
good name in the market for its highly personalized services to the customers. At the time of
commencement it had Rs 100 million as Authorized Capital.

Objective of the study

The main objective of the study is to fulfill the partial requirement of T.U to complete BBS
project. The objective of this fieldwork is to analyses deposits collected in EVEREST. The study
intends to present a brief and clear picture of deposit and its utilization. The objective of the
study includes.

● To find out deposit trend of EVEREST bank.

● To analyses the cost of deposit
● To analyses whether the deposits are being properly utilized or not

Rationale

Deposit collection is the major function of all commercial banks, which help to carry out almost
all transaction of the bank. Mostly among the various deposit features provided by commercial
banks, fixed and saving deposit are considered to be more important. In the case of term
deposit the banker pay longer the period higher the interest. The rational of the study are:

● To find out the deposit position of Everest Bank

● To find out the strength and weakness of Everest Bank
● To find out the marketing style and public relation of the bank.

Review

Ahuja (1998), “Financial Performance analysis is a study or relationship among the various
financial factor in business a disclosed by a single set of statement and a study of the trend of
these fact as shown in a series of statements. By establishing a strategic relationship between

5
the item of a balance sheet and income statements and other operative data, the financial
analysis unveils the meaning and signification of such items."

Pandey (1997) has defined as "The finance statement provides a summarized view of the
financial operation of the firm. Therefore, something can be learnt about a firm and careful
examination of the financial statements as invaluable documents or performance reports. Thus,
the analysis of financial statement is an important aid to financial analysis or ratio analysis
which is a main tool of financial statement analysis.

According to Metcalf and Tatar (1996), “Financial Performance analysis is a process of

evaluating the relationship between components parts of a financial statement to obtain a
better understanding of a firm's position and performance." According to Commercial Bank Act,
the saving account means an account of amounts deposited in a bank for savings purposes.

Saving Account are generally opened for the savings of customers (individuals, nonprofit
organization, charitable trusts, clubs, associations and cooperative) who want to save for
meeting future needs, Savings accounts is suitable for the customers who do not want to
withdraw frequently or who do not want to keep certain amount for fixed long period.

Khan and Jain have defined that (1990) "The ratio analysis is defined as the systematic use of
ratio to interpret the financial performance so that the strength and weakness of firm as well as
its historical performance and current financial condition can be determined."

In the word of Horne (1994) "Financial ratio can be derived from the balance sheet and the
income statement. They must be analyzed on a comparative basis. Ratio may also be judged in
comparison with those of similar firms in the same line of business and when appropriate, with
an industry average and we can look to future progress in this regard."

A comparative study of financial performance is a basic process, which provides information on

profitability, liquidity position, earning capacity, efficiency in operation, sources and use of
capital, financial achievement and status of the companies. This information will help to
determine the extent of efficiency and effectiveness of the company in respect of deploying
financial resources in the profitable manner.

Brigham and Houston (2004) views that financial profitability lies in a firm's ability to generate
revenues in excess of its costs: for either long or short term. In the long run, a firm should be
able to maintain the value of invested capital and able to yield a profit, which exceed the
opportunity cost of cost of capital meaning that the yield generated by the firm should exceed
the opportunity cost of capital.

1.6 Research Method

6
The research methodology is the process of arriving to the solution of the problems through
planned and systematic dealing with the collection, analysis and interpretation of facts and
figures. As the research entirely considers about the about “Deposit Analysis of EVEREST Bank”
The main purpose of this study is to show deposits and its utilization in EVEREST with its
financial positions, collection and uses of funds, its prospects and its position in context of
Nepal as well as to recommended suggestions for its improvement. Those research
methodologies have been used which proves helpful to deposit analysis. For the purpose of
achieving the objective, the following methodology is used. The data has been collected by
acquiring various kinds or reposts, bulletins and journals from the organization. Similarly data
has been acquired from NRB also. The study report is based mostly on secondary information of
EVEREST. In addition to this, reference has been made in library consult, class lectures, Related
books of banking, financial management and accounting during the preparation of this study.

1.6.1 Population and sample

Among 26 commercial banks of the country, Everest Bank Ltd has been chosen and their
performances have been analyzed. Due to Lack of Penal access study mainly depends on the
balance sheet prepared by Everest Bank Ltd, which is the secondary source. Everest Bank Ltd
has been selected for the present study. Financial statement of this bank for the last five years
has been taken as the sample for this purpose.

