Report on everest bank sujiqt

A STUDY ON DEPOSIT ANALYSIS OF
EVEREST BANK LIMITED

A Project Work Report

Submitted by
Sujit Panta
Aadikavi Bhanubnakta Campus
T.U. Regd. No: 7-2-288-154-2016
Symbol no: 2880082

Submitted to
Office of the Dean
The Faculty of Management
Tribhuvan University

In Partial Fulfillment of the Requirements of the Degree of
Bachelor of Business Studies

Damauli, Tanahun
January, 2021

Declaration
I hereby declare that the project work entitled “A STUDY ON DEPOSIT ANALYSIS OF
EVEREST BANK LIMITED “submitted to the Faculty of Management, Tribhuvan
University, Kathmandu is an original piece of work under the supervision of Mr.Chij
Kumar Shrestha , faculty member, Aadikavi Bhanubhakta Campus and is 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.

…………………
Sujit Panta
T.U. Reg.no: 7-2-288-154-2016
Symbol no: 2880082
Date: January, 2021

ii

Supervisor’s Recommendation

The project work report entitled “A STUDY ON DEPOSIT ANALYSIS OF EVEREST
BANK LIMITED” submitted by Sujit Panta of Aadikavi Bhanubhakta Campus, Damauli
is prepared under my supervision as per the procedure and format requirements laid by the
Faculty of Management, Tribhuvan University, as partial fulfillment of the requirements
for the degree of Bachelor of Business Studies (BBS). I, therefore, recommend the project
work report for evaluation.

…………………………
Chij Kumar Shrestha
Date: January, 2021

iii

Endorsement

We hereby endorse the project work report entitled “A STUDY ON DEPOSIT ANALYSIS
OF EVEREST BANK LIMITED” submitted by Sujit Panta of Aadikavi Bhanubhakta
Campus, Damauli in partial fulfillment of the requirements for the degree of the Bachelor
of Business Studies (BBS) for external evaluation.

……………..

………………….

Mr. Chij Kumar Shrestha

Mr. Maha Prashad Hadkhale

Supervisor

Principal

Aadikavi Bhanubhakta Campus

Aadikavi Bhanubhakta Campus

Date: January, 2021

Date: January, 2021

iv

Acknowledgement

Project report writing is very challenging task. A report is a formal statement of a research
process and its results. It is the final output of report work assignment. The systematically
and carefully written report represents the correct findings of the problem.
I appreciate the chance provided by Tribhuvan University which has made the fieldwork
report preparation Compulsory for B.B.S 4rd year which has made me capable to put my
effort in the field of research. I would like to thank my course instructor and teachers for
providing me an opportunity to prepare this report, which was highly interesting and
educative for the students as the part of our course requirement.
Firstly, I would like to thank the Faculty of Management of Tribhuvan University, which
had given me the chance to study the detail history of the organization and to make a
necessary report. My sincere gratitude goes to Aadikavi Bhanubhakta Campus’s faculty
members who guided the for the report preparation through various orientation classes
meanwhile, special thanks to my thesis supervisor Mr. Chij Kumar Shrestha for guiding
me during this whole period of writing this report.
Similarly, I would like to thank to all the staffs of the EBL including their IT staff for
maintaining updated information in their official website which was a great source of
information for giving a complete shape of the report.
Last but not the least, I would like to thanks all my family members, relatives, my friend
and all those helping hands who have directly and indirectly contributed for completing
the report successfully.
Thank you.

Sujit Panta
T.U. Reg.no: 7-2-288-154-2016
Symbol no: 2880082
Date: January, 2021
v

TABLE OF CONTENTS
Title Page…………………………………………………………………………i
Declaration……………………………….…………………………………….. ii
Supervisor’s Recommendation……….…………………………………………iii
Endorsement…………………………………………………………………….iv
Acknowledgements…………………………………………………………….v
List of Tables…………………………………………………………………..vii

List of Figures……………………………………………………………viii
Abbreviations……………………………………………………………………ix

CHAPTER 1: INTRODUCTION………………………………………,,,,.1
1.1. Background of the Study………………………………………………1
1.2. Brief Introduction to Everest Bank Ltd………………………………………7
1.3. Objectives of the Study………………………………………………..9
1.4. Rationale/Significance of the Study……………………………………9
1.5. Literature Review…………………………………………………………..9
1.6. Methods of Study…………………………………………………….11
1.7. Limitations of Study……………………………………………………….13

CHAPTER 2: RESULTS AND ANALYSIS ………………………….,,,,..14
2.1. Data Presentation…………………………………………………………14

