A STUDY ON SAVING DEPOSIT MOBILIZATION OF

EVERVEST BANK LIMITED

A Project Work Report

Submitted By:
Anisha Thapa Chhetry
Symbol No:704610001
T.U.Regd. No.:7-2-461-118-2019
Kathmandu BernHardt College
Kathmandu

Submitted To:
Faculty of management
Tribhuvan University
Kathmandu, Nepal

In partial Fulfillment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Kathmandu, Nepal
July, 2024
 DECLARTION

I hereby declare that the project work entitled “A STUDY ON SAVING DEPOSIT
MOBILIZATION OF EVERVEST BANK LIMITED” submitted to Faculty of
Management, Tribhuvan University, is an original piece of work under the supervision
of Mr. Rameshower Aryal faculty member of Kathmandu BernHardt College,
Kathmandu, Nepal and is submitted in the partial fulfillment of the requirements for the
degree of Bachelors of Business Studies (BBS). This Project work has not been
submitted to any other university or institution for the award of any degree or diploma.

.……………….

Anisha Thapa Chhetry

Kathmandu BernHardt College
July, 2024

ii
 SUPERVISOR’s RECOMMENDATION

The project work entitled “A STUDY ON SAVING DEPOSIT MOBILIZATION OF

EVERVEST BANK LIMITED” submitted by Anisha Thapa Chhetry of Kathmandu
Bernhardt College, Kathmandu 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 requirement for the degree of bachelor of business studies
(BBS). I, therefore, recommend the project report for evaluation.

………………
Rameshower Aryal

Kathmandu BernHart College

July, 2024

iii
 ENDORSEMENT

We hereby endorse the project work report entitled “A STUDY ON SAVING

DEPOSIT MOBILIZATION OF EVERVEST BANK LIMITED” submitted by Anisha
Thapa Chettry of Kathmandu Bernhardt College, Kathmandu in partial fulfillment of
the requirements for award of the Bachelor of Business Studies (BBS) for external
evaluation.

………………………… ……………………….

………………………….. Mr. Sahadev sigdel

Chairman, Research Committee Campus Chief

Kathmandu Bernhardt College Kathmandu Bernhardt college

July, 2024 July, 2024

iv
 ACKNOWLEDGEMENT

It is my great opportunity to complete this report under the supervision of MR.

Rameshower Aryal and for Sahadev Sigdel for helping me in this report., In-charge of
Research, for generous encouragements and undertaking of the supervision of my entire
research work. This form of the report is the outcome of his continuous encouragement,
helpful suggestions and comments. I would like to express thanks to Kathmandu
BernHardt College, Kathmandu for providing me the opportunity to conduct the
research. This report has helped me enhance my knowledge on “A STUDY ON
SAVING DEPOSIT MOBILIZATION OF EVERVEST BANK LIMITED”. I would
also like to send my gratitude to my classmates who helped me by providing valuable
insights that has helped to shape this report. I would like to thank everyone who was
involved in filling of the questionnaires that provided data for my report. Their valuable
opinion and time is greatly appreciated. At last, I would like to express my special
gratitude towards BANK who provided me all the essential information required to do
this report successfully.

………………………

Anisha Thapa Chhetry.

Kathmandu BernHardt college

July, 2024

v
 TABLE OF CONTENTS
Declartion ..................................................................................................................... II
Supervisor’s recommendation ..................................................................................... III
Endorsement ................................................................................................................ IV
Acknowledgement ......................................................................................................... V
Table of contents ......................................................................................................... VI
List of tables ................................................................................................................ VII
List of figures ............................................................................................................ VIII
ABBREVIATIONS ............................................................................................................... IX
CHAPTER I ................................................................................................................. 1
INTRODUCTION........................................................................................................ 1
1.1 BACKGROUND OF THE STUDY ................................................................................ 1
1.2 PROFILE OF EVEREST BANK LIMITED ...................................................................... 3
1.3 PROBLEM STATEMENT ........................................................................................... 4
1.4 OBJECTIVE OF THE STUDY ..................................................................................... 4
1.5 RATIONALE OF THE STUDY .................................................................................... 4
1.6 REVIEW OF LITERATURE ........................................................................................ 5
1.7 RESEARCH METHOD ............................................................................................... 7
1.7.2 TYPES OF DATA .................................................................................................. 7
1.7.3 METHOD OF DATA ANALYSIS ............................................................................. 7
1.8 LIMITATION OF STUDY ........................................................................................... 8
CHAPTER 2 ............................................................................................................... 10
REULTS AND ANALYSIS ....................................................................................... 10
2.1 RESULT................................................................................................................ 10
2.1.1 TREND OF NON-INTEREST-BEARING DEPOSIT OF EBL ....................................... 11
2.1.2 TREND OF INTEREST-BEARING DEPOSIT OF EBL ............................................... 12
2.1.3 RATIO BETWEEN NON-INTEREST BEARING AND INTEREST-BEARING DEPOSITS OF
EBL .......................................................................................................................... 15
2.1.4 TREND OF SAVING DEPOSIT OF EBL ................................................................. 16
Figure 6: loan and advance of EBL ..................................................................... 20
Figure 8: Return on asset ..................................................................................... 24
2.2 MAJOR FINDINGS OF THE STUDY .......................................................................... 25
CHAPTER 3 ............................................................................................................... 27
SUMMARY AND CONCLUSION .......................................................................... 27
3.1. SUMMARY .......................................................................................................... 28
3.2. CONCLUSION ...................................................................................................... 29
REFERENCE ............................................................................................................. 30

vi
 LIST OF TABLES

Table 1: Summary of deposit collected by EBL 10

Table 2: Trend of Non- interest-bearing deposit of EBL 11
Table 3: Interest bearing deposit of EBL 13
Table 4:Trend of interest-bearing deposit of EBL 14
Table 5: Ratio between non-interest bearing and interest-bearing deposits of EBL 15
Table 6: Saving deposit of EBL 17
Table 7:Loans and advances of EBL 18
Table 8: Deposit and loan & advances of EBL 20
Table 9: Regression result 21
Table 10:Total assets and net profit of EBL 23
Table 11:ROA of EBL 23

vii
 LIST OF FIGURES

Figure 1: Trend of non-interest-bearing deposit 12

Figure 2:Interest bearing deposit of EBL 14
Figure 3: Trend of interest-bearing deposit 15
Figure 4: Ratio of non-interest bearing to interest bearing deposit 16
Figure 5: Trend of saving deposit of EBL 18
Figure 6: loan and advance of EBL 20
Figure 7:Deposit and loan & advance 22
Figure 8: Return on asset 24

viii
ABBREVIATIONS

ATM Automated teller machine

BS Bikramsambat

BBS Bachelor of Business Studies

EBL Everest Bank Limited

F/Y Fiscal year

LDR Loan Deposit Ratio

LTD Limited

PIN Personal Identification Number

ROA Return on Assets

T.U. Tribhuvan University

ix
 1

CHAPTER I

INTRODUCTION

1.1 Background of the study

Generally, the term bank denotes commercial bank. Bank is a business which holds
money of its clients, lends money at interest and trades in money. It is a financial
intermediary between the investors and borrowers. It provides certain rate of interest to
the deposit holders and charges certain interest rate with borrowers. The interest
charged to borrower is more than the interest paid by the bank to the deposit holders,
which is the main source of income of the bank. Transaction between the bank and its
clients are known as banking transactions. Bank provides different services to its
clients, for example, business firm can deposit money into bank, can make payment to
the creditors through bank, can receive payment from debtors through bank etc.

