A Field Work Report/ Project work on Ratio and Profitability analysis on Himalayan Bank Limited for BBS/ BBA Final year



This fieldwork has been presented to the department of commerce of Hamro College, Biratnagar. This work has been undertaken for the partial fulfillment of the requirement for the degree of Bachelor of business studies. It is sincerely hoped that this report will prove to be useful for researchers, managers, and readers who are interested to know the detail and analytical study on the financial performance of (in terms of ratio analysis) of Himalayan bank limited.
The fieldwork has been completed with the combined effort of any individual. I am heartily thankful to the Manager of Himalayan Bank who helps me to access data and oral information without which this fieldwork report would not be possible.
I would like to express my graduate to our respected Head of Department Prof. Dr. Name Surname, Supervisor Mr. Name Surname for his excellent supervision, support and guidance through the preparation of this report. and lastly, I would like to give special thanks to Mr. Name Surname from “Hamro Computer Training Centre, Biratnagar”  for Computer typing print     
                                                          Your Name
                                                                    Exam Roll No.0000000
                                                                   Hamro College, Biratnagar
&                     And
A.I                   Average Income
A/C                 Account
ABBS             Any Branch Banking System
ATM               Automatic Teller Machine
B.S                  Balance Sheet
BM                  Branch Manager
C.A                 Current Assets
C.L                  Current Liabilities
C.R                  Current Ratio
CBS                central Bureau Of statistics
Co.                  Company
CRR                Cash Reserve Ratio
CV                  Coefficient OF Variation
Dep                 Depreciation
Dept.               Department
EBIT               Earnings before interest & tax
F/Y                  Fiscal year
GPR                Gross Profit Margin
I.e.                   that is
LTD                limited
Mgmt              Management
MIS                 Management Information System
Mr.                  Mister
NBL                Nepal bank Limited
NPAT              Net Profit after Tax
NRB                Nepal Rastra Bank
Pvt                   Private
Q.R.                Quick Ratio
RBB                Rastriya Banijya Bank
Rose                Return On shareholder equity
ROTA             Return on shareholders’ Equity
Rs                    Rupees
TATR              Total Assets Turnover Ratio
1.                  INTRODUCTION
1.1 BACKGROUND OF THE STUDY                                                               
1.1.1 PROFIT OF HBL                                                                                                                            
1.2 LITERATURE SURVEY                                                                                   
1.3 PURPOSE OF THE FIELD WORK                                                                    
1.5 ASSUMPTION AND LIMITATION OF THIS STUDY                                 
1.4 FIELDWORK PROCEDURE                                                                           
1.5 METHOD OF DATA COLLECTION                                                               
 2.1 PRESENTATION OF DATA                                                                           
2.2 ANALYSIS OF DATA                                                                                      
2.3 ANALYTICAL STUDY                                                                                    
3.1              SUMMARY                                                                                      
3.2              CONCLUSION                                                                                            
3.3              RECOMMENDATION                                                                                
1. List of table
1.      HBL branches                                                                    
2.      Share pattern of HBL                                                                                
3.     A comparative balance sheet of HBL from 2067/2068 to 2069/070 18
4.      Current Ratio                                                                                             
5.      Quick Ratio                                                                                    
6.      Debt Ratio                                                                                      
7.      Debt to Equity ratio                                                                                   
8.      Return on Shareholder’s Equity                                                     
9.      Return on Asset                                                                                         
10.  Earning per share                                                                            
11.   Analytical Table                                                                            
  2.List of figure
Share pattern of HBL                                                                        
1.1              BACKGROUND OF STUDY
In today’s world, a lot of financial activities are undertaken by all the peoples, industries and also by the service providers.They are engaged in their own business, trade and profession but whenever there comes a task of conducting financial transaction with any party, they need a proper means, less risky and much believable and safe medium between them to exchange finance. Financing is needed for every organization for the start of business to the end of business. Investment, operating expenses, working capital expenses and also to keep the money at safe and profitable place each and every organisation needs proper institution conducting financing activities. Thus, a bank is the first and last choice of each and every organisation.
             The role of bank become prominent for the all round development of the country because it facilitates or adds social, economical and industrial sector. Bank help directly or indirectly to invest and mobilize saving of the people in systematic way. It helps people not only saving money but also enhance their living standard by providing various facilities. Hence, in the present context it is essential for each and every individual to have sound knowledge of banking and services provided by it for public and social welfare.