CHAPTER 3: SUMMARY AND CONCLUSION……………………,,,,,.28
3.1. Summary……………………………………………………………………28
3.2. Conclusion…………………………………………………………………29
Reference…………………………………………………………………30
Appendix………………………………………………………………….31

vi

LISTS OF TABLES

Table 1: Total Deposit Position of EBL ………………………………………………………………… 14
Table 2: Fixed Deposit to Total Deposit Ratio ……………………………………………………….. 15
Table 3: Saving Deposit to Total Deposit Ratio ……………………………………………………… 16
Table 4: Current Deposit to Total Deposit Ratio …………………………………………………….. 18
Table 5: Margin Deposit to Total Deposit Ratio …………………………………………………….. 19
Table 6: Call Deposit to Total Deposit Ratio………………………………………………………….. 20
Table 7: Total loan and advances………………………………………………………………………….. 21
Table 8: Total Loan and Advances to Total Deposit Ratio ………………………………………. 22
Table 9: Performing Loan to Total Loan and Advance ratio …………………………………….. 24
Table 10: Non-Performing to Loan and Advances Ratio …………………………………………. 25
Table 11: Secured Loan to Loan and Advance ratio………………………………………………… 27

vii

LISTS OF FIGURES

Figure 1: Fixed Deposit to Total Deposit Ratio ……………………………………………………… 15
Figure 2: Saving Deposit to Total Deposit Ratio …………………………………………………….. 15
Figure 3: Current Deposit to Total Deposit Ratio ……………………………………………………. 18
Figure 4: Margin Deposit to Total Deposit Ratio ……………………………………………………. 19
Figure 5: Call Deposit to Total Deposit Ratio ………………………………………………………… 21
Figure 6: Total Loan and Advances to Total Deposit Ratio ……………………………………… 23
Figure 7: Non-Performing to Loan and Advances Ratio ………………………………………….. 21

viii

CHAPTER 1
Introduction

1.1. Background of the Study
Financial institution is considered as the back bone in the development of the national
economy. It is the financial institution, which act as the transaction of money by accepting
various types of deposit disbursing loans and rendering other financial services. So, among
the various function, to provide loan to the investors is the major function. Through the
loan there will be increase in environment of the investment and the bank has the major
role in creating such an environment. Financial institution plays a vital role in the economic
development of a country. In fact, in the modern industrialized and service-oriented era,
the availability of banks with competitive services is the measure of economic development
of a country. While many people believe that banks play only a narrow role in the economy
taking deposit and making loans the modern banking has had to adopt new roles in order
to responsive to public needs.
Overall national economy of any country depends upon the economic development of that
country and economic development largely depends upon the financial infrastructure of
that country. Therefore, the primary goal of any nation including Nepal is rapid economic
development to promote the welfare of the people and the nation as well. Nepal being one
of the least developed countries has been trying to embark upon the path of the economic
development very late, only from early fifties of the 19th century. The agriculture-based
economy, vast mountainous landforms, political instabilities, landlocked situation and poor
resource mobilization, which have slowed down the pace of development.
After the establishment of Nepal bank limited on 30th Kartik, 1994 B.S. modern banking
system started in Nepal. Under the Nepal Rastra Bank act 2012, Nepal Rastra Bank was
established on 14thBaishak, 2013 in Nepal Rastriya Banijya Bank was established in
government sector in 2022and agricultural development bank on 17thMagh 2024. Nepal
Arab Bank is the first joint venture bank establish in 2041 under the commercial bank act
2031 and company act 2021.

Commercial banks if successful in increasing the saving habit of people, would have a
great power in multiplying the deposits by the way credit creation and this would multiply
the investment in priority and deprived sector more than the limit granted by the national
savings. But the banks are mainly concentrated in profitable sectors. The latest data shows
the banks are unable to meet the requirement of the investment in these sectors as of the
NRB directives. This has been the practices of many private and joint venture bank that
have not open their branches in rural areas where progress has not been seen in any field.
In contradiction to this, public bank has been successful in opening many branches in the
rural are but they high proportion of default loan and unrecovered loans. But in private
banks they have less loan loss provisions. The ratios of bad loans in government operated
banks i.e., Rastriya Banijya Bank and Nepal Bank Ltd. are greater than other commercial
publicly owned banks, which affect the economic condition of the country. “According to
the international standard, up to 5% bad loan is considered as better one and should be
acceptable. The public banks have around 60% bad loan occupied 20% of the total
deposit”.
There are 27 commercial banks in Nepal. The list of commercial banks are as follows: 1. Kumari Bank
2. Nepal Bank
3. Rastriya Banijya Bank
4. Agriculture Development Bank
5. Nabil Bank
6. Nepal Investment Bank
7. Standard Chartered Bank Nepal
8. Himalayan Bank
9. Nepal SBI Bank
10. Nepal Bangladesh Bank
11. Everest Bank
12. Bank of Kathmandu Limited (After the merger with Lumbini Bank)
13. Nepal Credit and Commerce Bank Limited
14. Prabhu Bank
15. Laxmi Bank
16. Global IME Bank Limited (After the merger with Janata Bank Nepal Limited)
17. Citizens Bank International Limited
18. Prime Commercial Bank
19. Sunrise Bank
20. NMB Bank Nepal
21. NIC Asia Bank
22. Siddhartha Bank
23. Machhapuchchhre Bank