A bank is a financial institution which collects idle money temporarily from the public
and lends to others people as per need. There are several types of banks including retail,
commercial, and investment banks. In most countries, banks are regulated by the
national government or central bank. In addition, banks are essential to the economy
because they distribute capital in a way that promotes economic growth. They
contribute to the smooth operation of the financial system by facilitating wire transfers,
electronic funds transfers, and other financial operations. To meet a range of financial
demands, banks may also provide wealth management services, insurance, and
investment products. (kent, R.P,2003). Banking institutions are responsible for
competently channeling local deposits, facilitating investment finance, managing a
payment system, and speeding working capital management (Gaur & Mohapatra,
2020).

According to Ratnovski (2013), banks and financial institutions facilitate the transfer
of funds between surplus and deficit units, fostering economic growth and
development.
 2

When deposit holders’ deposits money into the bank, the bank makes promises for the
return of such deposit i.e. the deposit accepted by the bank is IOU for the bank.
Generally, a bank accepts deposits in three different accounts;

Current Account: Deposit-holders can deposit any amount and can withdraw the
deposited amount at any time if deposit holders deposit their money in current account.
Certain amount is to be kept as minimum balance as per the bank’s rule. Generally, no
interest is allowed by the bank on the balance in current account, since the bank cannot
invest such deposit.

Saving Account: Deposit-holder can deposit any amount at any time but can withdraw
certain amount at certain period, if a person deposits his money in saving account. On
such deposit bank provides nominal interest.

Fixed Deposit Account: Depositor can deposit fixed sum of money for fixed period in
fixed deposit account. Bank provides a higher rate of interest on fixed deposit, since it
can invest the amount for certain, fixed period which generates income to the bank. The
deposit-holder does not allow to return back (withdraw) his deposit before expire of the
fixed period.

Deposits are monies that customers deposit in a bank for the purpose of safety and
interest income, on which the bank pays or receives interest in accordance with its
nature. For the purposes stated, the bank requires appropriate funding. Deposits are
critical to the growth and success of any commercial bank. Thus, the bank's deposit
policy must be proper in order to accelerate the expansion of the bank. The policy varies
depending on whether the bank serves a selective or large clientele. However, the bank
should recruit new depositors and maintain the decline during recessions. Thus, the
bank must take various corrective efforts to attract more deposits based on the demand
and capacity of the bank to mobilize them. A commercial bank buys money from the
deposit holders and sells it to the borrowers. Deposit collected from the deposit holders
is the fund of commercial bank to lend it to the borrowers. How much deposit a bank
collects determines how much it can lend.

Deposits are of different nature and types. They can be classified in accordance with
different basis. They are: Time deposit, Interest Bearing, Noninterest bearing, Public
Deposit, Private Deposit, Inter-Bank Deposit.
 3

Savings deposits are those that the bank collects from small depositors or depositors
with low-income levels. People who work in low- to middle-income occupations, such
as farmers and small shops, are typically included. Deposit their salary in a savings
account in little amounts at a time. They can also take more than the permitted amount
from the bank at any time by utilizing cheques or an ATM. However, the bank normally
provides minimal interest to saving depositors based on the statutory rate of interest.

1.2 Profile of everest bank limited

Everest Bank Limited is the Commercial Bank of Nepal which is joint venture of
Punjab National Bank, India which holds 20% equity shares of Bank. It is the first
Nepalese Bank which has Representative Office in India. The bank has a wide network
of 127 branches,162 ATM Counters, 32 Revenue collection counters and 3 Extension
counters and many correspondents across the globe. Everest Bank Limited is a
prominent commercial bank in Nepal that has been serving the financial needs of the
country since its establishment in 1994. Recognized for its commitment to providing
innovative and customer-friend banking solutions, Everest Bank has played a crucial
role in the economic development of Nepal. The bank offers a wide range of services,
including savings and current accounts, loans, and various other financial products to
cater to the with a network of branches and ATMs across the nation, Everest Bank has
worked towards enhancing financial inclusion and accessibility for individuals and
businesses. Known for its dedication to corporate social responsibility, the bank has
been involved in various community development initiatives. For the most current and
detailed information about Everest Bank Limited, it is advisable to visit the official
website of Everest Bank Limited, established in 1994, has grown to become one of the
leading banks in Nepal, contributing significantly to the country banking sector.
Committed to excellence and customer satisfaction, the bank offers a comprehensive
range of financial services tailored to meet the evolving needs of its diverse clientele.
These services encompass personal and corporate banking, including savings and
current accounts, fixed deposits, various loan products, and digital banking solutions.
Everest Bank has strategically expanded its presence with a network of branches and
ATMs across urban and rural areas, promoting financial accessibility and inclusivity.
The bank places a strong emphasis on adopting modern banking technologies to
enhance efficiency and provide seamless services to its customers.
 4

1.3 Problem statement

Deposit Mobilization refers to a financial institution's collecting of cash or funds from
the public through various accounts, including current, savings, fixed, and recurring.
Saving deposit mobilization is a banking technique aimed at encouraging customer
loyalty. Depositing more cash in the bank might lead to increased loan disbursement
and revenue generation. Commercial banks' primary duty is to accept deposits and
mobilize the productive sector. Saving deposit mobilization is a key innovation in
Nepalese banking activity. Capital play important role in the banking sector. It is a
requisite from the promotional stage up to the end of a banking sector. No banking
transaction can be operated without capital. so, capital is as life blood of banking sector.
The capital can be collects from the various sources such as shares, debenture, public,
deposit, bank loan etc. generally there are various source of accumulating capital
internal and external.