1.6.2 Type of Data

For the preparation of this report different kinds of report and websites are followed. In this
report, all collected data is secondary in nature. Almost all the data has been collected form
published annual reports, brochures etc. Mostly all the data are collected from the concerned
bank. In this study, the main source of data is secondary which are collected from pre-published
data sources. The financial data from the published documents and audited financial
statements were manually extracted into the computer files of Microsoft Excel program which
acted as master database file. The data was refined further into spreadsheets to carryout
financial ratio calculation and graphical illustration through mathematical functions and chart
program of the Excel program.

1.6.3 Data Processing Technique

The data collected from the above stated sources has been classified tabulated and interpreted
for easier study. The data collected are classified, tabulated and arranged in manner to make it
easily understandable with the use of tables in chronological order. After classification the data
is tabulated.

7
1.6.4 Techniques of Analysis
Financial ratios are the major tools used for the descriptive analysis of the study. In addition to
the financial tools, simple statistical tools are also used. Total deposit, saving deposit to total
deposit, fixed deposit to total deposit, current deposit to total deposit, lending to total deposit,
expenses to total deposit, interest bearing deposit to total deposit, interest non-bearing deposit
to total deposit etc, tools are used to analyses the data in this study.

1.7 Limitations of the Study

The study does not present detailed analysis of deposit in EVEREST due to lack of time relevant
data and resources. This study is limited to the information that was available from the bank
and other sources.

● This study covers the data of five years only.

● Only Secondary data have been used.
● It has been prepared to partial fulfill of BBS, which can not cover all dimension of all the
subjects matter and resources.

CHAPTER II: RESULTS AND ANALYSIS

8
2.1 Data presentation and Analysis

Presentation of Data:
The main aim of this chapter is presentation and analyzing data according to research
methodology to attain the objective of this study. This chapter is basically concerned with
presentation and analysis of data and the effort had been made to analyze the Financial
statement of five years of the Everest Bank Ltd.
Table 1

Total deposit position of Everest Bank Ltd

Year fixed curren savin other call total Growt

t g short h%
deposi
t
2016/1 2446 2704 4972 439 4945 1550 -2
7 6
2017/1 2252 3034 5230 390 2541 1344 -13
8 8
2018/1 2310 2688 5994 326 2801 1411 5
9 9
2019/2 2079 2799 7026 342 2341 1458 3
0 7
2020/2 3449 2910 8771 365 3851 1934 33
1 7
(source: annual report Everest Bank limited)

9
 Saving deposit

Figure 1: Total deposit position of Everest Bank Ltd.

Table 1 and figure 1 shows the deposit mix of Everest Bank Ltd during the period of last five
years. During the last years the current, margin or other deposits have a fluctuating collection in
the deposit mix of EVEREST. Here, total deposit of EVEREST was Rs.15506 million in
2016/17 which is less than 2% of 2014.. In the year 2017 the deposit decreased by 13%. But in
the year 2018 the total deposit increased by 5% to Rs.14,119 million. In the year 2019 the
deposit increased by 3% which reached to Rs.14,587 million .In the year 2020, the deposit
increased by 33% which reached to Rs.19,347 million.

Table 2

Current deposit position of Everest Bank Ltd.

Year Current Deposit Growth(Rs) Growth %

2016/17 2704 -148 -5
2017/18 3034 331 11
2018/19 2688 -346 -13
2019/20 2799 111 4
2020/21 2911 112 4

10
 Interest Bearing deposit

Figure 2: Current Deposit position of Everest Bank Ltd.

Table 2 and figure 2 shows that the current deposit of EVEREST Bank Ltd. In 2016, there was
decrease in current deposit by 5% and the current deposit reached to Rs.2,704 million during
year. In the year 2017 current deposit was Rs. 3,034 million which is Rs. 331 million more than
that of year 2016. But in the year 2017 current deposit collection decreased by 13%
corresponding to Rs.346 million increased. In the year 2018 current deposit collection increased
by 4% corresponding to Rs.111 million increased. Now, in the recent year 2020, the current
deposit increased by 4% i.e.Rs.112 million and has reached to Rs.2,911 million.

Table 3

Saving deposit position of Everest Bank Ltd.

Year Saving deposit Growth RS. Growth%

2016/17 4972 55 18
2017/18 5230 257 5
2018/19 5994 765 13
2019/20 7026 1032 15
2020/21 8771 1745 25

11
 source: Annual Report of Everest bank Ltd

Interest on Deposit(A)
Total Deposit Rs.(B)

Figure 3: SAving deposit position of Everest Bank Ltd.

