ANALYSIS OF FINANCIAL PERFORMANCE OF

MACHHAPUCHCHHRE BANK LIMITED

A project Work Report

By

TU. Regd No:

Exam Roll no:
Group: According or Finance
Collage Name:

Submitted to
The Faculty of Management
Universal Academy
Janakpur Dham Nepal

In Partial fulfillment of the requirements for the degree of

BACHELOR OF BUSINESS STUDY'S (BBS)

JANAKPUR DHAM
APRIL ,2026
 Declaration

I hereby declare that the project work enticed “ANALYSIS OF THE FINANCIAL POSITION
OF MACHHAPURCHARA BANK” summitted to the Faulty of Management, Universal
Academy, Janakpur is an original piece of work under the supervision of ( Your Faculty
Teacher Name ), faculty member. (Universal Academy) and is submitted in partial fulfillment
of the requirement for the award of the degree of Bachelor of Business Studies (BBS) . This
Project work report has not been submitted to any university or institution for the award of
any degree or diploma.

YOUR NAME:

DATE :
 Supervision's Recommendation

The project work report entitled “ANALYSIS OF FINANCIAL PERFORMANCE OF

MACHHAPUCHHRE BANK LIMITED” submitted by (YOUR NAME ) of (UNIVERSAL
ACADEMY ) is prepared under my supervision as per the procedure and format
requirements laid by the Facility of Management , Universal Academy , as partial fulfilment
of the requirement for the award of the degree of Bachelor of Business Studies ( BBS ), I,
therefore, recommend the project word for evaluation .

Signature:
Mr.:
Date:
 Endorsement
We hereby the project work report entitled “POSITION OF FINANCIAL PERFORMANCE
OF MACHHAPUCHHRE BANK LIMITED ” submitted by (Your Name )

Universal Academy, in partial fulfillment of the requirements for award of the Bachelor of
Business Studies (BBS ) for external evaluation .

Signature: Signature:

Name of Chairman: Name of Campus Chief:

Date: Date:
 Acknowledgements

This field work report entitled " A Report on Financial Position Analysis of Machhapuchhra
Bank Limited " has been prepared in particle fulfillment for the degree of Bachelor of
Business Studies (BBS) under the teachers of teacher name Campus . It is my privilege of
getting helps and co- operation form different persons. It is not possible to enumerate the
names of all of them. However, it will be matter of injustice if I foregate the names of those
personalities whose valuable suggestion and co- operation escorted to complete this field
work report.

First and foremost, I would to offer special thanks to ( teacher name ) for their proper
suggestions. I would like to thanks all the staff of the Macchapuchhre Bank Limited for their
full support in providing all the necessary date. Which helped me in preparing this report. I
could not remain without thinking to my teacher and lecturers who all helped me during my
study of BBS and during preparing of this report.

Your Name:
BBS 4th Year
Universal Academy
Table of Contents
Declaration……………………………………………………………………. ii
Supervision’s Recommendation………………………………………………. iii
Endorsement…………………………………………………………………. iv
Acknowledgements……………………………………………………………v
Table of Contents…………………………………………………………...… vi
List of tables…………………………………………………………………… viii
List of graphs………………………………………………………………….... ix
Abbreviations…………………………………………………………………. …x
CHAPTER -1 …………………………………………………………………….1
INTRODUCTION………………………………………………………………....1
1.1. Background of
the study ……………………………...……………………….1
1.1.1. Meaning of Financial Analysis………………….………….……….1
1.1.2. Elements of the Financial analysis ……...……………………………1
1.1.3. Commercial Banking Scenario in Nepal……………………………….1
1.2. Profile of Organization ………………………………………………………….3
1.2.1. Shareholding Composition………………………………………………...5
1.2.2. MBL Network Overview ………………………………………………….5
1.2.3. No. of Staff: 836 (As of April 2026) ………………………………………6
1.2.4. Composition of Board of Directors…………………………………………6
1.3. Statement of Problem…………………………………………………………………6
1.4. Objective of the Study………………………………………………………………...7
1.5. Rationale of the Study………………………………………………………………….7
1.6. Review of Literature………………………………………………………8
1.7. Method of Study…………………………………………………………...11
1.7.1. Research Design ……………………………………………………11
1.7.2. Population and Sample……………………………………………….12
1.7.3. Nature and Source of Data…………………………………………….12
1.7.4. Data Processing Procedures………………….……………………….13
1.7.5. Data Analysis Tools…………………………………………………….13
1.8. Limitation of the Study……………………………………………………………17
CHAPTER. II…………………………………………………………………………….19
RESULTS AND FINDINGS…………………………………………………………….19
2.1 Introduction ………………………………………………………………………….19
2.2. Financial Statement Analysis ………………………………………………………….19
2.2.1. Liquidity Ratio……………………………………………….………………19
2.2.2. Profitability Ratio …………………………………………………………….26
2.2.3. Assets Management Ratio …………………………………………………….33
CHAPTER III…………………………………...……………………………………………40
SUMMARY AND CONCLUSION ……………………………………...………………….40
3.1. Summary……………………………….………………………………………………40
3.2. Conclusion …………………………………………………………….……………….40
BIBLIOGRAPHY…………………………………………………………………………….1
APPENDICES ……………………………………………. Error! Bookmark not defined.
Questionnaire………………………………………………… Error! Bookmark not defined.
 List of tables:

