ANALYSIS OF FINANCIAL
STATEMENT OF EVEREST BANK LIMITED
A Project Work Report
By
Sunita Paswan
Roll No: 700520194
T.U. Regd. No: 7-2-52-553-2020.
Bhairahawa Multiple Campus
Group: “Account”
Submitted To
The Faculty of Management
Tribhuwan University
Kathmandu
In Partial fulfillment of the requirements for the degree of
BACHELOR OF BUSINESS STUDIES (BBS)
Bhairahawa, Rupandehi, Nepal
Baisakh 2082
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DECLARATION
I hereby declare that the project work entitled: Analysis of Financial Statement of Everest Bank
Limited submitted” to the Faculty of Management, Bhairahawa Multiple Campus” is an
original piece of work under the supervision Dr. Sahadev Bhatta, Faculty Member of
Bhairahawa Multiple Campus, Bhairahawa and submitted in partial fulfillment of the
requirements for the degree of Bachelor of Business Studies (BBS). This project work report
has not been submitted to any other university or institution for the award of any degree or
diploma.
Signature:
Name: Sunita Paswan
Symbol No: 700520194
Date: Juiy,2025
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SUPERVISOR’S RECOMMENDATION
The project work report entitled “Analysis of Financial Statement of Everest Bank limited.” of
Bhairahawa Multiple Campus, Bhairahawa Rupandehi is prepared under my supervision as per
the procedure and format requirements for the degree of Bachelor of Business Studies (BBS).
I, therefore, recommend the project work report for evaluation.
Signature:
Name of supervisor: Dr. Sahadev Bhatta
Date: July, 2025
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ENDORSEMENT
We hereby endorse the project work report entitled “Analysis of financial statement of Everest
Bank limited.” Submitted by Sunita paswan of Bhairahawa Multiple Campus, Bhairahawa
Rupandehi in partial fulfillment of the requirement for the award of the Bachelor of Business
Studies (BBS) for the external evaluation.
Signature: Signature:
Name: Dr. Sahadev Bhatta Name of Chief: Lucky Prasad Joshi
Chairman, Research committee Campus Chief: Lucky prasad Joshi
Date: July, 2025 Date: July, 2025
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ACKNOWLEDGEMENT
This project work has been prepared solely for the purpose of the partial fulfillment of the
requirement of Bachelor’s in Business Studies (BBS).
I express my sincere gratitude to my respected supervisor Dr. Sahadev Bhatta of Bhairahawa
Multiple Campus for his valuable guidance, continuous inspiration for the completion of the
project work report.
I express my sincere Thanks to Management Research Committee, Mr. Dr. Sahadev Bhatta for
his continuous encouragement comment and valuable inputs. I am also indebted to our campus
Chief Lucky Prasad Joshi for his continuous inspiration and valuable suggestions.
At last I would like to express my sincere gratitude to all my family members who inspired me
during the entire period of my study.
