A Stduy of Working Capital Management of Everest Bank Limited Laxmi

1) Background of the study :–
One of the most important areas in day to day management

of the firm is the management of working capital .working capital management is the
fictional area of finance that cover all the current account of the firm .working capital
management involves the relationship between firms short term assets and its short
term liabilities .The goal of working capital management is to ensure that a firm is able
to continue it’s a operation and that it has sufficient ability to satisfy both maturing short
term debt and upcoming operational expenses. The management of working capital
plays a vital role for existing of any public enterprises successfully while studies it.it is
the center on the routine day to day administration of current assets and current
liabilities .therefore working capital management in public enterprises is very important
mainly for four reasons.
 Public enterprises must need to determine the adequcicy of investment in current

assets otherwise it could seriously erode their liquidity base.
 They must select the type of current assets suitable for investment so as to raise
their operational efficiency.
 They are required to ascertain the turnover of current assets which determine
profitability of the concerns.
 They must find out the appropriate source of funds to finance current assets.
In simple language ,bank can be defined as a place where the transaction of money
takes place .In other words bank is such as institution that collects scattered deposits
advances and loans. A bank collect scattered deposits advances and loans .A bank
collects deposit from different individual and institution .these collected deposited are
mobilized by giving loans to different individuals ,industries ,commercial enterprises
and so on .Banks are concerned mainly with functions of banking i.e
receiving ,Collecting ,transferring Buying lending investing ,dealing , exchange ,and
servicing (safe deposited ,custodianship ,agency ,trusteeship money) Money claims to
Money both domestically and internationally. The principle activities of bank are
operating current account ,receiving deposit taking in and paying out notes and coins
and making loans. The bank charges the different interest rate, highly for loan and low
for depositors. So , the difference gives actual profit .Bank as a institution originated
form Italy .the Bank of venice in the world of Venice established in 1157 A.D ,was the
first bank in the world .therefore the word bank also form Italian word bank where
means accumulative of money or stock .the second bank was bank of Barcelona of
Spain established in 1844 A.D .the history of modern banking business in Nepal is very
short ,less than half century .The first time commercial bank was established in 1983
A.D .Nepal Rastra Bank came into existence as a central Bank. Nepal Rastriya Banijya
Bank was established in July 23 rd 1966 A.D as a commercial bank .at present there
as 31 commercial bank in Nepal .
Everest bank limited was registered on November 17 1992 and come into operation on
October 18,1994 with an objective of extending professionalized and efficient banking
services to various segments of the society .Everest Bank limited provides customer
friendly services through its wide network connected through ABBS system .the bank
has 105 branches 137,ATM counters 31 Revenue collection counters and 3 Extension
counters across the country making it a very efficient and accessible for its customers
any time, any where paid up capital ordinary share of EBL is 847.02
(2076/2077) .Catering to more than 10 lakh customer ,Everest Bank Limited (EB).
1.2) Statement Of Problem:-
The specific Problem of the study are as follows :-
 What are the major Components of Current Assets ?
 How are the sources of fund created and mobilized ?
 What is the Comparative (year-wise) working capital position of EBL.
 Whether the size ,liquidity ,efficiency and profitability of working capital of

adequate or not ?
1.3) Objective of the study :-
Working capital plays a vital role behind the success and

failure of business .The excess or the short fall of the working capital is harmful for a
business .The main objectives of the study are to examine the management of working
capital of EBL .The specific objectives of the study are as follows :-
 To examine the current assets and current liabilities and their impact on liquidity
and profitability.
 To analyze the working capital trend position of EBL.
 To analyze the financial position of EBL by using different tools and technique.
 To find out suggestions and recommendations on the basis of applied and

financial position.
1.4) Significance of the Study :-
The significance of the study is pointed below :-
 The study can be helpful to aware the shareholders regarding the working
capital management i.e liquidity and profitability of their banks.
 The study can be helpful to go deep into the matters as to why the working
capital management of bank is better than competitors.
 The study will be helpful to them while formulating the policy regarding
commercial banks.
1.5 ) Literature Review :-
This chapter is basically concerned with review of literature

relevant to the topic working capital management .The purpose of reviewing of
literature is to develop some expertise in one's area to see what new contribution has
made and to receive some ideas for developing a research design .Thus previous
studies cannot be ignored as they provide the foundation of the present study .This
chapter highlights the literature that is available in concerned subject as to my
knowledge research work and relevant study on the topic review of journal and articles
and review of proposal work performed previously.
1.5.6 ) Conceptual frame work :-
Conceptual frame work deals with the theoretical aspects of

working capital ,working capital management working capital investment and financing
policies financing of working capital need for working capital determinants of working
capital etc.
1.6) Research Methodology :-
The basic objective of the study is to gain an insight into the

working capital Of Everest Bank Limited Hence to accomplish the objective a good
research methodology has to be followed .The research methodology adopted in this
study to accomplish the objective of working capital analysis constitutes of sources of
collection area of research ,technique and data analysis tools.
1.6.1 ) Research Design :-