2

24. Mega Bank Nepal Limited
25. Civil Bank Limited
26. Century Bank Limited
27. Sanima Bank

Meaning of Deposit
Deposit collection is one of the main features of commercial bank. According to the
Commercial Bank Act 2031 defines deposit as, “The amount deposited to Current, Saving
or fixed deposit account of banks and financial institutions is called deposits”. A
commercial bank receives deposit in different accounts namely current, fixed, saving,
margin and call.
Thus, bank accepts money on current saving fixed accounts etc. Deposit is the main sources
of capital for the lending activities. Deposits are withdrawn able according to the term of
contracts with the depositors. The banks maintain different types of deposit account.

Types of Deposit
Commercial banks are providing different types of deposit schemes to the general public
taking consideration of their different financial status. The deposit of commercial bank can
be categorized into following two categorizes.

Interest Bearing Deposit
Interest bearing deposits are the deposits where bank requires paying interest to the
depositors.

Fixed Deposit
A fixed deposit also known as time deposit. Under this deposit, customer is required to
keep a fixed amount with bank for a specific period generally by those who do not need
money for a stipulated period. The banks pay higher interest on search deposits. Longer
the time period longer will be interest and vice versa.

Saving Deposit
Saving deposit is also called demand deposit. Saving deposit is one of the deposits, which
is collected from small depositors or low-income investors. The depositors are allowed to
withdraw their money by cheque to the amount prescribed by bank. Banks may impose
certain restrictions on the deposit regarding the number of withdrawals and the amount of
deposited in the given period.

3

Call Deposit
Call deposit is also known as hybrid deposit. It is a combination of current and fixed deposit
to meet the customer requirement in flexible. In other words, the hybrid of current account
and saving account is called call deposits as it contains the characteristics of both saving
and current deposit. The interest rate in call deposit is not fixed and it is determined by
negotiations between the bank and the depositors.

Non- Interest-Bearing Deposit
These are deposit in which bank are not required to pay interest to the depositors.

Current Deposits
Current deposit is the deposit where withdrawal is done on the demand of customers.
Current deposit is also known as demand deposit. Under this deposit, any amount may be
deposited. There are no any restrictions regarding the number of withdrawals or the amount
of the withdrawals. The bank doesn’t pay any interest on such deposit but sometimes bank
may charge a small amount on the customers having current accounts.

Margin Deposit
Margins are required for letter of credit, guarantee, remittance and some other facilities.
This deposit is made for holding margin money of the customers as deposits to avail various
facilities from the bank .it is noninterest bearing deposit. Customers are not allowed to
withdraw any amount from such accounts till the expiry of the availed facilities.

Meaning of Loan
Loan is the lending of money by one or more individuals, organizations, or other entities
to other individuals, organizations etc. The recipient (i.e. the borrower) incurs a debt, and
is usually liable to pay interest on that debt until it is repaid, and also to repay the principal
amount borrowed.

4

Types of loan
Depending upon the nature of the loan, loan can be categorized as the following types
which are:

Performing Loan
A performing loan is a debt on which the borrower has historically made payments on time.
For example, if a homeowner takes out a mortgage and pays his home loan faithfully each
month, his mortgage is considered a performing loan. According to International Monetary
Fund, a performing loan is any loan in which interests and principle payments are less than
90 days overdue; less than 90 days’ worth of the interest has been refinanced, capitalized
or delay by agreement and continued payment is anticipated.

Non-Performing Loan
A non-performing loan is a debt on which the borrower is late on making payments or is
in danger of missing payments. Loans where the borrower is 90 days late on payments are
considered non-performing, but any loan in default or near default may also be called nonperforming loan.
On the basis of security, loan can be classified as:

Secured Loan
A secured loan involves pledging an asset (such as a car, boat or house) as collateral for
the loan. If the borrower defaults, or doesn’t pay back the loan, the lender takes possession
of the asset. These may be available from financial institutions under many different guises
or marketing packages:
▪

Auto

▪

Line of credit

▪

Short term notes

▪

Long term notes

▪

Real Estate
5

Unsecured Loan
An unsecured loan option is preferred, but not as common. If the borrower doesn’t pay back
the unsecured loan, the lender doesn’t have the right to take anything in return. These may
be available from financial institutions under many different guises or marketing packages:
▪