Table 1: Cash and Bank Balance to Investment Ratio

Table 2: Cash and Bank Balance to Total Deposit Ratio
Table 3: Cash and Bank Balance to Total Assets Ratio
Table 4: Current Ratio
Table 5: Return on Shareholder’s
Fund Table 6: Return on Total Assets
Table 7: Earning per Share
Table 8: Dividend per Share
Table 9: Loan and Advances to Fixed Deposit Ratio
Table 10: Loan and Advances to Total Deposit Ratio
Table 11: Loan and Advances to Total Assets
 List of graphs:

Graph 1: cash and Bank Balance to investment Ratio

Graph 2: Cash and Bank Balance to Total Deposit Ratio
Graph 3: Cash and Bank Balance to Total Assets Ratio
Graph 4: Current Ratio
Graph 5: Return on Shareholder’s Fund
Graph 6: Return on Total Assets
Graph 7: Earning per Share
Graph 8: Dividend per Share
Graph 9: Loan and Advances to Fixed Deposit Ratio
Graph 10: Loan and Advances to Total Deposit Ratio
Graph 11: Loan and Advances to Total Assets
 Abbreviations

CB : Commercial Bank
CEO : Chief Executive Officer
CBB : Cash and Bank Balance
CV : Coefficient per Bank
DPS : Dividend per Share
MBL : Machhapuchchhre Bank Limited
EPS : Earning per Share
i.e : That is
Ltd : Limited
NRB : Nepal Rastra Bank
NPAT : Net Profit After Tax
P&L Account : Profit and Loss Account
ROA : Return on Equity
ROE : Return on Deviation
SD : Standard Deviation
TD : Total Deposit
 CHAPTER -I
INTRODUCTION
1.1 Background of the Study

1.1.1 Meaning of Financial Analysis

Financial statements analysis is the process of analyzing a company's financial statements for
decision-making purpose and to understand the overall health of an organization. Financial
statements record financial data. Which must be evaluated through financial statement
analysist to become more useful to investors, shareholders, managers, and other interested
parties. It is the method of evaluating past, present, and projected performance of a company.
Analysis track performance measures acres financial statements using several different
methods for financial statement analysis, including vertical, horizontal, and ratio analysis. It
helps to analyze whether an entity is stable, solvent, liquid or profitable enough to warrant a
monetary investment. It is therefore essential to analyze the financial statement to know the
actual performance and financial position of the organization.

1.1.2. Elements of the Financial analysis:

Profitability
Profitability is the most common measure of an enterprise including the banking industry.
Profitability refers to the state or condition of yielding or earning a financial profit or gain. It
refers to the ability of the company to use its resource to generate revenues in excess of its
expenses. Similar, profitability ratios are generally considered to be the basic bank financial
ratio in order to evaluated how well bank is performing in terms of profit. For the most part,
if a profitability ratio is relatively higher as compared to the competitors(s), industry
averages, guidelines, or previous years’ same ratio is relatively higher as compared to the
competitor(s), industry averages, guidelines, or previous years’ same ratios, then it is taken as
indicator of better performance of the bank.
Liquidity

Liquidity refers to a company's ability to pay its current bills and expenses. In other words,
liquidity relates to the availability of cash and other assets to accounts payable, short-term
debt, and other liabilities. It is characterized by the use of converting an asset into money at a
little cost. In the assets side of the balance sheet of the commercial bank, will be liquid assets,
which can be easily converted into cash- such assets are called liquated assets. Liquidity can
also be defined as the bank's ability to meet immediate maturing liabilities, Liquid assets
mainly include cash and bank balance money at call and short notice, investment in
government securities such as treasury bills, development bonds, saving bonds etc.