A Research design is the arrangement of condition for collection analysis
of data that aim to combine relevance to the research purpose with economy in
procedure .Research design is the plan ,structure and strategy of investigation
conceived so as to obtain answer to research question and to objective of this
study .To achieve the objective of this study ,descriptive and analytical research design
has been used .
1.6.2 ) Population and Sample Size :-
There are 27 commercial bank ,18 Development Banks ,17 Finance

companies and 70 microfinance are currently operating ( as of mid august 2021 ) in
Nepal out of these EBL is selected to analyze working capital management .The
annual financial report is the population of the study .The sample of the study comprise
financial statement balance sheet and profit & Loss A/C of EBL.
1.6.3 ) Sources of Data :-
For the purpose of this study ,data are collected mainly from the
secondary sources .the secondary data are based on the second hand
information .Secondary data were gathered much more quickly than Primary
Secondary source are bulletins and news papers than primary of selected bank annual
report ,official document reference material collected from library.
1.6.4 ) Data Collection Method :-
Generally there are two types of data i.e Primary and secondary
data .The primary data are those data which are collected by the research him / herself
as per the objectives of the research .This study based on secondary data secondary
data include books & Publication NRB publication the data regarding the profile of EBL
and other document were collected from in internet website books ,research papers
articles journals.
1.6.5 ) Tools / Technique for analysis of data :-
Technique of data analysis is the raw data processing

technique to find out the result for making decision .financial as well as statistical tools
are used to analysis of data for this study report different task of ratio which are used
as working capital analysis of a EBL Bank .there are given below :-
 Liquidity Ratio
 Current Ratio
 Quick Ratio
 Debt management ratio
 Debts Assets ratio
1.7 ) Limitation of the Study :-
Although there are several commercial banks in Nepal But the

study has been confined to EBL only. The main limitation of the study are as follows ;
 As the study is fulfillment of BBS program the time assigned for it is limited i.e
to be Completed within the specific time frame .
 The study in only concentrated in working capital management and financial

performance of the EBL.
 The report has taken only five year data banks from year 2073/74 to 2077/78
B.S.
 Although there are many commercial banks but the study confines to only EBL.
1.8 ) Organizations of the Study :-
The present study has been organized into three chapters .They
are whole report summarized by listed below .
Chapter -I : Introduction
This First chapter includes background ,Profile of Organization Objectives ,Rationale

review methods and limitaions.
Chapter-II : Result and Analysis
The second chapter include data presentation analysis & Result findings.
Chapter -III : Summary and conclusion
This third chapter includes summary and conclusions

Bibliography and Appendix are added at the end of this report.
Reference :
 Thapa .K.(2008).Fundamentals of
Investment .Kathmandu Asmita Books Publishers
and Distributions (P) ltd.
 Pant .P.R (2018) Business Research Method

Kathmandu Buddha Publication.
 Ghimire Shivaraj (2005) fundamental of financial

management K.P Pustak Bhandar
A Study of Working Capital Management of Everest Bank Limited

A Stduy of Working Capital Management of Everest Bank Limited Laxmi

Uploaded by

Copyright:

Available Formats

A Stduy of Working Capital Management of Everest Bank Limited Laxmi

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A Stduy of Working Capital Management of Everest Bank Limited Laxmi

Uploaded by

Copyright:

Available Formats

1) Background of the study :–

One of the most important areas in day to day management

 Public enterprises must need to determine the adequcicy of investment in current

1.2) Statement Of Problem:-

The specific Problem of the study are as follows :-

 What are the major Components of Current Assets ?

 How are the sources of fund created and mobilized ?

 What is the Comparative (year-wise) working capital position of EBL.

 Whether the size ,liquidity ,efficiency and profitability of working capital of

1.3) Objective of the study :-

Working capital plays a vital role behind the success and

 To analyze the working capital trend position of EBL.

 To find out suggestions and recommendations on the basis of applied and

The significance of the study is pointed below :-

1.5 ) Literature Review :-

This chapter is basically concerned with review of literature

1.5.6 ) Conceptual frame work :-

Conceptual frame work deals with the theoretical aspects of

1.6) Research Methodology :-

The basic objective of the study is to gain an insight into the

1.6.1 ) Research Design :-

1.6.2 ) Population and Sample Size :-

There are 27 commercial bank ,18 Development Banks ,17 Finance

1.6.3 ) Sources of Data :-

1.6.4 ) Data Collection Method :-

1.6.5 ) Tools / Technique for analysis of data :-

Technique of data analysis is the raw data processing

 Debts Assets ratio

1.7 ) Limitation of the Study :-

Although there are several commercial banks in Nepal But the

 The study in only concentrated in working capital management and financial

1.8 ) Organizations of the Study :-

This First chapter includes background ,Profile of Organization Objectives ,Rationale

Chapter-II : Result and Analysis

Chapter -III : Summary and conclusion

This third chapter includes summary and conclusions

 Pant .P.R (2018) Business Research Method

 Ghimire Shivaraj (2005) fundamental of financial

You might also like