Summer project report BBA TU- Bikram Adhikari


A Project Work Report


Student name : 

T.U. Regd. No.: 

Symbol No.: 

Mahendra multiple campus 

Ghorahi, Dang

Submitted to 

Faculty of Management 

Tribhuvan University 

Mahendra multiple campus

In Partial Fulfillment of the Requirement for the Degree of  

Bachelor of Business Admiration  (BBA) internal Assignment 

Dang, Nepal

January, 2022


This report has been prepared on “Comparative Financial Performance Analysis of Century commercial Bank Limited partial fulfillment of the requirement for the Bachelor of Business Administration. It is strictly based on the internal assignment forwarded by T.U in partial fulfillment of the requirement for the Bachelor of Business Administration. I have tried to attempt every chapter simple and precise. A detail of list of authors and the Books, which were used as inputs in course of the preparation of the reports. 

I would like to extend my heartiest gratitude to Supervisor Mr. ISHWARI PRASAD GHIMIRE, . under whose guidance this work has been successfully completed. I would like to express my deep appreciation to all who helped me in preparing this report. Furthermore, it would not have been possible without the kind support and help of my family. Without their help this report would not have been completed.  



Title page                                                   i

Acknowledgement                                                                                                                         v

Table of Contents                                                                                                                          vi

List of Table                                                                                                                                 vii

List of Figures                                                                                                                              viii

Abbreviations                                                                                                                                ix


1.    Background of the Study    1

2    Profile of Sample Banks    2

3    Objectives    3

4    Rationale    4

5    Review    4

6    Methods    8

    7            Research Design 

   8              Data analysis & results




AU             : Assets Utilization Ratio 

CCBL            : Century Commercial Bank 

C.V             : Coefficient of Variation

EPS            : Earnings Per Share 

Liq.            : Liquidity 

LLP             : Loan loss Provision 

LTD            : Loan to Deposit Ratio 

MEGA         : Mega Bank Limited 

Min.             : Minimum 

NBL             : Nepal Bank Limited 

NPA             : Non-Performing Assets

NPL             : Non-Performing Loan  

NRB            : Nepal Rastra Bank 

ROA            : Return on Assets 

ROE            : Return on Equity 

S.D.            : Standard Deviation

TD            : Total Deposit 

T.U.             : Tribhuvan University 


  1. Background of the Study 

Fundamental analysis is a method used to determine the value of a stock by analyzing the financial data that is fundamental to the company. In order to make a rational and scientific investment decision, an investor has to evaluate a lot of inform as to the part as well as the expected future performance of companies, industries and the economy as a whole in advance such evaluation or analysis is known as fundamental analysis. 

The study of performance of listed commercial banks and returns to investors occupies an important role in the development of capital market. Development and expansion of capital market are essential for the rapid growth of the country. Capital market helps economic development by mobilizing long term capital needed for productive sector. It is vital to long term growth and prosperity of the economy since it provide the channel through which needed funds can be raised. 

The role of money in an economy is very important. Proper and well-planned management of money directs, determines and enhances the health and productivity of total financial sector and the performance of financial sector affect the growth of economy. The economy of a country indicates the development of the country. Financial sector plays an important role in the development of the country and mobilization of financial resources. Hence, money is a subject to manage, and banks are the manager. Therefore, banks as manager collects, disperse and controls the flow of money. 

Bank is a financial institution, which plays significant role in the development of the country. It helps the growth of agriculture, trade, commerce and industry of the national economy. The banking sectors is largely responsible for collecting household saving its items of different types of the deposit and regulating them in the society by lending them in different sector of the economy. The banking sector has now reached even to the most remote areas of the country and has contributed a good deal to the growth of the economy. By lending their resources in small scale industries under intensive banking programmed the banks has contributed to the economic growth if the economy. 

The term commercial bank refers to a financial institution that accept deposits, offers checking account services, makes various loans, and offers basic financial product like certificate of deposit (CDs) and saving accounts to individual and small businesses. Commercial banks, which occupy quite important place in the framework of every economy. Commercial banks lend numerous services to their customer with a view of facilitating their economic and social life. All the economic activities of each and every country are greatly influenced by the commercial bank of that country. Commercial banks, by playing actives roles, have changed the economic structures of the world. Thus, commercial banks have become the heart of financial system. 

