Submitted by:

Dhansing KC

BBA 3rd  Semester

Mahendra Multiple campus

Ghorahi, Dang




Submitted to:

  Ishwori Ghimire

Concerned Department- MMC


A Project Work Report In Partial Fulfillment of the Requirement for the Degree of

Bachelor of Business Admiration  (BBA) internal Assignment.)










I hereby declare that the project work report entitled A Performance Analysis Of Agricultural Development Bank Limited.” submitted to Faculty of Management, Tribhuvan University, Kathmandu is an original analytical work under the supervision of Prof. Ishwari Prasad Ghimire, Faculty member, Mahendra Multiple Campus- Dang, and is submitted in partial fulfillment of the requirements for the award of the degree of Bachelor of Business Administration (BBA).


This project work report is a new experience to me. Obviously, an great opportunity too. I have given my best effort. However, In case of any errors, I have got a dedicated finance teacher to help me eliminate such mistakes.





Title page                                                                                                                                         1

Acknowledgement                                                                                                                           2

Table of Contents                                                                                                                             3

Abbreviations                                                                                                                                   4





Ø           Background of the Study                                                                                             5                                                                    

Ø           Profile of Sample Banks                                                                                              6

Ø           Objectives                                                                                                                    7

Ø           Limitations of study                                                                                                     8

Ø           Rationals                                                                                                                      9

Ø           Population and sample                                                                                                10

Ø           Tools                                                                                                                          10-11

Ø            Data collection procedure                                                                                           12                                           

Ø            Data Presentaion                                                                                                         13   

Ø            Data analysis                                                                                                               14                





ADBL        : Agricultural Development Bank Limited 

EPS            : Earnings Per Share 

BFIs           : Bank and financial Institutions

NRB           : Nepal Rastra Bank 

ROA           : Return on Assets 

ROE           : Return on Equity 

T.U.            : Tribhuvan University 

PE              : Price to earning  ratio






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 information 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 Analysis Of Agricultural Development Bank Ltd.’ to outline the strength and weaknesses is done by taking ratios between various fundamental indicators like EPS,PE,Networth etc. Out of 28 commercial banks 27 of them are listed in NEPSE.

Banks are the financial institutions that mobilizes money of depositors to various productive sectors. The growth and state of financial sector resembles a country’s strength. Withot proper development of financial sectors, no other sector can smoothly run and expand. The expansion of real/productive sectors significantly depends upon the growth of financial sector. The more bigger and powerful the financial sectors the more they can invest on real sectors. Thus, the condition of financial sectors directly affects the output of an economy.


Profile Of Sample Bank


Agricultural Development Bank Limited (ADBL)  is “A” class bank established on january 2, 1968 a.d. with the main objective of  providing institutional credit for enhancing the production and productivity of the agricultural sector in the country, the Agricultural Development Bank, Nepal was established under the ADBN Act 1967, as successor to the cooperative Bank. ADBL’s  51% shares is owned by the government and remaining 49% is owned by public. The bank worked as a premier rural credit institution since its establishment, contributing substantial agricultural credit supply in the country. Rural finance has been the principal operational area of ADBN in the past. However, the bank is also involved in commercial banking operations since 1984, to provide commercial banking services. It has 278 branches operating over 7 provinces and 77 districts. While providing comprehensive services with complete banking solution, the bank has main motto of promoting rural agriculture, productive and deprived sectors. The bank is committed to provide best banking services through its widespread network and help the government from its part, to achieve the aim of:"Prosperous Nepal, Happy Nepali".