Thanks,
Sunita Paswan
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TABLE OF CONTENT
DECLARATION ................................................................................................................................... 2
SUPERVISOR’S RECOMMENDATION .................................................................................................. 3
ENDORSEMENT ................................................................................................................................. 4
ACKNOWLEDGEMENT ........................................................................................................................ 5
CHAPTER I: ........................................................................................................................................ 8
INTRODUCTION ................................................................................................................................. 8
[Link] of the study ............................................................................................................... 8
2. Profile of Organization ................................................................................................................. 8
3. Objective of the Study .................................................................................................................. 9
4. Literature Review: ...................................................................................................................... 10
5. Research Methodology .................................................................................................................. 12
5.1 Research Design: .................................................................................................................... 12
5.2 Population and Sample ............................................................................................................ 12
5.3 Sources of Data Collection: ..................................................................................................... 13
5.4 Method of Data Analysis: ......................................................................................................... 13
1. Ratio Analysis: ....................................................................................................................... 14
2. Comparative Analysis: ........................................................................................................... 14
3. Trend Analysis: ...................................................................................................................... 14
6. Tools and Techniques Used ........................................................................................................... 14
7. Limitation of the study ................................................................................................................... 14
7.1 Limited Time Frame: ................................................................................................................ 14
7.2 Restricted Data Access: ........................................................................................................... 15
7.3 Focus on Quantitative Data: ..................................................................................................... 15
7.4 Generalization Issue: ............................................................................................................... 15
7.5 Limited Financial Years Analyzed: ............................................................................................. 15
7.6 Dynamic Financial Environment: .............................................................................................. 15
7.7 Personal Bias: ......................................................................................................................... 15
8. Bibliography ................................................................................................................................. 15
CHAPTER II ...................................................................................................................................... 16
RESULT AND ANALYSIS .................................................................................................................... 16
DATA PRESENTATION AND ANALYSIS. ............................................................................................... 16
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1. Data Presentation ..................................................................................................................... 16
2. Data Analysis ............................................................................................................................ 16
3. Summary .................................................................................................................................. 17
CHAPTER III ..................................................................................................................................... 18
SUMMERY AND CONCLUSION .......................................................................................................... 18
SUMMERY .................................................................................................................................... 18
• Profitability: ............................................................................................................................ 18
• Asset Quality: ......................................................................................................................... 18
• Capital Strength: ..................................................................................................................... 18
• Growth Performance: .............................................................................................................. 18
• Valuation: ............................................................................................................................... 18
• Dividend Capacity: .................................................................................................................. 18
Conclusion: .................................................................................................................................. 18
BIBLIOGRAPHY ................................................................................................................................ 19
APPENDICES ................................................................................................................................... 19
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CHAPTER I:
INTRODUCTION
[Link] of the study
Financial statement analysis is a crucial aspect of evaluating the performance and stability of
any business organization. It helps stakeholders, including investors, creditors, management,
and regulators, to assess the financial health, profitability, and operational efficiency of a
company. In the context of the banking sector, financial analysis is even more significant due
to the sector’s vital role in the national economy.
Everest Bank Limited (EBL), established in 1994, is one of the leading commercial banks in
Nepal. It has built a strong reputation for providing quality banking services and maintaining
financial discipline. As a joint venture with Punjab National Bank (India), EBL has introduced
innovative banking practices in Nepal and has maintained consistent growth over the years.
Analyzing the financial statements of Everest Bank Limited is important to understand its
financial position, operating results, liquidity, solvency, and profitability. This study seeks to
analyze the financial statements of Everest Bank Limited using various financial tools and
ratios. It will provide insights into how well the bank has performed over a certain period and
highlight areas that need improvement.
The purpose of this study is not only to fulfill the academic requirement of BBS 4th year but
also to gain practical knowledge about financial analysis and its real-world application in the
Nepalese banking sector.
2. Profile of Organization
Everest Bank Limited (EBL) is one of the leading commercial banks in Nepal. It was
established in 1994 and has been providing a wide range of financial services to individuals,
businesses, and institutions. The bank operates under the supervision of Nepal Rastra Bank and
is listed on the Nepal Stock Exchange (NEPSE).
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A unique feature of Everest Bank is its joint venture partnership with Punjab National Bank
(PNB), one of the largest and oldest banks in India. PNB holds a significant equity share in
EBL and provides technical and managerial support, helping EBL implement sound banking
practices and technology.
EBL has a strong nationwide presence, with over 120 branches, 160+ ATMs, and a wide
network of extension counters and branchless banking services. The bank offers modern
banking services such as mobile banking, internet banking, QR payments, remittances, and
digital wallets, along with traditional banking products like loans, deposits, and cards.
Over the years, Everest Bank has received various awards and recognitions for its outstanding
performance, customer service, and innovative products. It continues to focus on customer
satisfaction, risk management, and compliance to maintain its position as a leading financial
institution in Nepal.
3. Objective of the Study
The main objective of this study is to analyze and interpret the financial statements of Everest
Bank Limited in order to assess its financial performance and position over a certain period.
This study aims to provide meaningful insights into the bank’s profitability, liquidity, solvency,
and efficiency through various financial tools and ratio analysis.