Profile of Sample Banks

Century Commercial Bank Limited 

Century Commercial Bank Limited (CCBL) is a national level commercial bank established on January 23, 2011 with the objectives of providing simplified banking services by taking advantages of innovations in information and communication technology. CCBL aims to extend its reach to the unbanked population of Nepal and is driven with the mission of “Saral Banking Sabaikolagi” (Simplified Banking for All). Century bank customers have officially become the part of Eastern Bank Community. The Bank has a network of 126 branches, 10 extension counters, 25 branchless banking and 108 ATMs across the country and offers a wide range of banking products in deposits, lending and other value-added services such as internet/mobile banking remittance and branchless banking etc. The bank’s team comprises of more than 1100 staffs and caters to more than 7,00,000 customers. In line with the progressive strategy, the bank focuses on implementing sustainable business practices and deliver consistent growth that is sustainable and profitable to all its stakeholders. 

In last 52 weeks high low price- 324.00-212.00

180 days average- 258.77

Latest Dividend 

Bonus share- 5.75%

Cash dividend- 0.3%

Year- 2077/2078

Book close date- 2022-01-03

    1. Objectives

The general objective of this study is to examine financial performance of the Century bank and Mega bank. The specific objectives of the study are given below: 

  • To measure the performance analysis of selected banks.

  • To find out the profitability position of selected banks. 

    1. Rationale 

Research itself has own importance because it aims to gain knowledge and to add the new literature to the existing field. The significant of this study lies mainly in filling a research gap on the study of comparative financial performance analysis of with respect to Century commercial bank and Mega bank. This study will contribute significantly to solve the problem existing in the financial institution and to formulate the policy and strategies to maintain activities effectively. The study is important for commercial banks, researchers, scholars, investor, students, government and many other parties. So, this study will be helpful to those who want to study in further detail and widely in this field. At last, it is expected that the study will add a drop of literature to the field of commercial banks and their comparative financial performance analysis. The significance of the study are as follows: 

  • The study is mainly significant to the shareholders, depositors and other creditors to identify the productivity of their funds.

  • It helps in tracing the various problems regarding profitability of the banks.

  • Every individual as well as further researcher will have a good source of literature about finding by this research. 


    1. Literature Review 


Review of Literature is the study of past research studies, article and conceptual framework for the related studies. It is advancement of existing knowledge and in-depth study of subject matters. It starts with a search of a suitable topic and continues throughout the volume of similar or related subjects. This chapter Literature Review highlights upon the existing upon the existing literature and research related to the present study with a view to functioning out what had already been explained and how the present research adds to his dimension. This chapter attempts to review the following relevant literature to make the project report effective. 

Review of Supportive Texts

  • Review of books

  • Review of related article 

  • Review of previous project report 

  • Review of financial reports of concerned banks

Conceptual Review of Commercial Bank 

“A bank is a business organization that receives and holds deposits of funds from others, makes loans, extends credit and transfer funds by written under order of depositors.” A Commercial band is one which exchange money, deposits money, accept deposits, grants loans and performs commercial banking functions and which is not meant for co-operative, agriculture, industries or for such specific purpose. 

The term commercial bank refers to a financial institution that accept deposits, offers checking account services, makes various loans, and offers basic financial product like certificate of deposit (CDs) and saving accounts to individual and small businesses. Commercial Banks are those banks, which perform all kinds of banking function as accepting deposits, advancing credits, credits creation and agency functions etc. They provide short-term credit, medium-term credit and long-term credit for trade and industry. They also operate off-balance sheet functions such as issuing guarantee bonds, letter of credit, etc. 

Concept of Financial Analysis 

Financial analysis is the process of evaluating business, projects, budgets, and other finance-related transactions to determine their performance and suitability. In another words, financial performance analysis is the process of determining the operating and financial characteristics of firm from accounting and financial statements. The goal of such analysis is to determine the efficiency and performance of firm’s management, as reflected in the financial records and reports. The analyst attempts to measure the firm’s liquidity, profitability and other indicators that the business is conducted in a rational and normal way, ensuring enough returns to the shareholders to maintain at least its market value. 

Financial performance analysis is a process of identifying the financial strength and weakness of the firm by properly establishing the relationship between item of balance sheet and the profit and loss account. The balance sheet, which represents a snapshot of the firms’ financial position at the movement in time and next is the income statement that depicts a summary of the firm’s profitability over time. 