The research problem are as follows:

i. How Everest bank mobilizes its deposit?

ii. What is the performance of Everest bank limited in terms of Return on Assets and
loan to deposit ratio?

1.4 Objective of the study

The major objective of the study was to analyze the deposit mobilization of EBL. The
strength of the commercial bank depends on deposit collection and mobilization
capacity of the bank. Following are the specific objectives of the study:
i. To identify the trend and growth in deposit mobilization of Everest Bank
Limited.
ii. To examine and analysis relationship between deposits and loans and
advance of the Everest Bank Limited.

1.5 Rationale of the study

Optimum utilization of fund makes better impact on the economy of the nation. EBL
is one of the governments owned national bank. So, it has been chosen for the study
with below limitations:
• Importance to shareholders.

• Importance to the management bodies of the bank for the evaluation of the
performance of bank.
 5

• Importance to "outsiders" which are mainly the customers, financing agencies,

stock exchanges etc.

• Importance to the government bodies or the policy makers such as the central bank

• Interested outside parties such as- investors, customers (depositors as well as credit
takers), and competitors, personnel of the banks, stockbrokers, dealers, and market
makers. So, this study helps to identify its unseen strength and weakness regarding
financial as well as credit administration.

1.6 Review of literature

Nepal Bank Limited is Nepal's first modern bank. It was created in 1937 A.D. and is
considered a milestone in the country's contemporary banking history. Since its
inception, it has provided the following services to its customers: accepting deposits,
making loans, providing customer-related services such as issuing bills of exchange,
investing in government bonds and securities, performing agency functions, and acting
as a banker to the government. The Encyclopedia America; 1985 A.D. defines “A bank
is a business organization that receives and holds deposits of funds from others make
loan or extents credits and transfer funds by written order of deposits”. In the Nepalese
context, Commercial Bank Act, 1974 A.D. defines “A commercial bank is one which
exchanges money, deposits money, accepts deposits, grants loans and performs
commercial banking functions”. Commercial banks are those banks that pool together
the savings of the community and arrange for their productive use. They supply the
financial needs of modern business by various means. They accept deposits from the
public on the condition that they are repayable on demand of short notice. Commercial
banks are restricted to invest their funds in corporate securities. Their business is
confined to financing the short term needs of trade and industry such as working capital
financing. They cannot finance in fixed assets. They grant loans in the form of cash
credits and overdrafts. Apart from financing they also render services like collection of
bills and cheque, safe keeping of valuables, financial advertising etc. to their customers.

Banks are profitable financial entities that provide banking and other financial services
to their customers by collecting deposits from depositors and making loans to borrowers
(Islam et.al.,2019). Thus, deposits become the most essential financial resource for
commercial banks in meeting their clients' financial needs, necessitating the
mobilization and accumulation of sufficient deposit amounts (Namazi & Salehi, 2010).
 6

As a result, customer deposits serve as the primary source of financial resources for
banking institutions. Every commercial bank's ongoing operations rely heavily on
consumer deposits (Namazi & Salehi, 2010). Deposit mobilization is the process by
which financial institutions move cash from surplus to deficit units in order to provide
more chances for productive investment (Banson et.al.,2012). Deposit mobilization is
one of the most important functions of the banking industry because it provides a
critical source of working capital for the bank. The amount of deposits mobilized from
the public through current, savings, fixed, and recurring accounts, as well as other
specialized schemes, is critical to the bank's successful operation (Viswanadham
et.al.,2015). The government has also directed banks on occasion to make all feasible
efforts to mobilize additional deposits, which can only speed up the pace of lending
activities by banks from surplus units to deficit units for the development of the
economy (Eriemo 2014). A bank's lending capability is heavily reliant on its ability to
attract deposits, which are the primary source of bank profit and growth (Devinaga R
(2010). However, deposit mobilization should encourage clients to deposit cash in the
bank or bring in new customers to open an account (Tuyishime R, Memba F, Mbera Z
,2015). To be competitive in the banking sector, banks must have a substantial
proportion of the deposit market.

i. Profitability (ROA)
Osei (2016) found that profitability is a key element in rural banks' deposit
mobilization. Bhalla VK (2006) defined Return on Asset (ROA) as a ratio that measures
a company's efficiency in leveraging its assets to create profit. It demonstrates
management's capacity to maximize the bank's financial and real investment resources
to generate profits (Hassan MK, Bashir AHM (2003). As a result, the more efficient
company will earn more profit from a given level of total assets than its less efficient
competitor (Bhalla VK ,2006). Thus, increased profits are regarded as a favorable
indicator or soundness of the bank, making it simpler for such institutions to attract
further deposits (Finger MH, Hesse MH ,2009).

ii. Loan-to-deposit ratio (Bank liquidity)

The loan-to-deposit ratio (LTD) is a measure of bank liquidity that indicates the
proportion of client deposits that have been converted into loans (Yitayaw MK ,2021).
It refers to a bank's ability to carry out its commitments at any moment, including
repaying customer deposits or making a payment on the client's request (Vodova PK
 7

,2016). The higher this ratio, the less liquid the bank becomes, resulting in a decrease
in client deposits due to the bank's limited ability to refund depositors. When a bank
fails to pay its depositors, it risks liquidity risk, which discourages other depositors from
depositing with that bank (Muluken D ,2017).

1.7 Research method

Research method is simply Refers to the process that is used to collect information and
data, which helps to collect reliable data and information from various sources in order
to prepare report writing.
1.7.1 Research design
This study relies on secondary data. Some statistical methods, such as trend line, bar
diagram, and pie chart, have been used to assess data facts. Basically, the proposed
study is based on two types of research designs: descriptive and analytical. Trend of
deposit collection, trend of loan and advances of Everest bank limited are analyzed.
Deposit mobilization of Everest bank limited is analyzed by using financial analysis of
the Return on assets (ROA) and loan to deposit ratio (bank liquidity).
i. To meet the study's objectives, both descriptive and analytical research
designs were used.

1.7.2 Types of Data

Secondary data has been employed in order to analyze the relationship between deposit
collection and mobilization of collected deposit as loan and advances to customers.
Annual reports of Everest bank limited from the fiscal year 2013/14 to 2022/23 are
collected from online sources. Unstructured interviews were carried out with the branch
managers of Everest bank limited located at Kathmandu valley.