Credit card debt

▪

Personal loans

▪

Bank overdrafts

▪

Credit facilities or lines of credit

▪

Unsecured corporate bonds

▪

Peer to peer lending

6

1.2 Brief Introduction of Everest Bank Limited
Everest bank limited was registered under the company act 1964 in 19th November, 1993
(2049/09/03) and started banking transactions in 16th October 1994(2051/07/01). This is
the joint venture bank with Punjab national bank of India and Nepalese promoters. It is
managed by the team of professionals led by Punjab national bank under the technical
service agreement. Currently the bank has 61 branches including the head office in Nepal.
The bank had rs.240 as an authorized capital, Rs.120 million issued capital, Rs 117.5645
million as paid-up capital in the beginning of the year 2051/52. But now it has paid up
capital of Rs.21738800.
Everest Bank Limited (EBL) provides customer-friendly services through its wide
Network connected through Any Branch Banking Service (ABBS) system, which enables
customers for operational transactions from any branches. The bank has 94 Branches, 120
ATM Counters & 30 Revenue Collection Counters (as on 25th December 2019) across the
country making it a very efficient and accessible bank for its customers, anytime,
anywhere. (Everest Bank)

7

8

1.3. Objectives of The Study
The main motive of this research proposal is:
•
•

To analyze about deposit and loan of Everest Bank Limited (EBL)
To analyze whether the deposits are being properly utilized or not.

1.4. Significance of The Study
Research made especially on deposit analysis of Everest Bank. This study to be made under
the guideline of the previous researches made on commercial banks, which are very few in
numbers. The presentation of this study will also help to clear out the misconceptions of
people about commercial banks regarding their trust worthiness

1.5. Literature Review
“Review of literature means reviewing research studies of other relevant preposition in the
related area of the study so that all part studies, their conclusions and deficiencies may be
known and further research can be concluded.” (Pant& wolf, 1999/23/4). This chapter deals
with the literature, relevant to this study, this part of thesis will essential to know about the
finding of other research which are appropriate to their study. The first part contains
conceptual frame work and remaining parts will contain the reviews of report, articles,
journals and dissertation. This chapter has two parts: (a) Conceptual Framework and (b)
Literature Review of report.

Conceptual Review
It consists of review of textbooks and other reference material such as newspaper,
journals, magazines etc. In general, commercial banks are these financial institutions,
which play the role of financial intermediary in collection and disbursement of fund from
surplus unit to deficit unit. Abrol & Gupta (2002) explain accept deposit and provides
loan primarily to business firm on the other hand the broad concept of commercial bank
holds that the commercial bank is the banking institution other than central banks

9

commercial bank is the only institution other than central bank permitted to accept
demand and deposits.

Review of previous study
Rewet Bahadur Karki (2000) in his article, “Nepalese financial sector: challenges
and solutions” says the financial sector is facing the major challenge of NPL of the banking
sector, which comes around 18% of the total loan but if the loan classification is made
according to least international practice, it is assumed to exceed 30%. Credit demand is
being met largely by non-institutional sources i.e., private lender, merchant, trader,
individual and landlord at very high rate of interest which is 2/3 times higher than that of
institutional source, this shows that the unorganized financial sector is playing a major role
in Nepalese economy. The liquidity position of the banking sector is rated as high as 24%
but the productive sector of the economy is starved by the credit crunch. This has created
a paradoxical situation in banking sector.” Mr. Sunil Chopra (2006) in his article, “Role of
foreign banks in Nepal”, concluded that JV banks are already playing an increasingly
dynamic and vital role in the economic development of the country. This will immediately
increase with the time. Ramesh Lal Shrestha (2009) in his article, “A study on deposits and
credits of CB in Nepal” has concluded that the commercial bank should try to give more
credit entering new fields as far as possible; otherwise, they might not be able to meet their
total expense.

10

1.6 Method of the study
Research methodology is description, explanation and justification of various
methods of conducting research. Descriptive research may be characterized as simply the
attempt to determine, describe or identify what is, while analytical research attempts to
establish why it is that way or how it came to be. Descriptive research identifies problem
or justify current conditions and practices to make comparisons and evolutions in making
future plans and decisions. This research based on descriptive form. These studies are
closely associated with observational studies, but they are not limited with observation
studies, but they are not limited with observation data collection method, case studies.

Population and sample
When it is impossible or very difficult to study the whole population, a part of the
population is selected in order to draw conclusion of the whole population, this process is
sampling and the part selected is called sample. Here, regarding to this study, the whole of
commercial banks are the population of the study. And the selected one commercial bank
viz. Everest bank limited is the sample for the study. Secondary data has been taken in this
study. The data needed are collected from balance sheet, profit and loss account, other
related books of account of the concerned bank, stock exchange board and Nepal Rastra
Bank. The annual reports of concerned finances were obtained from its head office and its
websites. The main source of data is annual report of concern financial institute, NRB
publication, such as banking and financial statistics economic reports, annual reports of
NRB etc.