            Commercial Banks are one of the most important engine to run the financial vehicles of today’s world .Commercial Banks are very much important part of economy which required in all sector whenever financial transactions is to be held. Thus, Himalayan Bank Limited is also a commercial bank that is growing rapidly during past two decades.
                Himalayan Bank Limited was established in 1992 B.S. and started its business activities from 18 January, 1993 with an authorized capital of 24 corers. It was incorporated by distinguished business personality of Nepal partnership with employee provident fund and Habib Bank limited, one of the largest private sector commercial Banks of Pakistan. Chairman of Himalayan Bank, Mr. Manoj Bahadur Shrestha informed in 25th Annual General Meeting that the Bank’s total deposit base reached Rs. 92.88 billion during the period under review, recording a growth of 6.35 percent over the previous year. Similarly, the loans and advances reached Rs. 77.64 billion recording a growth of 12.36 percent. Himalayan Bank Limited was forth private sector joint venture bank to be given license to operate. HBL started its services with 77 employees from Trammel Banking Office. Now its employees are more than 300.
         The bank given many facilities to their customers, such as credit card, tele banking, Any Branch Banking system (ABBS), Automatic Teller Machine (ATM), 24 hours banking services. To support both the trade financing and remittance business, the banks have been continuously expanding its correspondent network. The bank has also been providing the facility of SMS banking and Internet banking to ensure that customer optimally enjoys modern banking system.
1.2.1        Objectives of HBL
Bank was established with the aim of simulation the Nepalese economy and taking it’s to never height. Whenever any business opportunity that has come along have been thoroughly evaluated and tapped whenever economy globally with more competencies. It has following objectives: 
a)                  Providing quality services for the customer with innovation and customization to meet customer needs to uphold quality of services.
b)                  To get maximum financial and social benefit by operating its services.
c)                  To provide attractive returns for stakeholders.
d)                 To develop a fruitful bond with society through corporate social responsibilities.
e)                  To provide services for various and every organizations.
f)                   To uplift the living standard of Nepalese by developing easy, safe cheaper banking services for all Nepalese.    
1.2.2        HBL branches
Table 1
HBL Branches
Branches within the Kathmandu Valley:
1.     Thamel Branch
2.     Maharajgunj Branch
3.     New Road Branch
4.     Patan Branch
5.     Bhaktapur Branch
6.     Teku Branch
7.     Kalanki Branch
8.     Chabahil Branch
9.     Sorahkhutte Branch
10. Naya Baneshwor Branch
11. Dillibazaar Branch
12. Satdobato Branch
13. Swayambhu Branch
14. Kaushaltar Branch
15. Battisputali Branch
16. Samakhushi Branch
Branches outside the Kathmandu Valley:
1.     Banepa Branch, Kavrepalanchowk
2.     Butwal Branch, Rupandehi
3.     Bharatpur Branch, Chitwan
4.     Tandi Branch, Chitwan
5.     Birganj Branch, Parsa
6.     Bhairahawa Branch, Rupandehi
7.     Pokhara Branch, Kaski
8.     Hetauda Branch, Makwanpur
9.     Biratnagar Branch, Morang
10. Dharan Branch, Sunsari
11. Nepalgunj Branch, Banke
12. Itahari Branch, Sunsari
13. Palpa Branch, Palpa
14. Ghorahi Branch, Dang Deukhuri
15. Trisuli Branch, Nuwakot
16. Damak Branch, Jhapa
17. Parsa Bazar Branch, Chitwan
18. Baglung Branch, Baglung
19. Gorkha Branch, Gorkha
20. Dhangadi Branch, Kailali
21. Kawasoti Branch, Nawalparasi
22. Barahabise Branch, Sindhupalchowk
23. Betrawati Branch, Rasuwa
24. Birtamode Branch, Birtamod
25. Dhading Branch, Dhading
26. Ram Bazaar Branch, Ram Bazaar Pokhara
Source: Annual Report of HBL
1.2.3     Share of HBL
The        Shareholders are the real owners of the business. The bank has collected its share capital by issuing share of different parties. The share pattern is shown below:
Share pattern of HBL
Bank promoter
Employee provision fund
habit Bank ltd, Pakistan
General public
Figure 1: Share pattern of HBL
1.3              literature Survey
            The business financial performance is analyzed to have information about the stability of financial operation and activities of the business. The financial results of the business are analyzed to know about efficiency and effectiveness of the business activities. Thus, the field work report focused on analyzing the financial performance of the business organization.