1.7.3 Method of Data Analysis

To achieve the objectives of the study various statistical tools have been used. The
analysis of the study is done according to the pattern of data available and to make the
analysis more effective, convenience, reliable and authentic. The different calculated
results obtained through statistical tools are tabulated under different headings. Then
they are compared with each other to interpret the results.
 8

1.7.4 Financial tools

• Return on Assets

The term “return on assets” (ROA) refers to a financial ratio that indicates how
profitable a company is in relation to its total assets. Corporate management,
analysts, and investors can use ROA to determine how efficiently a company uses
its assets to generate a profit. The ROA metric is commonly expressed as a
percentage using a company’s net income and average assets. A higher ROA means
a company is more efficient and productive at managing its balance sheet to
generate profits, while a lower ROA indicates there is room for improvement. ROA
is calculated by dividing a firm's net income by the average of its total assets. It is
then expressed as a percentage. Net profit can be found at the bottom of a company's
income statement, and assets are found on its balance sheet. As a formula, it’s
expressed as
Return on Assets= Net income / Total assets.
A ROA that rises over time indicates the company is doing well at increasing its
profits with each investment dollar it spends. A ROA of over 5% is generally
considered good and over 20% excellent.
• Loan-to-deposit ratio (Bank liquidity)
The loan-to-deposit ratio (LDR) helps assess a bank's liquidity by comparing its
total loans to its total deposits. This provides insight into how much risk a bank has
taken on and if it would be able to meet its liquidity requirements (pay depositors)
in a market crunch. Too high of an LDR indicates a bank may have difficulty
meeting its obligations while too low of an LDR would indicate a bank is not using
its deposits efficiently. Typically, the ideal loan-to-deposit ratio is 80% to 90%. A
loan-to-deposit ratio of 100% means a bank loaned one dollar to customers for every
dollar received in deposits it received. It also means a bank will not have significant
reserves available for expected or unexpected contingencies. As its formula
LDR = Total loans & advances / Total deposits.

1.8 Limitation of study

i. The study only covers data from 2013/14 to 2022/23.

ii. It relies on the accuracy of the bank's data.

 9

iii. External factors like policy changes or economic shifts are not considered.

iv.It doesn't explore reasons behind customer behavior.

v.There is no comparison with other banks.

1.9 Report Structure

In this part whatever work has been done is listed like whatever topics we have written
down are mentioned like we have wrote about background of the study, profile of the
organization, statement of problems, objectives of the study, significance of the study,
research methodology, review of literature, limitation of the study, organization of the
study etc. The whole study has been categorized into three major chapters which are as
follows:
CHAPTER I : INTRODUCTION
This chapter deals with background of the study, statement of problem, objectives of
the study, significance of the study, research methodology, review of literature,
limitations of the study .
CHAPTER II : RESULTS AND ANALYSIS
This is the heart of the study in which all the relevant collected data are analyzed and
interpreted. Mainly different financial and statistical tools are used for the analysis
purpose.
CHAPTER III: SUMMARY AND CONCLUSION
In this chapter, discussion for summary of the whole study and conclusion will be
incorporated according to findings of the data analyzed in previous chapter. Some
implication for suggestion on fact of research finding is also mention.

At the end of this report, BIBLIOGRAPHY consist references sources information for
details calculation table are presented to verify the analysis of information to complete
the research report.
 10

CHAPTER 2

REULTS AND ANALYSIS

2.1 Result

The report mainly focuses firm with its profitability and liquidity. These are important
tools used to measure financial performance of an entity. In the Report, Profitability
ratios are used to determine efficiency and performance. Profitability ratio are two
types: margins and return. Only relevant return type is used in our report. It shows
overall efficiency of firm in generating returns for its shareholders. It provides
stakeholder a measure to judge a company’s ability to make profits and be considered
a worthy investment. Liquidity ratio is used to measure ability of bank to meet its short-
term obligations. However, Higher ratio indicates idle fund with the bank and
inefficiency of its utilization. It hurts profitability and financial performance of the
bank. Turnover ratio is used as an indicator of the efficiency with which the bank is
using its assets to generate revenue. The first objective of the study was to analyze the
trend and growth in deposit collection of Everest Bank Limited. Everest bank limited
collects the deposit from the customers among four different products namely current
deposit which in non-interest-bearing deposit, saving deposit, term deposit which is
fixed deposit and call deposit. Deposits collected by Everest bank limited is
summarized in table 2.

Table 1: Summary of deposit collected by EBL

(Amount in NPR)
F.Y. Non-interest Saving deposit Fixed deposit Call Deposit
Bearing
2018/19
9,49,28,09,015 40,89,12,58,109 64,45,50,67,576 14,72,90,18,195
2019/20
11,12,17,83,66 47,39,12,79,466 72,87,33,79,979 12,15,90,32,071
8
2020/21
12,94,97,25,56 58,71,03,84,728 68,72,30,75,673 19,83,70,70,979
4
2021/22 12,76,42,07,28 51,66,87,97,261 88,29,66,21,306
3 20,00,95,59,100
 11

2022/23
14,80,99,57,29 56,30,21,77,546 1,10,94,18,32,9 15,95,38,39,274
1 55
Source: EBL Annual reports.

Table 1 revealed the deposits collected by EBL in different accounts. The EBL collects
deposit in two categories, the first category of deposit collected by EBL is non-interest-
bearing deposit and the second category of deposit collected by EBL is interest bearing
deposit which includes saving deposit, fixed deposit and call deposits.

2.1.1 Trend of non-interest-bearing deposit of EBL

Non-interest-bearing deposit of a commercial bank is also known as current deposit. In
current deposit commercial bank does not allow any interest on such deposit. There is
no any limit of deposit and withdrawal of money by the depositors. The amount of
money collected by EBL in current deposit during the period between 2018/19 to
2022/23 is presented in table 2.

Table 2: Trend of Non- interest-bearing deposit of EBL

(Amount in NPR)
year Non-interest Bearing Increase/ decrease %increase/
deposit Decrease
2018/19 9492809015.00 98682916.00 0.011 1.05

2019/20 11121783668.00 1628974653.00 0.172 17.16

2020/21 12949725564.00 1827941896.00 0.164 16.44

2021/22 12764207283.00 -185518281.00 -0.014 -1.43

2022/23 14809957291.00 2045750008.00 0.160 16.03

Mean 12,22,76,96,564.20

1,79,88,82,616
S.D.
C.V. 14.71%

Source: EBL Annual reports.

Table no. 2 shows the trend of non-interest-bearing deposit of EBL are 1.05 percent,
17.16 percent, 16.44 percent, -1.43 percent and 16.03 percent over the study period in
2018/19 to 2022/23 respectively which clearly indicates that the trend of non-interest-
bearing deposit of EBL is in fluctuating trend. The researcher has found the trend of
 12

non-interest-bearing ratio is in fluctuating trend which lies between 17.16 percent and
-1.43 percent. The mean and standard deviation of the trend of non-interest-bearing
deposit are 12,22,76,96,564.20 and 1,79,88,82,616 respectively which indicates the
non-interest-bearing deposit is in fluctuating trend.