Types of data
This study is based on historical or secondary data which collected from Annual
report of banks, broachers, published journals, newspapers, published balance sheets,
official websites and other websites. The data for this study is collected from the respective
banks, their brochures and official website as well. Some information and data are drawn
from newspaper articles and annual reports of banks. Those data and information which
could not found through secondary sources are collected from primary sources. This study
is prepared with the help of annual report of the concerned bank.
Secondary data which were used are classified as:
11

Internal sources:
i.

Annual report of Everest Bank Ltd.

ii.

Official website

External sources:
i.

Book publications

ii.

Magazines

iii.

Journals

iv.

Newspaper Articles

v.

Websites

vi.

Annual report of NRB

Data collection procedure
The data has been collected through various sources. Official websites of respective banks
have been used, some other related web sites are used, more reference to analyzing data
with in various books.

Tool of Analysis
In this report, various instruments are used to find out the information regarding the deposit
and loan and advances of the bank. They are used from last five-year data. For the
comparison of various ratios, I have used the following tools which are:
i.

Fixed Deposit to Total Deposit Ratio

ii.

Saving Deposit to Total Deposit Ratio

iii.

Current Deposit to Total Deposit Ratio

iv.

Margin Deposit to Total Deposit Ratio

v.

Call Deposit to Total Deposit Ratio

vi.

Total Loan and Advances to Total Deposit Ratio

vii.

Performing Loan to Total Loan and Advances Ratio

viii.

Non- Performing Loan to Total Loan and Advances Ratio

12

ix.

Secured Loan to Total Loan and Advances Ratio

1.7 Limitations of the Study
This study is done for the partial fulfillment of 4th year BBS. This study has used limited
analysis tools. This study is mainly based on secondary data. Each and every study has its
own limitation. Since, this report is also based on the published financial statement of
commercial banks with other journals, magazines, textbook etc. Some limitations are;
•
•
•
•
•

It is based on only past 5 years data.
The secondary data will be used for the study.
Many important data must have been missing due to unavailability of sufficient
official records.
Analysis is based on the ratio and trend lines of the corresponding ratios only.
The study is only fulfilling the requirement for the degree of bachelor in business
studies, which cannot cover all the dimension of the all subjects matter and resource
and time period is also limited.

13

CHAPTER 2
2.1Data Presentation and Analysis
This chapter focuses on the analysis and interpretation of the data that were collected
during the study. This is the section in which data are presented and analyzed. This chapter
is basically concerned with results and findings.

Total deposit position of EBL
Table 1: Total Deposit Position of EBL
(NRs. in millions)
Year

Total Deposit

Annual Growth (%)

2015/16

93735.4

12.81%

2016/17

95094.4

1.45%

2017/18

115511.8

22.77%

2018/19

129568.2

10.84%

2019/20

143545.5

9.73%

The above table shows the total deposit of Everest bank limited from fiscal year 2015/16
to 2019/20. Here the table shows the increasing trend. In year 2015/16 the deposit
increased by 12.81% similarly in year 2016/17 the deposit increased by 1.45%which is
less increased in comparison to previous increase. In year 2017/18, deposit increased by
only 22.77% and in year 2018/19 deposit increased by 10.84%. In last 5 years, the
recorded growth reached up to 100.12%.

14

Fixed Deposit to Total Deposit Ratio
Table 2: Fixed Deposit to Total Deposit Ratio
(NRs. in millions)
Year

Fixed Deposit

Total Deposit

Ratio (%)

2015/16

25999

93735.4

27.74

2016/17

36311.5

95094.4

38.18

2017/18

54063.6

115511.8

46.80

2018/19

31452.4

129568.2

24.27

2019/20

31555.2

143545.5

21.98

The above table shows the fixed deposit, total deposit and fixed to total deposit ratio
columns. The ratio is in increasing trend. In year 2015/16 the ratio was 27.74% and
increased to 38.18% in next year. In year 2017/18, ratio increased to 46.80% and decreased
to 24.27% in year 2018/19. And again, the ratio decreased to 21.98% in final year.

Figure 1: Fixed Deposit to Total Deposit Ratio
Fixed Deposit to Total Deposit Ratio
50
45
40
35

Ratio

30

25
20
15
10
5

0
2015/16

2016/17

2017/18

2018/19

2019/20

Year

15

The above figure shows the fixed deposit, total deposit and fixed to total deposit ratio
columns. The ratio is in increasing trend. In year 2015/16 the ratio was 27.74% and
increased to 38.18% in next year. In year 2017/18, ratio increased to 46.80% and decreased
to 24.27% in year 2018/19. And again, the ratio decreased to 21.98% in final year.