Here is the figure of saving deposit of EVEREST Bank Ltd. In year 2016 it was increased by 18%
and in the year 2017 it was increased by 5%. In the year 2017 saving deposit was Rs.5,230
million which is Rs.257 million higher than of year 2016. In the year 2018 it again increased by
13% and reached Rs. 5,994 million. In the year 2019 it again increases by 15% and reached
Rs.7,026 million. In the year 2020, it continues to increase and reaches to Rs.8,771 million
which the increased by 25% i.e. Rs. 1745 million.

From the above table, saving deposit trend is seemed to be increasing. Most of the people
deposit their fund in saving deposit account. So, EVEREST should attract people towards saving
deposit and manage its incremental trend.

Table 4

Fixed Deposit position of Everest Bank Ltd.

Year Fixed deposit Growth(RS) Growth(%)

2016/17 2446 -1273 -2
2017/18 2252 -195 -9
2018/19 2079 -231 -11
2019/20 2079 -231 -11
12
 2020/21 3449 1370 67
source: Annual Report, Everest Bank Ltd.

Ratio %

Figure 4: Fixed Deposit position of Everest Bank Ltd.

This above table 4 and figure 4 shows the fixed deposit of EVEREST Bank Ltd. In the year 2016 it
decreased by 2% to Rs.2446. In the year 2017 it was increased by 9% and reached Rs.2252
million. In the year 2018 it was increased by 11% and reached to Rs.2310. In the year 2019, it
has again increased by 11% and reached to Rs. 2079 million. In the year 2020, it has again
increased 69% and reached to Rs. 3449 million. Above table shows that the growth in fixed
deposits it is rather fluctuating. Since the fund of fixed deposit can be utilized for long-term
investment, it should be made consistent. So, such increase and drastic decrease affects the
profitability of the company.

Table 5

Interest Bearing Deposit Trend of Everest Bank Ltd.

Year Interest Bearing Growth(Rs.) Growth(%)

deposit
2016/17 12363 -222 -2
2017/18 10022 -2341 -3

13
 2018/19 11106 1084 10
2019/20 11446 340 3
2020/21 16071 4625 29
(source: Annual Report, Everest Bank Ltd)

Non-interest bearing deposit

Figure 5: Interest Bearing Deposit

Table 5 and figure 5 shows the Interest bearing deposit of EVEREST Bank Ltd. In the year 2016 it
decreased by 2% to Rs. 12,363. But there was decrease in interest bearing deposit during the
year 2017 it decreased by 23% to Rs. 10,022. In the year 2018 it was increased by 10% and
reached to Rs.11,106 million. But there was increase in interest bearing deposit by 3% in year
2019 and reached to Rs. 11,446. In the year 2020, it has increased by 29% and has reached to
Rs.16,071 million.

Table 6:

Non-Interest Bearing Deposit Trend of Everest Bank Ltd.

Year Non-interest Growth (Rs) Growth(%)

14
 bearing deposit
2016/17 3142 -112 -3
2017/18 3424 282 8
2018/19 3012 -412 -14
2019/20 3140 128 4
2020/21 3276 136 4
(source: Annual Report, Everest Bank Ltd)

Non-interest bearing deposit

Figure 6: Non-Interest Bearing Deposit

Table 6 and figure 6 shows the non-interest bearing deposit of EVEREST Bank Ltd. In the year
2016 it was decreased by 3% and reached to Rs.3,142. In the year 2017 it increased by 8% Rs.
reached Rs.3,424 million. In the year 2018 the non-interest bearing deposit decreased by 14%
million which is corresponding to Rs.3,012. And in the year 2019 the interest bearing deposit
increased by 4% and reached Rs.3,140. Now, in the recent year 2020, the non-interest bearing
deposit has increased by 4% and reached to Rs.3,276 million.