1.3.1        Introduction to Financial Analysis
       The financial analysis helps to analyze and know or study about the relationship that exists between different items of financial statement. The process of evaluation of relationship between different items of financial statement and their complementary part to get the information about the situation and total activities of the business is called financial Analysis.
            The analysis of financial data is necessary for different parties according to the need of their own business matters. The shareholders or owners of the business are interested to know the capacity to pay current liability , the buyer or purchaser or loan lender are interested to know about the capital structure , past and project earning , change in financial situations , shareholder or probable  investors are interested to know about dividend payout ratio of the company. Thus, their need can only be fulfilled with the help of analysis of financial statements.
1.3.2        Ratio Analysis:
The quantity of relationship that exists between two or more than two numerical items is called ratio. Ratio is calculated by dividing one items of relationship with another items. Ratios are calculated into two types. They are unity based ratio and percentage based ratio.
         Ratio analysis of financial data represents the mathematical expression of relationship that exists between two or more than two related items of financial statement. Ratio analysis focuses on numerical relationship that exists between two or more than two financial statement.
      According to O.P. Gupta and P.N. Abort, ‘‘Ratio of two quantities that have been measured in monetary terms which is used in analysis they actually of a firm (also known as accounting ratio) ’’
         According to R. Chopra, ‘‘Ratio services as a measuring of merits of several assets of an enterprise when data from one accounting period are compared with similar data from another.  ’’
1.3.3         Importance of Ratio Analysis:
   Ratio analysis helps to clarify the relationship between the different complementary items of financial statement. It helps the manager to actually judge the business and take some important financial decisions. It also helps to judge the ability and health of a concern through which the important decisions to improve the efficiency of the business can be taken. The importance of Ratio analysis can be highlighted below:
a)                  Useful in expressing future trends
b)                  Useful in showing changes
c)                  Useful in explaining plan
d)                 Helps in setting standard
e)                  Helps in effective cost and other control
f)                   Comparison of efficiency and performance
g)                  Maintaining uniformity
1.3.4        Limitation of Ratio Analysis:
Ratio analysis is an important technique to pasteurize the actual financial situation of business. Although it has certain limitations which are listed below:
a)                  Lack of proper basis of comparison
b)                  Give false result if the ratio are based on incorrect accounting data
c)                  Difficult to forecast future on the basis of past facts
d)                 Price levels changes can make difficult comparison for various years
e)                  Ignores qualitative factors
f)                   Misleading results in the absence of absolute data
g)                  No common standard for comparison
1.3.5        Classificationof Ratio Analysis:
Different parties have different purpose to know about the different types of ratio as per their needs. The financial analysis of the business is done for different parties according to their need. Liquidity position, solvency state, operating efficiency, earning capacity, capital structure analysis of the business can be analyzed by different types of ratios. These types of ratio are:
a)                  Liquidity Ratio
 Liquidity ratio helps to study about financial situation and capacity of the business to meet short-term obligation. This ratio shows relationship between current assets and current liabilities. These types of liquidity ratio are:
i.                        Current Ratio: current ratio is calculated by dividing current assets by current liabilities.
              Current Ratio = Current Assets/ Current liability
ii.                        Quick /acid test Ratio: it shows the relationship between the firm’s liquid assets and current liabilities. Its shows the firm’s ability current liabilities with liquid assets.
Quick ratio =Quick/Acid test Ratio/current liabilities
b)                 Leverage/capital structure/solvency Ratio:
This types of helps to measure the long terms financial position of the business. It helps to measure the ability of firm to pay interest on long terms loans, ability to redeem the debts and financial stability of the business.
The different types of leverage ratio are:
i.                        Debt to equity ratio: debt equity helps to calculate the efficiency of long term financial policy of the business. It is calculated by dividing total debt or total long- term debt by shareholder’s equity.
            Debt equity ratio= total debt/ shareholder’s equity
ii.                        Interest coverage ratio: this is used to examine the capacity of loan service of the business. It is calculated by dividing Earning before interest and tax (EBIT) by interest charges.
            Interest coverage ratio= EBIT/Interest
c)                  Activity Ratio:
This ratio is used to measure the operating efficiency of the firm. It also helps to examine the efficiency of utilization of available means and resources  of  firm. It also helps to examine operating efficiency or functional efficiency of the firm indirectly. Its types are :
1.                  Inventory / Stock turnover ratio : It helps to find the relationship between average cost of  inventory and  average cost of good sold during a certain  period of time.