Saving Deposit to Total Deposit Ratio
Table 3: Saving Deposit to Total Deposit Ratio
(NRs. in millions)
Year

Saving Deposit

Total Deposit

Ratio (%)

2015/16

38649.6

93735.4

41.23

2016/17

35555.9

95094.4

37.39

2017/18

38539.4

115511.8

33.36

2018/19

40891.2

129568.2

31.55

2019/20

47391.2

143545.5

33.01

The above table shows the saving deposit, total deposit and saving to total deposit ratio.
The ratio shows a fluctuated trend. Initially the ratio was 41.23% but decreased to 37.39%
in year 2016/17 and then slightly decreased to 33.36% in year 2017/18. But again, it
decreased to 31.55% in year 2018/19 and increased to 33.01% in year 2019/20. It
concluded that the saving deposit was more in initial year but less in last year in comparison
to fixed deposit.

16

Figure 2: Saving Deposit to Total Deposit Ratio
Saving Deposit to Total Deposit Ratio
45
40
35

Ratio

30
25
20
15
10
5
0
2015/16

2016/17

2017/18

2018/19

2019/20

F/Y

The figure shows the saving deposit, total deposit and saving to total deposit ratio. The
ratio shows a fluctuated trend. Initially the ratio was 41.23% but decreased to 37.39% in
year 2016/17 and then slightly decreased to 33.36% in year 2017/18. But again, it decreased
to 31.55% in year 2018/19 and increased to 33.01% in year 2019/20. It concluded that the
saving deposit was more in initial year but less in last year in comparison to fixed deposit.

17

Current Deposit to Total Deposit Ratio
Table 4: Current Deposit to Total Deposit Ratio
(NRs. in millions)
Year

Current Deposit

Total Deposit

Ratio (%)

2015/16

8630

93735.4

9.21

2016/17

8867.7

95094.4

9.33

2017/18

9394.1

115511.8

8.13

2018/19

6585.3

129568.2

5.08

2019/20

3654.7

143545.5

2.54

The above table shows the current deposit, total deposit and current to total deposit data.
The ratio showed a fluctuated nature where it increased from 9.21% to 9.33% during first
two years and then showed a minimal decrement to 8% which was again decreased. The
ratio fluctuated from 9.21% to 2.54% within a period of 5 years.

Figure 3: Current Deposit to Total Deposit Ratio

Current Deposit to Total Deposit Ratio
10
9
8
7

Ratio

6
5
4
3
2
1
0
2015/16

2016/17

2017/18

2018/19

2019/20

Year

18

The above figure shows the current deposit, total deposit and current to total deposit data.
The ratio showed a fluctuated nature where it increased from 9.21% to 9.33% during first
two years and then showed a minimal decrement to 8% which was again decreased. The
ratio fluctuated from 9.21% to 2.54% within a period of 5 years.

Margin Deposit to Total Deposit Ratio
Table 5: Margin Deposit to Total Deposit Ratio
(NRs. in millions)
Year

Margin deposit

Total deposit

Ratio (%)

2015/16

873.1

93735.4

0.93

2016/17

1066.7

95094.4

1.12

2017/18

2053.23

115511.8

1.78

2018/19

6381.36

129568.2

4.92

2019/20

7273.77

143545.5

5.06

The table shows the margin deposit, total deposit and margin to total deposit ratio. Here
the ratio is 0.93% in year 2015/16 which increased to 1.12% in year 2016/17 and then
was increased and reached to 5.06% in final year.

Figure 4: Margin Deposit to Total Deposit Ratio
Margin Deposit to Total Deposit Ratio
6
5

Ratio

4
3
2
1
0
2015/16

2016/17

2017/18

2018/19

2019/20

Year

19

The above figure shows the margin deposit, total deposit and margin to total deposit ratio.
Here the ratio is 0.93% in year 2015/16 which increased to 1.12% in year 2016/17 and
then was increased and reached to 5.06% in final year.

Call Deposit to Total Deposit Ratio
Table 6: Call Deposit to Total Deposit Ratio
(NRs. in millions)
Year

Call deposit

Total deposit

Ratio (%)

2015/16

19424.8

93735.4

20.73

2016/17

13143.8

95094.4

13.82

2017/18

11464.2

115511.8

9.92

2018/19

13040.3

129568.2

10.06

2019/20

10431.5

143545.5

7.26

As seen in the mentioned table above, the ratio decreased from 20.73% to 13.82% in first
one year again gradually decreased to 13.82% to 9.92% and finally to 7.26% in remaining
3 years interval respectively.

20

Figure 5 : Call Deposit to Total Deposit Ratio

Call Deposit to total Deposit Ratio
25

20

Ratio

15

10

5

0
2015/16

2016/17

2017/18

2018/19

2019/20

Year

As seen in the mentioned figure above, the ratio decreased from 20.73% to 13.82% in first
one year again gradually decreased to 13.82% to 9.92% and finally to 7.26% in remaining
3 years interval respectively.