Table 7

15
 interest Expenses on total Deposit

Year Interest on Total Deposit Rs. Ratio %= A/B*100

Deposit(A) (B)
2016/17 457 15506 2.94
2017/18 307 13448 2.28
2018/19 265 14119 1.88
2019/20 244 14587 1.67
2020/21 359 19347 1.86
(source: Annual Report, Everest Bank Ltd)

Interest on Deposit(A)
Total Deposit Rs.(B)

figure 7: interest Expenses on Total Deposits

Table 7 and figure 7 presents the interest expenses on deposit. In the year 2016 the total
collection of deposit was Rs. 15,506 while interest on deposit was Rs. 457 of the total deposit,
which is 2.29% ratio. In the year 2017 total deposit and interest of rate on deposit are Rs.
12,448 and Rs. 307, which is 2.28% of total deposit. In the year 2018 the total collection of
deposit was 14,119 while

deposit interest on deposit was 265, which is only 1.88% of total deposit. In year 2019 the
collection of was 14,587 while interest on deposit was 244 which is 1.67%. In the year 2020 the
collection of deposit was Rs. 19,347 million and interest on deposit is 359 millions.

16
Table 8

Interest Lending Ratio

Year Deposit Lending %

2016/17 47.96
2017/18 57.67
2018/19 57.99
2019/20 72.57
2020/21 66.79
(appendix 1)

Interest on Deposit(A)
Total Deposit Rs.(B)

Figure 8: Deposit Lending Ratio

The above the table and figure analyses shows the ratio of total loans and advances to total
deposits During the year 2016 the deposit-lending ratio was 47.96% of total deposit. The ratio
decreased by 47.96% of total deposit in the year 2017 the total deposit decreased but the loans
and advances could be increased. Total loans and advances in the year 2018 were 57.99% of
total deposit

17
corresponding to Rs.8,189. In the year 2019, both total deposit and loan and advances has been
increased. Therefore, the deposit-lending ratio has reached to 72.57% of total deposit. In the
2020 the deposit-lending ration was again increased by 66.79% and reached Rs. 12,922.

Table 9

Ratio of Interest Bearing Deposit to Total Deposits (RS. in million)

Year Ratio %
2016/17 79.73
2017/18 74.52
2018/19 78.65
2019/20 78.47
2020/21 83.07
(Appendix 2)

Deposit Lending %

Figure 9: Ratio of Interest Bearing Deposit to Total Deposit

18
In the above table 9 and figure 9, ratio of interest bearing deposit to total deposits of EVEREST
has been presented. In the year 2016 it was 79.73% corresponding to Rs. 15,506. In the year
2017 both the interest bearing deposit and total deposit decreased and the interest bearing
deposit shared 74.52% of total deposit of Rs. 10,022 million. It again decreased in year 2018
and the ratio was 78.65% of total deposit. In the year 2019 interest-bearing deposit is Rs.
11,446 corresponding to Rs. 14,587 million by 78.47%. Now, in the year 2020, both the interest
bearing deposit and total deposit has increased. But the ratio reached to 83.07% of total
deposit.

Table 10

Ratio of non-interest bearing deposit to total deposit (Rs. in million)

Year Ratio
2016/17 20.26
2017/18 25.46
2018/19 21.33
2019/20 21.33
2020/21 16.93
(Appendix 3)

19
 Object 23

Figure 10: Ratio of Non-Interest Bearing Deposit to Total Deposit

Table 10 and figure 10 shows the ratio of non-interest bearing deposit to total deposits of
EVEREST Bank Ltd. In the year 2016 it was 20.26% corresponding to Rs.3,142. Similarly in the
year 2017 non-interest bearing deposit shared 25.46% of total deposit Rs. 13,448 million. In
year 2018 non-interest bearing deposit shared only 21.33% of total deposit as only Rs.3,012
million was collected. In the year 2019 non-interest-bearing deposit is shared only 21.53% of
total deposit

corresponding to Rs.3,140. Now, in the year 2020, it shared to 16.93% of total deposit where
non- interest bearing deposit and total deposit are Rs.3,276 and Rs.19,347 million respectively.

2.2 Major Findings

* Interest expenses on deposit of EVEREST are also quite high but there has been a decreasing
trend of interest expenses till the year 2020.

* Similarly, the cost of deposit during the year 2020 is also quite high but there has been
decreasing trend in the later year. So, it helps to increase the efficiency to bank.

* By the analysis of deposit landing we can conclude that the bank is able to utilize its deposits
a greater extent.

* Thus, the bank's performance is effective in profitability and towards the customers and may
attract more customers.

