ANALYSIS OF LIQUIDITY AND PROFITABILITY
OF
NABIL BANK LIMITED
A Project work Report
By
Maisara Kumari Budha
T.U Reg. No: 7-2-180-202-2019
Symbol No: 701800021
Gyan Bahumukhi Campus
Submitted to
The Faculty of Management
Tribhuvan University
Kathmandu
In Partial Fulfillment of the Requirement for the Degree of
BACHELOR OF BUSINESS STUDIES(BBS)
Gyan Bahumukhi Campus
Kohalpur, Banke
August, 2024
Declaration
I hereby declare that the project work entitled “ANALYSIS OF LIQUIDITY AND
PROFITABILITY OF NABIL BANK LIMITED”submitted to the Faculty of Management,
Tribhuvan University, Kathmandu is an original piece of work under the supervision of Mr.
Dinesh Aryal, faculty member, GYAN BAHUMUKHI CAMPUS, KOHALPUR, BANKE,
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.
________________________
Maisara Kumari Budha
Date:
ii
Supervisor’s Recommendation
The project work report entitled “ANALYSIS OF LIQUIDITY AND PROFITABILITY OF
NABIL BANK LIMITED” submitted by Maisara Kumari Budha of GYAN BAHUMUKHI
CAMPUS, KOHALPUR, BANKE 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.
______________________
Mr. Dinesh Aryal
Supervisor
Date:
iii
Endorsement
We hereby endorse the project work report entitled “ANALYSIS OF LIQUIDITY AND
PROFITABILITY OF NABIL BANK LIMITED” submitted by Maisara Kumari Budha of
Gyan Bahumukhi Campus College, Kohalpur, Banke, In partial fulfillment of the
requirements for the degree of the Bachelor of Business Studies (BBS) for external evaluation.
_________________ ___________________
Mr. Ganesh Kumar Khadka Mr. Tek Bhadur Gurung
Head of Research Committee (Campus Chief)
Date: Date:
iv
Abstract
The main reason of this field work is to gaining the knowledge about various component of
Liquidity of commercial bank. Under this heading it is gaining the knowledge about the Study
“ANALYSIS OF LIQUIDITY AND PROFITABILITY OF NABIL BANK LIMITED”. Data
are extracted from staff of bank and customers, cross verifying from various persons, who are
having knowledge about the bank.
The project report is prepared as per instructions of professor/supervisor on the selected
chapter and format received from campus. After observing necessary report of senior students,
books of various writers report writing was started. When preparing report own technique is
used without copying from any books and report but some correlation are done with some
reports of senior student and books of writers.
Under this heading it is express the Study of “ANALYSIS OF LIQUIDITY AND
PROFITABILITY OF NABIL BANK LIMITED” data are collected, analyzed and interpreted
and presented in report.
v
Acknowledgement
This project work report entitled “ANALYSIS OF LIQUIDITY AND PROFITABILITY OF
NABIL BANK LIMITED” has been prepared in the form as required by the Tribhuvan
University for the partial fulfillment of the degree of Bachelor of Business Studies (BBS).
Giving me great opportunity to prepare this Report held under Tribhuvan University Firstly, I
would heartily like to thank to Tribhuvan University.
I am highly indebted to my respectable supervisor Mr. Dinesh aryal, Head of Department of
Management of New Gyan Bahumukhi Campus, Kohalpur whose sound theoretical and
practical knowledge provided me the basis for the preparation of this report from beginning
till end.
I would like to express my great sense of gratitude to bank Manager and staff of Nabil
Kohalpur Branch for providing me relevant data and information required for the project work
Report. I also owe an indebtedness to all reputed authors whose writings have provided me the
necessary guidance and invaluable materials for my enrichment of my research paper in all
possible way.
Maisara Kumari Budha
BBS 4th Year
Gyan Bahumukhi Campus
vi
Table of content
Title Page i
Declaration ii
Supervisor Recommendations iii
Endorsement iv
Abstract v
Acknowledgement vi
Table of Contents vii
List of Tables ix
List of Figures x
Abbreviation xi
Table of Contents
Contents Page No.
Chapter-One Introduction 1-8
1.1 Background of the study 1
1.2 Profile of Nabil Bank Ltd 1
1.3 Statement of the Problem 3
1.4 Objective of the study 3
1.5 Rational of the study 4
1.6 Literature review 4
1.6 Financial Analysis 9
1.7 Research Methodology 7
1.8 Limitation of the study 8
1.9 Report Structure 8
CHAPTER-Two: Results and Analysis 9-22
2.1 Presentation of Data 15
2.2 Major findings 21
vii
CHAPTER-Three: Summary, Conclusion and Recommendation 23-27
3.1 Summary 23
3.2 Conclusion 24
3.3 Recommendation 24
BIBLIOGRAPHY 26
APPENDIX 28-32
viii
List of Table
Table No. Title Page No.
Table 1 Liquid Assets of Nabil Bank Ltd 10
Table 2 Liquid Assets to Total Deposit Ratio 12
Table 3 Cash Conversion Ratio 13
Table 4 Profit Margin Ratio 15
Table 5 Net Interest Income of bank 16
Table 6 Earning Per Share of the Nabil Bank Ltd 17
Table 7 Correlation Between the Profit Margin and Liquid Ratio 20
ix
List of Figure
Figure 1: Liquid Assets of Nabil Bank Ltd 11
Figure 2 Liquid Assets to Total Deposit Ratio 12
Figure 3 : Cash Reserve Ratio 13
Figure 4 : Profit Margin Ratio 15
Figure 5 : Net Interest Income of bank 16
Figure 6 : Earning Per Share 17
Figure 7 : Return on Assets (ROA) 18
Figure 8 : Return On Equity (ROE) 19
x
List of abbreviation
A/C Account
BBS Bachelor of Business Studies
DPS Dividend Per Share
EPS Earning Per Share
FY Fiscal Year
i.e. That is
NBBL Nepal Bangladesh Bank Limited.
NEPSE Nepal Stock Exchange
Rs. Rupees
TU Tribhuvan University
NRB Nepal Rastra Bank
RBB Rastriya Banaijya Bank
& And
% Percentage
ROA Return On Assets
ROE Return On Equity
NII Net Interest Income
IS Interest Spread
Ltd. Limited.
xi
