ANALYSIS OF FINANCIAL STATEMENT OF EVEREST BANK

LIMITED

A Research Proposal

Submitted By:

Pankaj Yadav

T.U. Regd. No.: 7-2-52-329-2020

Bhairahawa Multiple Campus

Group: Finance

Submitted to

The Faculty of Management

Tribhuvan University

Kathmandu, Nepal

In Partial fulfillment of the requirements for the degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Siddharthnagar, Bhairahawa

April, 2025

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1. Introduction:

Financial performance analysis is the process of analyzing a company's

financial statements for decision-making purposes and to understand the overall
health of an organization. Financial statements record financial data, which
must be evaluated through financial performance analysis to become more
useful to investors, shareholders, managers, and other interested parties. It is the
method of evaluating past, present, and projected performance of a company.
Analysts track performance measures across financial statements using several
different methods for financial performance analysis, including vertical,
horizontal, and ratio analysis. It helps to analyze whether an entity is stable,
solvent, liquid or profitable enough to warrant a monetary investment. It is
therefore essential to analyze the financial statement to know the actual financial
performance and financial position of the organization.

2. Profile Of Organization

Everest Bank Limited (EBL) is one of the leading commercial banks of Nepal
with the mission of “Growth Through Banking For All” . It has been in
operation in Nepal since 1994 A.D. It’s joint venture partner is Punjab National
Bank (PNB), one of the largest nationalized bank in India holding 20% of its
equity .It’s present shareholding pattern is 49.19% promoters, 30.78% general
public and 20.03% Punjab National Bank. It was incorporated with a vision to
be leading commercial bank with Pan Nepal presence and become a household
name, providing wide range of financial products and services under one roof.
It currently operates through 131 branches, 32 Revenue Collection Counters and
4 extension counters dedicated to customer service. Further, it operates 167
ATMs all over Nepal.
Everest Bank Limited established with the slogan of “Consistent, Strong &
Dependable” aims to be the household name gaining confidence of its
shareholders, investors, depositors, and other interested parties. For this
purpose, analysis of financial performance is must. The analysis of financial

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 performance manifest various aspects such as stability, profitability, solvency,
and liquidity position of the organization. Information regarding such aspects
of financial statement not only facilitates the users but also the bank itself to
identify its strength and weakness. This will help the bank to formulate plans
and policies for better operation in future. Therefore, this report will portray the
analysis of financial statement of Everest Bank Limited. Analysts track
performance measures across financial statements using several different
methods for financial performance analysis, including vertical, horizontal, and
ratio analysis. This research focuses on analysis of financial statement using
various tools of ratio analysis. Statistical and financial ratios such as liquidity
ratios, profitability ratios, leverage ratios, activity ratios as well as other relevant
financial ratios will be used as data analysis procedures. This study shall include
the data from FY 2076/77 to 2080/81.

3. Statement of Problem

Statement of Problem A statement of problem is a brief description of an issue

to be addressed or a condition to be improved upon. It aims in identifying and
explaining the problem.
In present context of Nepal, commercial banks have good performance. On the
basis of profitability and productivity of commercial banks, public have
confidence in their performance. However, various environmental factors, state
of economy, structure of capital and money market, government policies,
taxation policies and various internal factors have influence upon financial
performance and position of commercial banks. In these circumstances, it is
highly useful to make the study on financial statement of Everest Bank Ltd.
Profitability position and stock prices are the general factors considered for
evaluating the financial performance of Everest Bank Ltd. However, one can
raise a question, “Are these the only factors to reflect the performance of the
bank?”

Thus, the main problem of the study, is to inquire into the financial performance
of Everest Bank Limited.

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 This study is targeted to find out answers to the following questions:
a) What is the financial performance of Everest Bank Limited?
b) Does the overall financial statement depict the financial position
indicating any special strength and weakness of the Bank?
c) Is Everest Bank Limited utilizing its assets efficiently?
d) Everest Bank Limited is considered to be operationally efficient. But
how far it is efficient?

In this context, the main purpose of the study is analyzing the financial
performance of the Everest Bank Limited in terms of turnover, profitability,
liquidity and efficiency in operation.