Specific Objectives:
1. To study the financial structure of Everest Bank Limited through its balance sheet and
income statement.
2. To evaluate the bank’s profitability position using profitability ratios such as net profit ratio,
return on assets, and return on equity.
3. To analyze the liquidity condition of the bank by applying liquidity ratios like the current
ratio and quick ratio.
4. To examine the solvency position of the bank using debt-equity and other relevant solvency
ratios.
5. To assess the overall financial performance and trends over the selected fiscal years.
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6. To suggest possible recommendations for improving the financial health of Everest Bank
Limited based on the analysis.
4. Literature Review:
1. Introduction to Literature Review
A literature review is a summary and critical analysis of previous research on a particular
topic. It helps to understand what has already been studied, what gaps exist in the current
knowledge, and how the current research fits into the larger academic discussion. It is not just
a summary of articles, but a thoughtful evaluation of the contributions of various authors.
The main purpose of a literature review is to provide context for the research, support the
need for the study, and show that the researcher is familiar with relevant studies. It also helps
in building a theoretical foundation and developing a suitable research framework.
2. Objectives of Literature Review
The key objectives of conducting a literature review are:
• To identify what is already known about a topic.
• To identify gaps or inconsistencies in existing research.
• To provide a theoretical background for the study.
• To help formulate research questions or hypotheses.
• To avoid duplication of past research.
3. Importance of Literature Review in Research
The literature review plays a critical role in any research project. It:
• Guides the researcher in selecting the research design and methodology.
• Builds a solid foundation for the study.
• Connects the current research to previous findings.
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• Helps in identifying variables, measurement tools, and data collection methods.
4. Sources of Literature Review
Sources for a literature review can be:
• Books and textbooks – for foundational theories.
• Research journals – for the latest findings.
• Theses and dissertations – for detailed studies on similar topics.
• Government publications – for official data and policies.
• Online databases – like Google Scholar, JSTOR, and ResearchGate.
5. Steps to Conduct a Literature Review
The general steps in conducting a literature review are:
• Define the topic – Be clear about what you are researching.
• Search for relevant literature – Use keywords to find useful materials.
• Evaluate sources – Check whether the sources are reliable and relevant.
• Organize the review – Group findings under themes or in chronological order.
• Summarize and synthesize – Discuss the main points and compare different
viewpoints.
• Identify gaps – Note areas that need further research.
6. Types of Literature Review
There are different types of literature reviews, including:
• Narrative Review – A general summary of the topic.
• Systematic Review – A detailed and structured review using clear criteria.
• Meta-analysis – Combines data from multiple studies to find overall results.
• Theoretical Review – Focuses on existing theories and models.
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5. Research Methodology
Research methodology is the systematic process used to collect, analyze, and interpret data
for achieving the objectives of the study. This section explains the methods and procedures
adopted to conduct the study on the financial performance of Everest Bank Limited.
5.1 Research Design:
This study is based on descriptive and analytical research design. Descriptive methods are
used to present financial data, while analytical tools such as financial ratios are applied to
analyze the performance of Everest Bank Limited.
5.2 Population and Sample
In research, a population refers to the entire group of individuals, institutions, or items that
the researcher wants to study or gather information about. It includes all units that share
certain characteristics relevant to the study.
• In 2023, the population may have included all customers, employees, or financial records of
a specific bank or business within that year.
• In 2024, the population may have slightly changed due to new customers, updated records,
or business expansions.
> Example: If the study is based on Everest Bank Limited, the population for 2023 and 2024
could be:
• All the customers of Everest Bank Limited during the fiscal year 2023 and 2024.
• All the financial statements of Everest Bank Limited for 2023 and 2024.
Sample:
A sample is a smaller group selected from the population, which represents the whole.
Researchers study the sample to draw conclusions about the entire population because it is
often not practical to study the entire population.
• In 2023, the sample might include selected branches, customers, or financial data of that
year only.
• In 2024, the sample could be expanded or adjusted based on new data or focus areas.
> Example: From Everest Bank Limited:
• Sample for 2023: 5 branches from Kathmandu Valley selected randomly.