Total Loan and Advances of EBL
Table 7: Total loan and advances
(NRs. in millions)

Year

Loan and Advances

Annual Growth (%)

2015/16

68911.5

24.47

2016/17

78284.6

13.6

2017/18

94182.2

19.24

2018/19

105835.6

11.01

2019/20

113956.7

7.12

The above table shows the total loan and advances of Everest Bank Limited from fiscal
year 2015/16 to 2019/20. As mentioned above, there is an increased trend of loan and
21

advances with an annual growth rate of 9.62% in year 2014/15 which peaked to 24.47% in
year 2015/16. Though the loan and shows a fluctuated trend which tend to decrease at last
two years reaching to 19.24% in the year 2017/18. The total loan and advances was
increased to 113956.7 million in the final year which was 68911.5 million in the year
2015/16. In last 5 years, the recorded growth reached up to 117.04%.

Total Loan and Advances to Total Deposit Ratio
Table 8: Total Loan and Advances to Total Deposit Ratio
(NRs. in millions)
Year

Total Loan and

Total Deposit

Ratio (%)

93735.4

73.52

2016/17

68911.5
78284.6

95094.4

82.32

2017/18

94182.2

115511.8

81.53

2018/19

105835.6

129568.2

81.68

2019/20

113956.7

143545.5

79.38

Advances
2015/16

From the above table, it is clear that the total loan and advances to total deposit was
decreased from 78.01% to 66.63% in the year 2015/16 which then increased in the
following two years to 73.52 and 82.32 respectively. The ratio was 79.38% in the year
2019/20. Higher loan and advance to total deposit ratio shows higher risk and higher
turnover

22

Figure 6: Total Loan and Advances to Total Deposit Ratio

Total Loan And Advance to Total Deposit Ratio
84
82
80

Ratio

78
76
74
72
70
68
2015/16

2016/17

2017/18

2018/19

2019/20

Year

From the above Figure, it is clear that the total loan and advances to total deposit was
decreased from 78.01% to 66.63% in the year 2015/16 which then increased in the
following two years to 73.52 and 82.32 respectively. The ratio was 79.38% in the year
2019/20. Higher loan and advance to total deposit ratio shows higher risk and higher
turnover

23

Performing Loan to Total Loan and Advances Ratio
Table 9: Performing Loan to Total Loan and Advance ratio
(NRs. in millions)

Year

Performing Loan

Total Loan

Ratio (%)

2015/16

68647.1

68911.5

99.62

2016/17

78085.7

78284.6

99.75

2017/18

93993.82
105658.4

94182.2

98.00
99.83

2018/19
2019/20

113690.2

105835.6
113956.7

99.76

The table above shows the performing loan to the total deposit ratio. Here the ratio shows
99% in all years which was slightly decreased by 1% in the year 2017/18. More the
performing loan to the total deposit ratio means the loans and deposits has been utilized
more efficiently by bank which is a good sign as well.

24

Non-Performing Loan to Loan and Advances Ratio
Table 10: Non-Performing to Loan and Advances Ratio
(NRs. in millions)

Year

Non-Performing

Total Loan

Ratio (%)

Loan
2015/16

264.4

68911.5

0.38

2016/17

198.9

78284.6

0.25

2017/18
2018/19
2019/20

188.4
177.2
266.5

94182.2
105835.6
113956.7

0.20
0.16
0.23

As shown in the above table, there is a decreasing trend of non-performing loss to the total
loan and advance ratio. The ratio was high at 2015/16 with 0.38% which gradually
decreased and reached to 0.23% in the end of 5 years’ time period. Increase in the amount
of non-performing assets or loans means mismanagement of loan and deposit of individuals
and households.

25

Figure 7 : Non-Performing Loan to Loan and Advances Ratio
Non-Performing Loan to Loan and Advance Ratio
0.4
0.35
0.3

Ratio

0.25
0.2
0.15
0.1
0.05
0
2015/16

2016/17

2017/18

2018/19

2019/20

Year

As shown in the above Figure, there is a decreasing trend of non-performing loss to the
total loan and advance ratio. The ratio was high at 2015/16 with 0.38% which gradually
decreased and reached to 0.23% in the end of 5 years’ time period. Increase in the amount
of non-performing assets or loans means mismanagement of loan and deposit of individuals
and households.

26

Secured Loan to Loan and Advance Ratio
Table 11: Secured Loan to Loan and Advance Ratio
(NRs. in millions)
Year

Secured Loan

Total Loan

Ratio (%)

2015/16

68911.5

68911.5

100

2016/17
2017/18
2018/19
2019/20

78284.6
94182.2
105835.6
113956.7

78284.6
94182.2
105835.6
113956.7

100
100
100
100

It can be seen from the above table in case of security wise loan that the secured loan is all
equal to the total loan and advances which means all the loan are utilized securely and there
is no any unsecured loan within the 5 years.

