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Himalayan Bank Report

This document provides background information on a study analyzing the profitability ratios of Himalayan Bank Ltd over a 5 year period from 2013-2018. Specifically, the study aims to analyze earnings per share, return on equity, and the overall profitability position of the bank. The document outlines the research methodology, which will use secondary financial data and ratio analysis to assess the bank's performance.

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Shiva Dhakal
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1K views5 pages

Himalayan Bank Report

This document provides background information on a study analyzing the profitability ratios of Himalayan Bank Ltd over a 5 year period from 2013-2018. Specifically, the study aims to analyze earnings per share, return on equity, and the overall profitability position of the bank. The document outlines the research methodology, which will use secondary financial data and ratio analysis to assess the bank's performance.

Uploaded by

Shiva Dhakal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1.

1 Background of study

Profitability means the ability of a company to earn a profit. Every firm is most
concerned with its profitability. One of the most frequently used tools of financial
ration analysis is profitability ration, which are used to determine the company's
bottom line and its return to its investors. Profitability measures are important to
company managers and owners alike ratio. Profitability ratio show a company overall
efficiency and performance. Profitability ratios are divided into two types: margin and
returns. Ratios that show margin represent the firm ability to translate sales dollar into
profits at various stage of measurements.

Himalayan Bank limited is one of the largest private bank of Nepal. This bank was
incorporated in 1992 by few eminent individuals of Nepal in partnership with the
employee's provident fund and Habib bank Ltd of Pakistan. Himalayan bank is also the
1st commercial bank of Nepal with the most of its shares held by the private sectors of
Nepal. The bank was funded in 1993, January 18 and has 44 branches. 18 of its
branches are located inside the Kathmandu valley, while the rest are spread across the
nation.

1.2 Statement of the Problem

Commercial banks gives loan to the despite sectors and the loan receiver is entitle to
pay the interest and the principle amount in time but in practice loans are not
recovered as per within the expiry of repayment period. Nepalese banking sector has
been becoming a victim of hug non-performing assets. Therefore, the research is
carried out in order to look into the comparative weakness and inefficiencies of
concern bank.

To sum up the research issues are:

 What is the situation of EPS?


 What is the situation of Return on equity?
 What is the profitability position in Himalayan Bank Ltd?

1.3 Objectives of the study

The main objectives of this study are

 To analyze the earning per share


 To analyze the return on equity.
 To analyze the profitability positon of Himalayan bank ltd.

1.4 Limitation of the study

Many limitation have been faced while preparing this fieldwork report. Some of the
limitations are given below:

The analysis will be based upon secondary data from balance sheet and income
statement maintained by the company and published in annual reports, provided by
Himalayan Bank Ltd. official's website. It focuses only one profitability ration so, overall
position of HBL cannot be judged by this report. This study will cover the information
only data from 2013/14 to 2017/18 only last five fiscal years.

1.5 Research Methodology


a. Population and sample

Himalayan Bank Ltd. was established in the year 1993 but this report is based on only
the data and information relating to five fiscal years from 2013/14 to 2017/18. So the
sample for this study in the data of last five fiscal year.

b. Research Design
To analyze the profitability of HBL mostly, this study will be based on descriptive casual
comparative and analytical method. The secondary data will be used for analysis for
the period of five year ranging from 2013/14 to 2017/18.

c. Nature and sources of data

This study is conducted on the basic of secondary data that are annual reports
published by HBL (Balance Sheet and Profit and Loss a/c). Data will be collected from
company and website. The supplementary data and performance will be obtained
from unpublished official records of company, journal etc.

d. Technique of Analysis

The various statistical tools and financial tools will be used for analysis of the
profitability of HBL. These analysis tools include ratio analysis, trend analysis,
comparative financial statement analysis, tables, bar diagram, line chart etc.

𝑁𝑃𝐴𝑇
Earnings per Share (EPS)=
𝑁𝑜.𝑜𝑓 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠ℎ𝑎𝑟𝑒

𝑁𝑃𝐴𝑇
Return of equity (ROE)=
𝐸𝑞𝑢𝑖𝑡𝑦

1.6 Organization of the Study

This study has been organized in three chapter. It presented to some aspects of the
profitability ration analysis of Himalayan Bank Limited. The title and contents of each
chapter are given briefly bellows:

Chapter I Introduction

It describe the introductory part of the study where background of the study,
statement of the problem, objective of the study, limitation of the study and
research method used.
Chapter II Related Literature Review

It deals with review of literature of related studies. It contains conceptual review,


review of previous works and research gap.

Chapter III Research method

It describe the types of research, population of sample, types of data, tools and
techniques applied to the whole process of research.

Bibliography

 Pradhan. S. (2007) Financial distress, Financial ratio and stakeholder losses in


corporate restructuring (Unpublished master thesis). Faculty of management,
Tribhuvan University, Kathmandu
 Regmi, R.B. (2005) Profitability analysis of Nepalese commercial bank (A case
study of NGBL). Faculty of management, Tribhuvan University, Kathmandu.
 Khan, M.Y. & Jain. P.K. (1998) Financial management, text and problems. Tata
McGraw Hill Publishing Company Ltd.
 Pandey, J. M (1999) Financial management, New Delhi, Vikash Publishing
House.
PROFITABILITY RATION ANALYSIS OF HIMALAYAN BANK LTD.
A Project Work Report

Submitted By
Bimala Kumari Magar
Campus Roll No.: 380007
TU Regd No. 7-2-0838-0437-2015
Group: Finance

Submitted To
Head of Research Department
The Faculty of Management
Padmakanya Campus, Bagbazar
Kathmandu

In Partial Fulfillment of the Requirements for degree of Bachelor of Business


Studies (BBS)

May 2019

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