Trend of non- interest bearing deposit

20.00%
Non interest bearing deposit

15.00%

10.00%

5.00%

0.00%
2018/19 2019/20 2020/21 2021/22 2022/23

-5.00%
fiscal year

Trend of non- interest bearing deposit

Figure 1: Trend of non-interest-bearing deposit

Figure no. 1 shows the trend of non-interest-bearing deposit of EBL are 1.05 percent,
17.16 percent, 16.44 percent, -1.43 percent and 16.03 percent over the study period in
2018/19 to 2022/23 respectively which clearly indicates that the trend of non-interest-
bearing deposit of EBL is in fluctuating trend. The researcher has found the trend of
non-interest-bearing ratio is in fluctuating trend which lies between 17.16 percent and
-1.43 percent. The mean and standard deviation of the trend of non-interest-bearing
deposit are 12,22,76,96,564.20 and 1,79,88,82,616 respectively which indicates the
non-interest-bearing deposit is in fluctuating trend.

2.1.2 Trend of interest-bearing deposit of EBL

The interest-bearing deposit of EBL is divided into three categories as: saving deposit,
fixed deposit and call deposit. Table 4 displays amount of deposit collected by EBL
under saving deposit, fixed deposit and call deposit.
 13

Table 3: Interest bearing deposit of EBL

(Amount in NPR)

Year Saving Fixed fixed Call Deposit Total deposit

deposit
64,45,50,67,576 14,72,90,18,195 1,20,07,53,43,880
2018/ 40,89,12,58,
19 109
72,87,33,79,979 12,15,90,32,071 1,32,42,36,91,516
2019/ 47,39,12,79,
20 466
68,72,30,75,673 19,83,70,70,979 1,47,27,05,31,380
2020/ 58,71,03,84,
21 728
88,29,66,21,306 20,00,95,59,100 1,59,97,49,77,667
2021/ 51,66,87,97,
22 261
15,95,38,39,274 1,83,19,78,49,775
2022/ 56,30,21,77, 1,10,94,18,32,95
23 546 5
mean
50,99,27,79,4 81,05,79,95,497.8 16,53,77,03,923.80 1,48,58,84,78,843.60
22 0

S.D.
6,37,52,59,60 16,97,19,58,276 3,02,40,57,225.61 21,92,48,58,549.32
2.35

C.V. 12.5% 20.93% 18.29% 14.76%

Source: EBL Annual reports.

 14

Interest bearing deposit of EBL

200,000,000,000.00
180,000,000,000.00
160,000,000,000.00
140,000,000,000.00
120,000,000,000.00
deposits

100,000,000,000.00
80,000,000,000.00
60,000,000,000.00
40,000,000,000.00
20,000,000,000.00
-
2018/19 2019/20 2020/21 2021/22 2022/23
fiscal years

fixed deposit saving deposit call deposit total deposit

Figure 2:Interest bearing deposit of EBL

Table 4:Trend of interest-bearing deposit of EBL

Year Interest bearing deposit Increase/ %increase/

decrease decrease
2018/19 1200753,43,880.00 139577,64,057.00 0.13 13

2019/20 1324236,91,516.00 123483,47,636.00 0.10 10

2020/21 1472705,31,380.00 148468,39,864.00 0.11 11

2021/22 1599749,77,667.00 127044,46,287.00 0.09 9

2022/23 1831978,49,775.00 232228,72,108.00 0.15 15

1,48,58,84,78,843.60
Mean
S.D. 21,92,48,58,549.32

C.V. 14.76%

Source: EBL Annual reports.

Table 4 shows that the trend interest deposit of EBL are 13 percent, 10 percent, 11
percent, 9 percent, 15 percent over the study period in 2018/19 to 2022/23. The
researcher has found that the trend of interest-bearing deposit of EBL is in increasing
order. The highest and lowest interest-bearing-deposit ratio are 15 percent and 9 percent
in 2022/23 and 2021/22 respectively. The researcher has found that trend of interest-
bearing-deposit ratio lies in between 9 percent and 15 percent. The mean and standard
 15

are 1,48,58,84,78,843.6 and 21,92,48,58,549.32 respectively which indicates in

fluctuating trends.

Trend of interest bearing deposit

200,000,000,000.00
180,000,000,000.00
160,000,000,000.00
140,000,000,000.00
120,000,000,000.00
100,000,000,000.00
80,000,000,000.00
60,000,000,000.00
40,000,000,000.00
20,000,000,000.00
-
2018/19 2019/20 2020/21 2021/22 2022/23
fiscal year

Trend of interest bearing deposit

Figure 3: Trend of interest-bearing deposit

2.1.3 Ratio between non-interest bearing and interest-bearing deposits of EBL

Non-interest-bearing deposits are deposited by the customers for safety purpose.
Depositors can withdraw their current deposits without any prior information to the
bank. Such deposit determines the customers loyalty towards the bank. Although the
period of withdrawal of such deposit is unknown it helps the bank to maintain the
necessary liquidity in the bank. Table 4 is the summary of non-interest-bearing deposit
and interest-bearing deposits collected by EBL during the period of 2013/14 to 2022/23.

Table 5: Ratio between non-interest bearing and interest-bearing deposits of EBL

Years Non-interest Bearing Interest bearing deposit Ratio

(in %)
2018/19 9,49,28,09,015 1,20,07,53,43,880.00 7.9

2019/20 11,12,17,83,668 13,24,23,691,516.00 8

2020/21 12,94,97,25,564 1,47,27,05,31,380.00 9

2021/22 12,76,42,07,283 1,59,97,49,77,667.00 8

2022/23 14,80,99,57,291 1,83,19,78,49,775.00 8

Mean 12,22,76,96,564.20 1,48,58,84,78,843.60 8.18

 16

1,79,88,82,616 21,92,48,58,549.32 8%
S.D.
C.V. 14.71% 14.76% 0.09%

Source: EBL Annual reports.

Table 5 shows the ratio between non-interest-bearing deposit and interest-bearing
deposit of EBL are 7.9 percent, 8 percent, 9 percent, 8 percent, 8 percent over the study
period in 2018/19 to 2022/23 respectively. The highest and lowest ratio are 9 percent
and 7.9 percent in 2020/21 and 2018/19 respectively. The researcher found that the ratio
between non-interest-bearing deposit and interest-bearing deposit is in decreasing
fluctuating trend. The mean ratio and standard deviation of ratio of interest-bearing
deposit to non-interest-bearing deposit are 8.18 and 8 percent respectively which
indicates fluctuating trend.