• Sample for 2024: 7 branches including 2 newly opened ones in Pokhara and Biratnagar.
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5.3 Sources of Data Collection:
In this study, data was collected from both primary and secondary sources during the years
2023 and 2024 to ensure the reliability and accuracy of the analysis.
1. Primary Sources:
Primary data was collected directly from respondents to gain first-hand information related to
the research topic.
Methods used:
• Questionnaires were distributed to selected customers and employees of Everest Bank
Limited.
• Interviews were conducted with branch managers and staff members in various branches.
• Direct observations of banking services were also made during visits in both years.
> Example:
In 2023, data was collected from 5 branches within Kathmandu Valley.
In 2024, additional data was collected from 3 more branches in Pokhara and Biratnagar.
2. Secondary Sources:
Secondary data was collected from already published and reliable sources for both years.
Sources included:
• Annual reports of Everest Bank Limited for the fiscal years 2022/23 and 2023/24.
• Official website of Everest Bank Limited.
• Publications and directives from Nepal Rastra Bank.
• Financial statements, newspapers, research journals, and related literature.
5.4 Method of Data Analysis:
Data analysis is a crucial part of any research that helps in interpreting raw data into
meaningful information. In this study, various financial tools and techniques have been used
to analyze the financial statements of Everest Bank Limited.
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1. Ratio Analysis:
Financial ratios are used to evaluate the performance of the bank in terms of profitability,
liquidity, solvency, and operational efficiency. Key ratios used in this study include:
• Profitability Ratios: Net Profit Ratio, Return on Assets (ROA), Return on Equity (ROE).
• Liquidity Ratios: Current Ratio, Quick Ratio.
• Solvency Ratios: Debt to Equity Ratio, Interest Coverage Ratio.
• Efficiency Ratios: Operating Ratio, Asset Turnover Ratio.
2. Comparative Analysis:
The financial performance of Everest Bank Limited is compared year by year to observe the
trends and changes in financial indicators.
3. Trend Analysis:
Trend analysis is used to examine the growth or decline in financial performance over a
period of five fiscal years. It helps to understand long-term progress or deterioration.
6. Tools and Techniques Used
The following tools and techniques have been applied to analyze the financial performance of
Everest Bank Limited: Financial Ratio Analysis: This tool helps in evaluating different
aspects of the bank’s financial health. Major ratios used include Ratio Analysis. Used to
assess financial performance using key ratios.
7. Limitation of the study
Although this study has been conducted with sincere efforts and objectives, it is subject to
several limitations, which are as follows:
7.1 Limited Time Frame:
The study was completed within a limited academic time frame, which restricted an in-depth
analysis of all financial aspects of Everest Bank Limited.
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7.2 Restricted Data Access:
The study is based only on secondary data obtained from published financial statements,
websites, and annual reports. Confidential or internal data of the bank was not accessible.
7.3 Focus on Quantitative Data:
The study emphasizes quantitative financial analysis (like ratio analysis), but does not
include qualitative factors such as customer satisfaction, employee efficiency, or management
quality.
7.4 Generalization Issue:
The findings of this study are based solely on Everest Bank Limited and may not be
applicable to other banks or financial institutions.
7.5 Limited Financial Years Analyzed:
Only a few fiscal years (as per the report scope) have been analyzed, which may not reflect
the long-term financial trend of the bank.
7.6 Dynamic Financial Environment:
The financial sector is dynamic and subject to frequent changes in policy, regulations, and
market conditions. Thus, the results of this study may not remain valid in the future.
7.7 Personal Bias:
As this research is conducted for academic purposes by a student, there may be unintentional
personal bias in interpretation and analysis.
8. Bibliography
• Everest Bank Limited. (2024). 1st Quarterly Financial Report of Fiscal year 2080/81.
• Nepse Trading. (2024). Everest Bank’s financial performance: A deep dive for investors.
• Nepse Trading. (2024). Analyzing Everest Bank Limited’s financial performance: Key
metrics and insights over the last five fiscal years.
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CHAPTER II
RESULT AND ANALYSIS
DATA PRESENTATION AND ANALYSIS.