27

CHAPTER 3
SUMMARY AND CONCLUSION
3.1 Summary
The present study has been undertaken to examine and evaluate the deposit position of
Everest Bank Limited. While studying about the study of deposit analysis the descriptive
research methodology has been used to conduct a research. The report is based on five
years data that is from F/Y 2015/16 to F/Y 2019/20 which have been examined for the
purpose of study. Data that has presented is all from the secondary sources which are in
annual reports. The data obtained through secondary sources were represented in suitable
tables, analyzed through using various ratios, interpreted and finally deduced to conclusion.
The study employed financial tool like ratio analysis and calculated various ratios of
deposit and loan. From the above analysis, EBL has highest increasing trend of total
deposit. From fixed deposit, the bank has collected highest deposit which means the bank
is able to satisfy their fixed deposit customers more than other deposit. Similarly, as per
the increasing trend of deposit, the ratio of loan and advances are also increasing in these
5 years. There is also gradual increasing ratio for total loan and advances to the total deposit
ratio which means bank has been effectively utilizing the money in for the purpose of the
loan as well which is indeed a good aspect for their customers.

3.2 Conclusion
After conducting a thorough study of deposit analysis of Everest Bank Limited from
F/Y 2015/16 to F/Y 2019/20 we can conclude that the total deposit trend of EBL is
increasing which indicates that EBL has better performance able to satisfy their customers
through providing higher quality and newer service to them. From fixed deposit, bank has
collected highest deposit which means EBL is able to satisfy their fixed deposit customers
more than other deposit. From margin deposit bank has collect lowest deposit which means
banks is properly not able to fulfill the margin depositors want. So, this bank needs to
develop effective marketing to collect margin deposit. The bank is also able to invest on
28

loan and advances as the annual growth crossed 100% within 5 years showing a positive
increment. Similarly, the bank is able to satisfy their customers through the loan and
advances as its ratio to total deposit is also increasing which is good for the bank. Moreover,
the decreased trend of non-performing loans indicates the well utilization of the loans and
advances till the date. Everest Bank Limited seems much more concerned regarding this
issue as well. Also, the total amount of loan and advances is equal to the secured loan which
keeps the bank at the safe side. Bank did not perform any unsecured loan within these 5
years’ time period.

29

Reference

Joshi, P. R. (2001), Research Methodology. Kathmandu: Buddha Academic Publishers and
Distributors Pvt Ltd.
B. Krishnaswamy, “Deposit Mobilization Why and How?” Indian Banking Today and
Tomorrow, November, 1983, p.19.
Adhikari, D.R &Pandey (2001). Research Methodology. Kathmandu :Asmita Publication
Bhattarai .R. (2004). Investment: Theory and Practices, Kathmandu: Buddha Academic
Publication.
Everest Bank. (n.d.). Retrieved from http://www.everestbanklimited.com
Ghimire, S.R. (2072). Fundamental of Financial Management. Kathmandu: K.P.Pustak
Gurung, R. (2014). Financial Institutions &Markets. Kathmandu: Buddha publication
http://en.wikipedia.org
Nepal Rastra Bank. (n.d.). Retrieved from http://www.nrb.org.np
Thapa .K. (2073), Foundation of Financial Markets and Institutions. Kathmandu: Januka
book house.

30

Appendix

Fixed Deposit to Total Deposit Ratio:
The ratio measures the percentage of fixed deposit to total deposit. It can be calculated as:
Ratio = Fixed deposit
Total deposit
Saving Deposit to Total Deposit Ratio:
This ratio measures percentage of saving deposit to total deposit. It can be calculated as:
Ratio = Saving deposit
Total deposit
Current Deposit to Total Deposit Ratio:
It measures percentage of current deposit to total deposit. It can be calculated as:
Ratio = Current deposit
Total deposit
Margin Deposit to Total Deposit Ratio:
It measures the ratio between margin deposit and total deposit. It can be calculated as:
Ratio = Margin deposit
Total deposit
Call Deposit to Total Deposit Ratio:
It measures the ratio between call deposit and total deposit. It can be calculated as:
Ratio= Call deposit
Total deposit

31

Total loan and Advances to Total Deposit Ratio:
It measures the ratio total loan and advances and total deposit. It can be calculated as:
Ratio= Total Loan Advances
Total deposit

Performing Loan to Total Loan and Advances:
It measures the ratio performing loan and total loan and advances. It can be calculated as:
Ratio= Performing Loan
Total Loan and Advances
Non- Performing Loan to Total Loan and Advances:
It measures the ratio non-performing loan and total loan and advances. It can be
calculated as:
Ratio= Non-Performing Loan
Total Loan and Advances
Secured Loan:
It measures the ratio secured loan and total loan and advances. It can be calculated as:
Ratio= Secured Loan
Total Loan and Advances

32

Name:
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