Interest bearing deposit and non interest bearing deposit

200,000,000,000.00
180,000,000,000.00
160,000,000,000.00
140,000,000,000.00
120,000,000,000.00
100,000,000,000.00
80,000,000,000.00
60,000,000,000.00
40,000,000,000.00
20,000,000,000.00
-
2018/19 2019/20 2020/21 2021/22 2022/23

non interest bearing deposit interest bearing deposit

Figure 4: non-interest bearing to interest bearing deposit

Figure4 shows the bank have more in interest bearing deposit which decrease revenue
of bank and decrease profit in term of interest. The ratio are in fluctuating trend which
is not good sign. The interest-bearing deposit are in increasing trend. Bank should invest
such deposit to get good return to so that bank should not suffer from loss.

2.1.4 Trend of Saving deposit of EBL

The saving deposit collected by EBL during the year 2013/14 to 2022/23 is presented
in table 6.
 17

Table 6: Saving deposit of EBL

year Saving Deposit Increase/ %increase

decrease /
Decrease
235,17,90,095 0.061 6.10
2018/19 40,89,12,58,109.00
6,50,00,21,357 0.159 15.90
2019/20 47,39,12,79,466.00
11,31,91,05,262 0.239 23.88
2020/21 58,71,03,84,728.00
-7,04,15,87,467 - -11.99
2021/22 51,66,87,97,261.00 0.120
4,63,33,80,285 0.090 8.97
2022/23 56,30,21,77,546.00
Mean 50,99,27,79,422.00
8.57%
S.D. 6,37,52,59,602 3.27%

C.V. 12.5% 38.23%

Source: EBL Annual reports.

Table 6 shows that the trend of saving deposit are 6.10 percent, 15.9 percent, 23.88
percent, -11.99 percent and 8.97 percent over the study period in 2018/19 to 2022/23.
The highest and lowest trend of saving deposit are -11.99 percent and 23.88 percent in
2021/22 and 2020/21 respectively. The researcher has found that the ratio of trend of
saving deposit lies between -11.99 percent and 23.88 percent. The average of ratio of
trend of saving and standard deviation of such trend are 8.57 percent and 3.27 percent.
Which indicates that there is fluctuating on saving deposit collected by EBL during the
period of 2018/19 to 2022/23.

The average is 8.57 percent which is lower than 100. It means that EBL has, there is
insufficient cash on hand to pay off all the deposit of the customers. This may not be
the bad news if the bank has the condition to extend normal credit terms to the suppliers
and very little credit extended to its customers.

Similarly, the standard deviation of data analyzed is 3.27 percent which is very much
lower than the mean, it means that most of the numbers are close to the average. And
cash and bank balance and total deposit are less volatile.
 18

Likewise, the CV shows the extent of variability of the data in relation to the mean of
the population. The CV obtained here is 38.23% percent which means that the ratio of
SD to mean is low. Lower the ratio of SD to mean, better the risk return trade off.

Trend of saving deposit of EBL

30.00%
23.88%
25.00%

20.00% 15.90%
15.00%
8.97%
10.00% 6.10%
5.00%

0.00%
2018/19 2019/20 2020/21 2021/22 2022/23
-5.00%

-10.00% -11.99%

-15.00%

Trend of saving deposit of EBL

Figure 5: Trend of saving deposit of EBL

Figure 5 shows that the total saving deposit is in increasing trend from 2018/19 to
2020/21 and the decreases in 2021/22. In 2021/22, the saving deposit decreases which
is not good sign to the bank. And the again increases in 2022/23.

2.2 The second objective of the study was to examine the trend and growth in deposit
mobilization of Everest Bank Limited. Deposit of customers are mobilized by the
commercial bank by providing the loans and advances to the customers. Loans and
advances provided by the EBL to its customers are summarized in table 9.

Table 7:Loans and advances of EBL

Year Loan and advances Increase/decrease %increase/

Decrease
2018/19 1,04,64,42,00,903 14716631334 0.164 16

2019/20 1,12,21,17,38,338 7567537435 0.072 7

2020/21 1,27,68,72,24,568 15475486230 0.138 14

2021/22 1,45,48,05,29,033 17793304465 0.139 14

 19

2022/23 1,59,47,92,94,513 13998765480 0.096 10

Mean 1,29,90,05,97,471.00
12.20%

S.D.
20,36,32,70,419 2.33%

C.V. 15.68% 19.06%

Source: EBL Annual reports.

Table 7 shows that the trend of loan and advance of EBL are 1,04,64,42,00,903 in
2018/19, 1,12,21,17,38,338 in 2019/20, 1,27,68,72,24,568 in 2020/21,
1,45,48,05,29,033 in 2021/22, 1,59,47,92,94,513 in 2022/23 during the study period
2018/19 to 2022/23 respectively. The highest and lowest ratio are 16 percent and 7
percent in 2019/20 and 2018/19 respectively. The researcher has found that ratio lies in
between 7 percent and 16 percent. The average and standard deviation of ratio are 12.2
percent and 2.33 percent respectively which indicates the percentage of increment is
fluctuating in nature.

The average of loan and advances is 12.20 percent which means credit management of
JBBL is in good position.

Similarly, the standard deviation of data analyzed is 2.33 percent which is lower than
the mean, it means that most of the numbers are close to the average. And the volatility
is lesser between the values.

Likewise, the CV shows the ratio of standard deviation to mean. The CV obtained here
is 19.06 percent which reveals that the ratio of SD to mean is low. Lower the ratio of
standard deviation to mean, the better the risk return trade off
 20

loan and advance of EBL

18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2018/19 2019/20 2020/21 2021/22 2022/23
fiscal year

Figure 6: loan and advance of EBL

Figure 6 shows that the trend of loan and advance of EBL are 16 percent, 7 percent, 14
percent, 14 percent and 10 percent during the study period 2018/19 to 2022/23
respectively. The highest and lowest ratio are 16 percent and 7 percent in 2019/20 and
2018/19 respectively. The researcher has found that ratio lies in between 7 percent and
16 percent. The average and standard deviation of ratio are 12.2 percent and 2.33
percent respectively which indicates the percentage of increment is fluctuating in
nature.

2.6 The third objective of the study was to examine relationship between deposits and
loans and advance of the Everest Bank Limited. Table 10 summarizes the relationship
between deposit and loan &advances of EBL during the period of 2018/19 to 2022/23.