  1. Profit and loss accounts 

  2. Balance sheet     


This chapter provides the overall framework or plan for the collection, analysis and presentation of data required to fulfill the objectives of the study. The main objectives of the study is to analyze and evaluate comparative financial performance of Century Bank Limited and Mega Bank Limited. To meet the objective, the following methodology is applied in the study, which is described as below.   

Research Design 

By research design we mean an overall framework or plan for the activities to be undertaken during the course of a research study. The plan is the overall scheme or program of the research. Therefore, to achieve the desired objectives of this study descriptive and analytical research design is applied. Descriptive research design seeks to find out the fact by help of sufficient date and information. 

Population and Sample

At present, there are 27 commercial banks are operating in Nepal. Due to time and resources factors, it is not possible to study all of them regarding the study topic. All the commercial banks that are operating in Nepal are considered as the population. From the commercial banks of Nepal two banks are taken as sample i.e., Century Commercial Bank Limited and Mega Bank Limited.

Nature and Sources of Data 

The study is based on secondary data. For the purpose of the study, the annual reports of the CCBL and MEGA are used as the major sources of data. Besides the annual reports of those banks required data and information is collected from the following sources. 

  • NRB reports and bulletins and its website.

  • Various publications dealing in the subject matters of the study. 

  • Various articles published in journals, etc. 

  • Various research report and Dissertations.

  • Nepal Stock Exchange repost and is website. 

  • Various website about Nepalese economy and share market. 

Formal and informal talks with the senior staff of the company were also helpful to obtain the information of the related problem.

Data Collection Procedures

As stated earlier, the study is mainly based on secondary data. The annual reports and other information have been obtained from sample banks. NRB directives, banking and financial statistics and other publications are collected from the website of NRB. Some supplementary date and information, literature review is collected from the Mahendra Multiple Campus Library Dang, Dang Valley College Dang. NRB publication, different journals magazines and other published and unpublished reports documented by the concern authorities. 

Methods of Analysis 

Purpose of this study is the different data obtained from various sources are arranged and tabulated. Using various financial and statistical analytical tools makes analysis of tabulated data. Such analytical tools are presented as under. 

Financial Tools 

This study is based on following tools and techniques. 

Earning Quality

  1. Return on Assets (ROA)

Return on assets is the numerical relationship between net incomes after taxes to total assets of a company. It is primarily an indicator of managerial efficiency. It indicates how capably the management of the company has been converting the institution’s assets into net earnings (Rose, 1999). It is calculated by using the following model. 

  1. Earnings Per Share (EPS) 

Earnings per share provides a direct measure of the returns flowing to the company’s owners its stockholders measured relative to the members of shares to the public (Rose, 1999). It gives the strength of the share in the market. Following is the expression of earning per share. 

Other Financial Indicators 

  1. P/E Ratio 

The price to earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS). In another words, P/E is short for the ratio of a company’s price to its per- share earnings. As the name implies, to calculate the P/E, you simply take the current stock price of a company and divide by its earnings per share (EPS).

Statistical Tools

  1. Average 

A simple arithmetic average is used to summarize the data as a representation of mean data. A simple arithmetic average is a value obtained by dividing the sum pf the values by their numbers (Kothari,1989). 

Limitations of the Study 

As every study is conducted within certain limitations the present study is not an exceptional.

It has some limitations due to complexity of the subject matter, difficulty in obtaining accurate measurement, influence of the measurement process on results, difficulty in making accurate predictions, vague objectives etc. The study is based on a case study of Century Bank and Mega Bank, which may not represent the overall scenario of all commercial banks. Basically, the study is limited within the following factors. 

  • Among 27 commercial banks in Nepal, the study is conducted on only two banks Century Bank and Mega Bank. 

  • Most of the data are of secondary natures and calculation, conclusions of the study will fully depend on the accuracy of the data provided by the respective organization. 

  • The study covers the financial performance of the Century Bank and Mega Bank for the period of only five fiscal years (F/Y 2073/2074 to 2077/2078) 


This chapter deals with presentation and analysis of data collected from annual reports of the bank. The raw data collected has been organized and processed using various tools discussed in the previous chapter- “Research Methodology”. In this chapter data and information are presented and analyzed using different financial tools in order to achieve the objectives of the study. In data presentation and analysis.  

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