20
 CHAPTER III: SUMMARY AND CONCLUSION

3.1 Summary
A bank is an institution, which deals in money. A bank is like a reservoir. It draws surplus money
from the people who save and lend them to the people who want to use it for productive
purpose. In this process the bank earns commission. The rate of interest paid to the depositors
is generally lower than the rate charged to the borrowers. The difference between these two
rates of interest is the profit of the bank. Deposit collection is the main function of commercial
bank. The present study has been undertaken to examine and evaluate the financial
performance of EVEREST. The financial statements of five years that is from 2000/01 to
2004/05 have been examined for the purpose the study. The study has resorted mainly to
secondary data that has been first processed and analyzed comparatively. Individual interview
with the management personnel has been taken whenever necessary. This study is exploratory
as well as analytical sometimes. EVEREST was established in 12th July 1984, which was the first

21
 joint venture bank in Nepal. Among many joint venture banks, it is a leading one, which is
always running in profit due to its proper management and good policies. Data that I have
presented is all from the secondary sources, which are in the annual reports or other printed
matters. A customer can be account holder when he opens account. There are the numbers of
rules and procedures regarding opening different types of accounts. The interest rates on
different accounts are different.

3.2 Conclusion
• The deposit of EVEREST is in increasing trend. The share of fixed deposit is more
than that of savings, current, margin and other deposits in the deposit mix of
EVEREST.

• The trend of interest bearing deposit has been gradually increasing but there
has been more fluctuation in non-interest bearing deposits, similarly, there is also
more fluctuation in interest expenses on total deposits.

● The trend analysis shows that the deposit of EVEREST is in increasing trend.
In addition to this, the bank is being able to satisfy its customers and in
providing higher quality and newer services to them.

• Although EVEREST has a strong financial base and capital structure as well as
good market status and reputation in order to attract new customers and
increase deposit collection EVEREST should introduce new schemes.

• Customer services should be diversified and should further be accommodated.

● Interest rate on deposit should be competitive with other commercial

Banks
● The bank should aim towards increasing its customers but it must also
provide the quality services to the present customers. For this the bank
must make plans and policies keeping customers in mind.

• Bank should also pay attention towards the priority sector and industrial sector
for lending loans to develop the economic condition of the country.

22
• Bank should provide more facilities to the staff, it has to provide job satisfaction,
training and should encourage its staff.

BIBLIOGRAPHY
Bista R, khatiwada b, books by Rastriya Banijya Bank Audited Manual, public by ashis books
house p.v.1(2075/76) kathmandu

VERSHNEY P.N "Banking Low Practies" Sultan Chanda and Sons

Maheshwari S.R. "Principle of accounting" Sultan Chanda and Sons

Joshi PR " Business Research Method" by samjhana publication

Commercial Bank Management books Samjhana Public House, Kathmandu

Adhikari, D. R & Pandey, D.L. (2012). Business research methods. Kathmandu: AsmitaBooks
Publishers.

Horne, V. J. C., & Wachowicz, J.M. (2005). Financial statement analysis (11th edition).

23
 Khan, M.Y. and Jain P.K. (1997). Management Accountancy, New Delhi: Mc Graw-Hill Publishing
company Ltd

Pandey, I. M. (2004). Financial statement analysis (9th edition). New Delhi, India: Vikas
Publishing House Pvt Limited.

Weston, J. F., & Brigham, Eugene F. (1972). Managerial Finance, New York, Holt Saunders,
International Editions.

Saunders, A., & Cornett, M.M. (2019). Financial Markets and Institutions (7th edition). New
York, USA: McGraw Hill.

Web sites

http//www.google.com http//www.everestbank.com.np

http//www.nrb.gov.com.np

APPENDIX

1. Deposit lending Ratio

Year Total Deposit (RS.) Total Loans and Deposit Lending %

(A) Advance (RS.)(B) (B/A)
2016/17 15506 7438 47.96
2017/18 13448 7756 57.67
2018/19 14119 8189 57.99
2019/20 14587 10586 72.57
2020/21 19347 12922 66.79

24
2. Ratio of Interest Bearing Deposit to Total Deposit

Year Interest Bearing Total deposit(B) Ratio(A/B)

Deposit(A)
2016/17 12363 15506 79.73
2017/18 10022 13448 74.52
2018/19 11106 14119 78.65
2019/20 11446 14587 78.47
2020/21 16071 19347 83.07

3. Ratio of non-Interest bearing deposit to Total deposit

Year Non-Interest Total deposit(B) Ratio(A/B)

bearing deposit(A)
2016/17 3142 15506 20.26
2017/18 3424 13448 25.46
2018/19 3012 14119 21.33
2019/20 3140 14587 21.53
2020/21 3276 19347 16.93
Average 21
( source: annual report, Everest bank limited)

25