Table 8: Deposit and loan & advances of EBL

Year Total deposit %Increased Loan and %Increas Ratio

advances e
2018/1 12 1,04,64,42,00,90 16 81%
9 129,568,152,895.0 3
0
2019/2 11 1,12,21,17,38,33 7 78.17
0 143,545,475,184.0 8 %
0
 21

2020/2 12 1,27,68,72,24,56 14 79.69

1 160,220,256,944.0 8 %
0
2021/2 8 1,45,48,05,29,03 14 84.22
2 172,739,184,950.0 3 %
0
2022/2 15 1,59,47,92,94,51 10 80.54
3 198,007,807,066.0 3 %
0
Mean 78.17
%

S.D. 37.66
%

C.V. 48.18
%

Table 8 shows portrays the relationship between deposit collected by EBL and its
mobilization in terms of loans & advances to customers. During the period of 2018/19
to 2022/23 both deposit and loan &advances are increased but the increment is not even.
During the year 2018/19 deposit was increased by 12% whereas the loans &advances
was increased by 16% only. During the year 2016/17 deposit was increased by 1% but
the loans & advances was increased by 14%. The regression result presented in Table
9 revealed that there is strong positive relationship between loans & advances and
deposit collected by EBL.

The average of loan and advances to total deposit ratio is 78.18 percent which means
credit management of EBL is in good position.

Similarly, the standard deviation of data analyzed is 37.66 percent which is lower than
the mean, it means that most of the numbers are close to the average. And the volatility
is lesser between the values.

Likewise, the CV shows the ratio of standard deviation to mean. The CV obtained here
is 48.18 percent which reveals that the ratio of SD to mean is low. Lower the ratio of
standard deviation to mean, the better the risk return trade off

Table 9: Regression result

 22

Model Unstandardized Coefficients Standardized t Sig.

Coefficients
B Std. Error Beta
-
(Constant 4456660461.
1061290137 -2.381 .044
1 ) 692
8.327
Deposit .872 .034 .994 25.807 .000
a. Dependent Variable: loans

The regression result revealed that 99.4% variance on loans & advances of EBL is
explained the deposit collected by EBL.

Deposit and loan & advance

18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2018/19 2019/20 2020/21 2021/22 2022/23
Fiscal year

total deposit loan and advance

Figure 7:Deposit and loan & advance

The figure7 shows that the total deposit ratio is 12 percent and loan and advance is 16
percent in 2018/19. After that both ratios decreases to 11 percent and 7 percent
rescpectively in 2019/20. After that again both ratios increases to 12 percent and 14
percent respectively in 2020/20. Then loan and advance remain same but total deposit
decreases to 8 percent in 2021/22 and then the ratio again increases to 15 percent and
14 percent respectively for both 2022/23.

2.7 The fourth objective of the study was to evaluate Return on Assets and loan to
deposit ratio of Everest Bank Limited. Total assets and net profit of EBL during the
period of 2013/14 to 2022/23 is presented in table 12.
 23

Table 10:Total assets and net profit of EBL

Year Total Assets Net profit

2018/19 170077533454.00 3054122062

2019/20 185023189704.00 2516243710

2020/21 211650249438.00 1770939497

2021/22 225381322534.00 2479400875

2022/23 250090492650.00 3362115439

Mean 208444557556.00 2,636,564,316.60

S.D. 10474354129 53809011.09

C.V. 5.02% 2.04%

Source: EBL Annual reports

Return on assets of EBL is calculated by applying the formula:
Return on Assets= (Net income / Total assets) *100. Table 13 summarizes the result of
ROA of EBL during the period of 2013/14 to 2022/23.

Table 11:ROA of EBL

Year Total Assets Net profit NP/TA ROA in %

2018/19 170077533454.00 3054122062 0.017957234 1.80

2019/20 185023189704.00 2516243710 0.013599613 1.36

2020/21 211650249438.00 1770939497 0.008367292 0.84

2021/22 225381322534.00 2479400875 0.011000915 1.10

2022/23 250090492650.00 3362115439 0.013443596 1.34

Mean 208444557556.00 2,636,564,316.60 1.29

S.D. 10474354129 53809011.09 0.32

C.V. 5.02% 2.04% 2.5

Table 11 shows that the ROA of EBL are 1.8 percent, 1.36 percent, 0.84 percent, 1.1
percent, 1.1 percent, 1.34 percent during the study period 2018/19 to 2022/23
respectively. The highest and lowest ROA of EBL lies are 1.8 percent and 0.84 percent
 24

in 2018/19 and 2020/21 respectively. The researcher has revealed that the ROA of
EBL during the years 2013/14 to 2022/23 are not satisfactory, since the ROA of any
year is not more than 5%. The highest ROA of EBL was 1.80% during the year 2018/19
and the lowest ROA was 0.84% during the year 2020/21. The profitability of the bank
seems poor. The average is 1.29 percent which means that EBL needs to increase the
efficiency of assets utilization to increase the earning.

Similarly, the standard deviation of data analyzed is 0.32 percent which is much lower
than the mean, it means that most of the numbers are close to the average. And the
volatility is lesser between the values.

Likewise, the CV shows the extent of variability of the data in relation to the mean of
the population. The CV obtained here is 2.5 percent which reveals that the ratio of SD
to mean is low. Lower the ratio of SD to mean, better the risk return trade off.

ROA
2.00%
1.80%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2018/19 2019/20 2020/21 2021/22 2022/23
Fiscal year

ROA

Figure 8: Return on asset

figure 8 shows that the ROA of EBL are 1.8 percent, 1.36 percent, 0.84 percent, 1.1
percent, 1.1 percent, 1.34 percent during the study period 2018/19 to 2022/23
respectively. The highest and lowest ROA of EBL lies are 1.8 percent and 0.84 percent
in 2018/19 and 2020/21 respectively. The researcher has revealed that the ROA of
EBL during the years 2013/14 to 2022/23 are not satisfactory, since the ROA of any
year is not more than 5%. The highest ROA of EBL was 1.80% during the year 2018/19
 25

and the lowest ROA was 0.84% during the year 2020/21. The profitability of the bank
seems poor.