Some indicators of performance analysis are as follows;

52 days price(low-high): 303.8 – 551

Book value :                    214.72

Latest Dividend (2077/78): 20 % bonus+1.05 % cash

Book close :                     31 Dec,2021


Objective Of Study


To analyse the performance of Agricultural Development Bank to depict strengths and weakness using tools: PE ratio, EPS, networth, ROA, Net profit, ROE and total assets 

Limitations Of Study


·         Limited Budget

·         Limited Time of reference ( historic data of last 4 quarters only)

·         Secondary source of data collection

·         Negligence of other indicators

Rational of study

This study is done to depict the financial position of Agricultural Development Bank limited and analyse its strengths and weaknesses. Furthermore, it helps to formulate appropriate policies to eliminate existing problems and operate bank more efficiently. Thus, this research could be an aid to new investors, existing shareholders, students, researchers and the whole BFIs.

Population And Sample

There are 155 BFIs currently operating in Nepal. Out of this population ADBL is selected as sample of study.



ROA(Return On Assets):

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.


ROE(Return On Equity):

ROE is the measure of a company's net income divided by its shareholders' equity. It is a gauge of a corporation's profitability and how efficiently it generates those profits. The higher the ROE, the better a company is at converting its equity financing into profits.


PE  Ratio:

The price to earnings ratio, also called the P/E ratio, tells investors how much a company is worth. The P/E ratio is simply the stock price divided by the company’s earnings per share for a designated period like the past 12 months. The price/earnings ratio conveys how much investors will pay per share for Rs. 1 of earnings.


Net worth is the value of all assets, minus the total of all liabilities. Put another way, net worth is what is owned minus what is owed.  Net worth is a measure of wealth. Net worth is the sum of all assets owned by a person or a company, minus any obligations or liabilities.

Net Profit:

Net profit is the amount of money a business earns after deducting all its operating, interest, and tax expenses over a given period of time. To arrive at this value, we need to know a company's gross profit, and then interest and tax liabilities are deducted to reach net profit. Net profit is the measurement of a company's profit once operating costs, taxes, interest and depreciation have all been subtracted from its total revenues. 

Total Assets:

The meaning of total assets is all the assets, or items of value, a  business owns. Included in total assets is cash, accounts receivable (money owing to you), inventory, equipment, tools etc. The value of all of a company’s assets is added together to find total assets.It is the resource with economic value that a business owns or controls with the expectation that it will provide a future benefit.

Data Collection Procedure

In this study, data is collected from secondary source. i.e, posted by company on website. Annual audiated report is the major source of data for this study. NRB directives, banking and financial statistics and other publications are collected from the website of NRB

                                     Data Presentation

 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 topic- “Tools”. In this chapter data and information are presented and analyzed using different financial tools in order to achieve the objectives of the study.

As on 2078/79





PE ratio


Net Profit

Total Assets








0.212 %























The above table shows the indicators that resembles the company’s performance throughout the quarters. 1st qarter shows the performance of first 3 months of financial year. Quarter 2nd is the aggregate of 1st  and 2nd. In this way, Quarter 4th is the aggregate of all quarters. i.e, anuual.

Data Analysis:


The state and trend of these indicators help us to analyse the strengths and weakness of this bank.


ROE:  Return on equity is 7.97% on the last quarter. It is the derivative of net profit and total equity. It fluctuates on the basis of net profit. ROE increases with the increase in net profit but  decreses with the rise in equity.

Networth:  Networth is in declining trend. It is due to the trend of distributing bonus share to shareholders. As the number of share increases, networth also declines. On the other hand, it indicates the increase or decrease in total assets and total liabilities. i.e, networth is the difference between total assets owned minus total liabilities obliged to pay.

Net profit: Net profit is in increasing sate throughout the quarters. Q4 resembles the annulized net profit. It signifies that ADBL is concerned about enhancing operational efficiency. It is the strength of the company.

Total Assets: Total assets is also at increasing trend. when there is an increase in total assets in a given period, the liabilities and equity of the company increase by the same amount. That means that net working capital is also increasing. Net working capital is current assets of a company minus its current liabilities. It deals with a portion of the total assets.

ROA:  Return on assets (ROA) measures how efficient a company's management is in earning a profit from their economic resources or assets on their balance sheet. It is in increasing state. It is good for investors.

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