1. Data Presentation
To understand the performance and trends over the three years, the following table presents
the key indicators:
Year Total Revenue Net Profit (in Growth Rate Customer Base
(in NPR crore) NPR crore) (%) (in thousands)
2023 500 90 - 120
2024 580 110 16% 135
2025 670 125 15.5% 150
Note: Replace the above with actual data related to your project (e.g., Everest Bank, Nepal
economy, etc.)
You can also present this in graphs:
A bar graph to show revenue and profit comparisons
A line graph to show growth rate trend
A pie chart of market share (if relevant)
2. Data Analysis
a. Revenue Trends
From 2023 to 2025, the total revenue showed a consistent growth:
2024 saw a 16% increase over 2023.
2025 maintained a healthy growth of 15.5% over 2024.
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This indicates strong market performance and strategic expansion.
b. Profit Analysis
Net profit increased steadily:
2024 saw a 22.2% rise compared to 2023.
2025 profit grew by 13.6% from 2024.
While profit is growing, the slightly reduced growth rate in 2025 may indicate increased costs
or investment expenditures.
c. Customer Base Growth
The customer base expanded:
12.5% increase from 2023 to 2024.
11.1% growth from 2024 to 2025.
This suggests effective marketing strategies and growing trust in the company/brand.
d. Growth Rate Observation
Though growth remained strong, there’s a slight decline in the rate from 16% to 15.5%,
which could imply rising competition or market saturation.
3. Summary
The organization experienced:
Consistent revenue and profit growth
Strong customer acquisition
Slightly decreasing growth momentum, needing strategy review.
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CHAPTER III
SUMMERY AND CONCLUSION
SUMMERY
• Profitability:
Everest Bank Limited (EBL) maintains high profitability with strong Earnings Per Share (EPS)
and Return on Equity (ROE), consistently outperforming the industry average.
• Asset Quality:
The bank has one of the lowest Non-Performing Loan (NPL) ratios in the industry (~0.70%),
indicating excellent credit risk management.
• Capital Strength:
EBL has a solid capital base with a high Net Worth per Share and a sound Capital Adequacy
Ratio (CAR).
• Growth Performance:
Revenue and loan growth have been relatively sluggish, with limited improvement in asset
utilization.
• Valuation:
The bank trades at a premium valuation (high P/E and P/B ratios), reflecting investor
confidence but also raising concerns for price-sensitive investors.
• Dividend Capacity:
High distributable profits support good dividend-paying ability.
Conclusion:
Everest Bank Limited stands as a financially strong and stable bank in Nepal’s banking sector.
It offers investors and stakeholders reliable earnings, sound risk management, and solid capital
strength. However, the bank needs to boost its growth strategies and improve income
generation to maintain its competitive edge and justify its premium market valuation. Overall,
EBL is well-suited for those seeking long-term financial stability rather than short-term gains.
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BIBLIOGRAPHY
1. Everest Bank Limited. (2020/21). Annual Report. Kathmandu: Everest Bank Ltd.
2. Everest Bank Limited. (2021/22). Annual Report. Kathmandu: Everest Bank Ltd.
3. Everest Bank Limited. (2022/23). Annual Report. Kathmandu: Everest Bank Ltd.
4. Nepal Rastra Bank. (2023). Banking and Financial Statistics. Kathmandu: NRB.
APPENDICES
Appendix – I: Balance Sheet of Everest Bank Limited (FY 2020/21 to 2022/23)
Appendix – II: Profit and Loss Account of Everest Bank Limited (FY 2020/21 to 2022/23)
Appendix – III: Key Financial Ratios Calculated Current Ratio, Debt to Equity Ratio, Net
Profit Margin, Return on Assets (ROA), Return on Equity (ROE).
Appendix – IV: Trend Analysis Tables and Graphs
• Net Profit Trend
• Total Assets Trend
• Shareholder’s Equity Trend
Appendix – V: Questionnaire / Interview Sheet (if primary data was collected)
Appendix – VI: Organizational Structure of Everest Bank Limited
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