2.2 Major findings of the study

Following are the major findings of this study:
• Everest bank ltd collects deposits from its customers in four different headings,
namely: non-interest-bearing deposit, saving deposit, fixed deposit and call
deposit. The trend of non-interest-bearing deposit of EBL is fluctuating in
nature. Although there is an annual increment in interest bearing deposit
collected by EBL the percentage of increment is fluctuating in nature. The ratio
between non-interest-bearing deposit and interest-bearing deposit is in
decreasing order. The interest-bearing deposit is 13 times more than non-
interest-bearing deposit during the year 2013/14 which is 12 times during the
year 2016/17, 9times during the year 2020/21 and 8 times during the year
2022/23. There is fluctuating on saving deposit collected by EBL during the
period of 2013/14 to 2022/23. The saving deposit during the year 2013/14 was
Rs 264894,44,298.00 which reached at Rs 563021,77,546.00 during the year
2022/23. The highest increased in saving deposit collection was 23.88% in the
year 2020/21 and lowest increased in deposit collected by EBL was -11.99% in
the year 2021/22. The average saving deposit collection of EBL was Rs
426802,63,509.00 during the study period.
• There was annual increment of loans and advances of EBL, the percentage of
increment is fluctuating in nature. During the year 2015/16 the increment of
loan and advances is highest, 25% and lowest increment was observed during
the year 2019/20, 7%.
• There is strong positive relationship between loans & advances and deposit
collected by EBL, 99.4% variance on loans & advances of EBL is explained the
deposit collected by EBL.
• ROA of EBL during the years 2013/14 to 2022/23 are not satisfactory, since the
ROA of any year is not more than 5%. The highest ROA of EBL was 2.20%
during the year 2013/14 and the lowest ROA was 0.84% during the year
2020/21. The profitability of the bank seems poor. loan deposit ratio of EBL
during the year 2013/14 to 2022/23. The ideal loan-to-deposit ratio is 80% to
 26

90%. The LDR during the year 2014/15 is 66%, 2013/14 is 77% and 2015/16 is
73% which are less than 80%.
 27

CHAPTER 3
SUMMARY AND CONCLUSION

In this chapter entire study is summarized based on those objectives and findings of the
study. The data collected from survey are analyzed to give the findings presented in the
chapter 2, of which this summary is drawn.

Objectives Findings
To analyze the trend Everest bank ltd collects deposits from its customers in four
and growth in saving different headings, namely: non-interest-bearing deposit,
deposit collection of saving deposit, fixed deposit and call deposit. The trend of
Everest Bank Limited. non-interest-bearing deposit of EBL is fluctuating in
nature. Although there is an annual increment in interest
bearing deposit collected by EBL the percentage of
increment is fluctuating in nature. The ratio between non-
interest-bearing deposit and interest-bearing deposit is in
decreasing order. The interest-bearing deposit is 13 times
more than non-interest-bearing deposit during the year
2013/14 which is 12 times during the year 2016/17, 9times
during the year 2020/21 and 8 times during the year
2022/23. There is fluctuating on saving deposit collected
by EBL during the period of 2013/14 to 2022/23. The
saving deposit during the year 2013/14 was Rs
264894,44,298.00 which reached at Rs 563021,77,546.00
during the year 2022/23. The highest increased in saving
deposit collection was 23.88% in the year 2020/21 and
lowest increased in deposit collected by EBL was -11.99%
in the year 2021/22. The average saving deposit collection
of EBL was Rs 426802,63,509.00 during the study period.

To examine the trend There was annual increment of loans and advances of EBL,
and growth in deposit the percentage of increment is fluctuating in nature. During
the year 2015/16 the increment of loan and advances is
 28

mobilization of Everest highest, 25% and lowest increment was observed during
Bank Limited. the year 2019/20, 7%.

To examine There is strong positive relationship between loans &

relationship between advances and deposit collected by EBL, 99.4% variance on
deposits and loans and loans & advances of EBL is explained the deposit collected
advance of the Everest by EBL.
Bank Limited.

To evaluate Return on ROA of EBL during the years 2013/14 to 2022/23 are not
Assets and loan to satisfactory, since the ROA of any year is not more than
deposit ratio of Everest 5%. The highest ROA of EBL was 2.20% during the year
Bank Limited. 2013/14 and the lowest ROA was 0.84% during the year
2020/21. The profitability of the bank seems poor. loan
deposit ratio of EBL during the year 2013/14 to 2022/23.
The ideal loan-to-deposit ratio is 80% to 90%. The LDR
during the year 2014/15 is 66%, 2013/14 is 77% and
2015/16 is 73% which are less than 80%. The highest LDR
was in the year 2021/22, 84%. LDR of EBL seems
satisfactory.

3.1. Summary
Everest bank limited contributes to the capital formation process by transforming
scattered savings into substantial capital investment to support a nation's economic
development through industry, trade, commerce, and agriculture. EBL's obligation is to
save deposits. As a result, EBL must allocate cash across various loans and advances,
as well as investments and asset purchases. Deposit mobilization is critical to the
economic development of undeveloped and emerging countries, as opposed to
developed ones. Banks, including Everest Bank Limited, play an important role in
economic development. EBL has made significant contributions to the development of
our country's economy. It promotes economic growth and improves people's living
conditions. EBL offers a variety of financial services to its customers, such as collecting
deposits, offering loans and advances, agency services, and locker facilities. They also
provide appropriate interest rates for customer savings.
 29

Everest Bank Limited's customer deposits are increasing. The position is fairly
favorable, and saving has helped the bank create additional income by investing in
numerous productive industries. EBL should perform market research on a regular basis
to discover and attract new borrowers utilizing a variety of promotional techniques.
EBL should develop innovative goods to participate in the cutthroat competition and to
meet the challenges posed by new emerging banks.

3.2. Conclusion
The analysis of Everest Bank Limited's performance from 2013/14 to 2022/23 reveals
several important trends. The bank collects deposits in four categories: non-interest-
bearing, savings, fixed, and call deposits. While the non-interest-bearing deposits have
shown fluctuations, interest-bearing deposits have generally increased, although the
rate of increase varies each year. The ratio of interest-bearing to non-interest-bearing
deposits has been decreasing over time, with interest-bearing deposits being eight times
higher than non-interest-bearing deposits by 2022/23. Savings deposits also fluctuated,
starting at Rs 264,894,44,298.00 in 2013/14 and reaching Rs 563,021,77,546.00 in
2022/23, despite a notable decline of 11.99% in 2021/22. Loans and advances have
seen consistent annual growth, peaking at a 25% increase in 2015/16 and dipping to a
7% increase in 2019/20. There is a strong positive relationship between the bank’s
deposits and its loans and advances, with 99.4% of the variance in loans and advances
explained by the deposits collected. However, the Return on Assets (ROA) for Everest
Bank Limited has remained below 5%, indicating poor profitability, with the highest
ROA being 2.20% in 2013/14 and the lowest at 0.84% in 2020/21. The loan-to-deposit
ratio (LDR) mostly stayed below the ideal range of 80% to 90%, except in 2021/22
when it reached a satisfactory 84%. Overall, the bank shows growth in deposits and
loans but struggles with profitability and maintaining an ideal loan-to-deposit ratio.
 30

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