4. Objective Of the Study

It defines the purpose of this study. Simply, it helps to find out the answer to the
questions stated above. The general objective of this study is to analyze the
financial statements of Everest Bank Limited regarding the financial
performance and position.

Other specific objectives are as follows:

a) To evaluate the financial position of Everest Bank Limited.

b) To analyze the financial performances through the use of appropriate financial
and analytical tools.
c) To identify the profitability position i.e. Earnings per share (EPS), Dividend per
share (DPS) and Return on Asset (ROA).
d) To measure the liquidity, solvency, and efficiency.
e) To determine the past, present and projected performance of the company.

5. Research Methodology

The research methodology is the process used to collect information and data.
The methodology may include interviews, survey, publication, research, and
other research techniques.

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5.1 Research Design

Research design is a plan, structure and strategy of investigations conceived so

as to obtain answer to research questions and to control variance. It is the
arrangement of conditions for collection and analysis of data in a manner aiming
at combining relevance to the research purpose with economy in procedure.
Considering this study objective, the analysis is based on certain research design
.In order to achieve the objective, descriptive and analytical research design has
been adopted. Descriptive research design describes the general paten of
investors business environment, problem of portfolio management etc.

5.2 Population and Sample

The term population of data denotes for data of each organization which is
within the boundary of specific organization whereas sample data are the data
of those organization which has been selected from that whole population for
study. The population data for this study comprises all commercial banks, which
are currently operating in Nepal. The largest group about which the generation
is made is called the population under study or the universe and small portion.
At the present, there are 20 commercial banks operated in the Nepalese market.

For this research all commercial banks are regarded as population and out of
these Everest Bank Limited (EBL) is taken as sample. It is selected by
convenience sampling methods follows:

5.3 Sources of Data Collection

Data can be collected from primary sources and secondary sources. Primary
data are first hand data collected through direct involvement of researcher
whereas secondary data are second hand data which are already collected by
someone else and used by researcher for his/her study. The major data used in
this project report are collected through secondary sources.

5.4 Secondary Data

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 Secondary data are those data, that has previously been gathered and can be
accessed by researchers. Data in this project are collected from published as
well as unpublished sources. Secondary data used in this project are listed
below:

• Annual financial reports of Everest Bank Limited.

• Official website of Everest Bank Limited.
• News papers
• Books and articles

5.5 Data Presentation and Analysis Tool

Various statistical as well as financial ratios are used for analysis of data
obtained in the due course of research. The obtained data is presented, tabulated
and graphed to analyze and achieve the goal of the study. The financial ratios
used for data analysis are:

• Profitability ratios
• Liquidity ratios
• Assets management ratio
And other financial ratios

Further, following tools have been used for data presentation:

• Tabulation
• Bar diagrams
• Pie-chart

6. Chapter Plan

i) Chapter one - Introduction:

It deals with the introductory part. It consists of background of study, banking

scenario in Nepal, profile of the organization, statement of the problem,

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 objective of the study, review of literature, methods of data collection,
limitations of the study and definition of terms.

ii) Chapter two – Result and Analysis:

Chapter two deals with data presentation and analysis of result and findings. It
exhibits systematic presentation of data collected and analysis of result and
findings of project work.

iii) Chapter three - Discussion and Conclusion:

Chapter three, last chapter of the study focuses on evaluating and interpreting
the results obtained. Further, it also deals with present implication of results
obtained and conclusion drawn useful for future studies.

7. Limitation of the study

Limitation tends to narrow the area of study. It is caused due various

undeniable circumstances.
The major limitations of this study are mentioned below:
• The Research is based on records of 5 fiscal years’ analysis only i.e. from
FY 2076/2077 to FY 2080/2081.
• The researcher has used only some statistical tools for presentation and
analysis of data.
• Most of the data used in this study are based on secondary sources mainly
official website of Everest Bank Limited.
• The main focus is to give the quantitative aspect rather than qualitative
aspect.
• The study is based on Everest Bank Limited only.
• It is only for partial fulfillment of Bachelor of Business Studies (BBS).

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8. Tentative Time Frame

The required time duration to complete the proposed study is 1 month.

Pankaj Yadav
BBS 4th year
Bhairahawa Multiple Campus
Siddharthanagar, Rupandehi, Nepal

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