The liquidity management function of a bank is regular one. It is known that bank liquidity is
the most sensitive and importance aspect. A bank can't be imagined without liquidity. The
banks and financial institution should keep the stock of liquid assets in the ratio of their
deposit liability, as fixed by the Nepal Rastra Bank. The importance of liquidity is as
followings:

 To meet the expenses for the banks daily administrative work.

 To pay all sorts of deposits.
 To control the economic fluctuation and to keep safe from the risk.
 To fill the demand of the debtor.
 Providing security to the bank.

Leverage Ratio:

Companies rely on a mixture of owners' equality and debt to finance their operations. A
leverage ratio is my one of several financial measurements that look at how much capital
comes in the form of debt (loans), or assesses the ability of a company to meet financial
obligations.

Activity ratio:

Activity ratios measure the relative efficiency of a film based on its assets, leverage or other
such balance sheet items and are important in degerming whether a company's management
is doing enough job of generating revenues and form its resources.
1.1.3. Commercial Banking Scenario in Nepal
Nepal Rastra Bank is the central bank of Nepal. It was established in Baisha 14, 2013 B.S
under Nepal Rastra Bank Act, 2012. It formulates policy to control the function carried out
by the banks. At present, NRB has allowed the commercial banks to fix the interested rate on
deposit as well as credit on the basic of cost and availability of financial resources. This
policy framework has introduced and elements of comparativeness in the financial sectors.

The commercial banks are contributing in the economic development. Resources for
economic development are made available by the commercial banks which ultimately aids to
the overall development of the nation.

In Nepal. "Nepal Bank Limited" was the first commercial banks established in 1994 under
Nepal Bank Act 1993. Under Banijya Bank Act, 2021 B.S. the government launched
"Rastriya Banijya Bank". It was fully financed by the government resources. Likewise, "
Agriculture Development Banks" was established on January 2, 1968 under full ownership of
the government for the purpose of developing agriculture sector.

As per the latest data from Nepal Rastriya Bank, at present, there are 20 commercial banks,
17 development banks and 57 Microfinance companies operating in Nepal. Currently there
are six joint venture banks in operation in Nepal with their branches located in different part
of the county.

1.2. Profile of Origination

Machhapuchhre Bank Limited

Machhapuchhre Bank Limited was registered in 1998 as the first regional commercial bank
from the western region of Nepal and started its banking operation from Pokhara since year
2000. The Bank facilities it is customers' need by delivering the best of services in
combination with the latest state of the art technologies and prudent international practices.

The bank provides modern banking facilities such as Any Branch Banking, Internet Banking,
Mobile Banking, Safe Deposit Locker facilities, Utility Bill paying (Telephone & Mobile),
ATM, (VISA Debit Cards) to its valued customers. Besides these, the Bank is providing 365
days Banking and Evening Counter services to the customers thorough many its offices.
The Bank has been promoted by highly renowned Non-Residential Nepalese, prominent
businessman and industrialists with a vision and dedication to provide the best financial
products and services in the most efficient and profession manner.

Corporate Vision:

To become the bank of the first choice of the people.

Mission Statement:

To become of the most preferred banks in Nepal. easily reorganized as the bank which
satisfices and cares for its customers through quality service, innovation products,
professionalism and wide branch network, offering full array of financial services using
modern technology and with good corporate governance practices.

Core Value:

With the object of supporting the transition from rule based to attitude base behavior, the
Bank is functioning with the following five core values:

1. INTEGRITY: Highest level of integrity / absolute honesty in all the business conduct
and dealings with customers, staff, regulators, and other stakeholders.
2. ACCESSIBILITY: Easy accessibility through tradition as well as modern means of
communication.
3. VALUE CREATION: For shareholders, customers, employers, and the nation.
4. QUALITY SERVICES: Through unmatched professionalism and excellent customer
care.
5. STEWARDSHIP OF RESOURCE: with the feeling of ownership and accountability
1.2.1. Shareholding Composition

The present shareholding pattern of bank is presented below:

S.N. Ownership Percent

1 Promoter 51%
2 Public 49%
Total 100%

1.2.2. MBL Network Overview

Province wise branches No of Branches

Koshi Province 29

Madhesh Province 27

Bagmati Province 52

Gandaki Province 24

Lumbini Province 16

Karnali Province 5

Sudurpaschim Province 12

Total on of Branches 165