   Inventory turnover ratio =       cost of goods sold
                                              Average inventory
2.                  Debt turnover ratio : It shows the relationship between amount due from debtors and credit sales .
       Debtors turn over ratio = Credit sales
                                                Average Debtors
Average Debtors            =Opening Debtors +Closing Debtors
3.Average Collocation Period : This ratio  shows the average period that the organization  have to wait collect due amount from debtors .
      Average Collocation period = Debtors × 365days
                                                        Credit sales
4.Net fixed assets Turnover Ratio: This ratio helps to examine the relationship between net fixed assets and sales.
5. Total assets turnover  ratio: It helps to know the use of total assets for promotion of sales :
        Total assets turn over assets ratio =                    Sales
                                                                    total assets
6. Capital employed turnover ratio : It helps to shows the relationship between capital employed and total sales . It also helps to find the sales achieved by the use of long – term loan and owners capital.
    Capital employed turnover ratio =             Sales
                                                              Capital employed
Capital employed =Net worth= shareholders equity +Long term libilities /debts = total assets –current liabilities
D)Profitability Ratio:
  The examination of total functional , operational efficiency of  business is done by profitability ratio . Generally , this ratio helps to find the relationship of sales or investment with other items . The success or failure of the business is studied with the help of profit . The different types of profitability ratio are :
On the basic of sales
·         Net profit margin : this ratio shows the relationship between the net profit and total sales .
       Net profit margin        = Net profit after tax
·         Gross profit margin : It shows the relationship between the gross trading profit and sales .
           Gross profit margin =Gross profit
         Gross profit =Sales –cost of good sold
·         Operating ratio : It shows the relationship between the operating profit expenses and sales
               Operating profit = Cost of good sold +Operating expenses/Sales
                      On the basic of Investment
·         Return on Assets : The relationship between net income and total assets shown by return on assets .
      Retun on assets =   Net income
                                     total assets
·         Return on capital employed : This ratio helps to examine the use of capital employed in the firm by long term debt and shareholders of the form .
          Return on capital employed = Net profit after tax
                                                        /capital employed
·         Return on shareholders equity : It help to shows the relationship between net income and total shareholder equity fund .
            Return on shareholder equity = Net income /shareholder equity
·         Earning per share: It shows the amount that each shareholders will get out of net profit available for them.
            Earning per share = Net profit available for equity share
                                                            / no. Of equity share
1.4              Purpose of the study
    The main purpose of the field work is to examine and analyze the financial position of the HBL by using different tools of analysis. This field work also helps to derive different suggestive measures, if the financial, liquidity, solvency etc. Position of the bank is not satisfactory . It helps to find the operational , financial , managerial , administrative effiency and effectiveness of the bank .
(A)             To show liquidity position.
(B)              To show profitability position
(C)              To show leverage of the bank
(D)             To provide external
(E)              Knowledge  to the student
1.5              Assumption and limitation of the study 
1.5.1        Assumption of the study
The assumption of the study are as pointed below :
(A)             Oral information, interview and explanations given by the officials of the HBL are assumed to be correct.
(B)              Data available in published accounts are assumed to be correct.
(C)              No abnormal condition has been in the bank during these accounting years.
1.5.2        Limitation of the study
There were certain limitation that were inherent in the completion of these field work study. These limitations are:
(A)             During the study, the officials of the respond in different manner and showed very little interest to the researchers.
(B)              Limited and certain tools area only used for the study which is also not free from limitations.
(C)              The primary and secondary data are used for the study which is also not free from limitations.
(D)             Instability in government roles ignored which effect the financial position of the bank.
(E)              Information and study materials were not sufficient.
1.6 Field work Procedure
The newly secondary data have directly collected from the website of the bank. It means all the financial statements , cash flow and accounts representing financial position of the bank were availed from the website.
For the preparation of report, the researchers have gathered various informations and data form the officials of the bank. However , the data available were not in systematic form .The available informations and records presented were analyzed and synchronized in the systematic way . Several questions were made about his introduction , present services , and policy of the bank .
1.7 Methods of data collection 
Data are the aggregate of facts which can numerically be expressed from the very definition of statistics. Collection of data means the methods used to get the necessary information's from units under investigations. The methods of data collection depends upon the nature, object  and scope of the investigation . Collection  of relevant data is essential for correct and important decision making . Generally , two types of data are collected .They are :
               (a) primary data                                    (b) Secondary data

 (a) primary data
         The data which are directly collected or obtained by an investigator or an agent for the first time is primary data . They are first time is primary data. They are first hand data and collected generally by asking officials, staff members and other concerned authorities of the bank .But in this field work this methods is not used.
(b) Secondary data:
         Secondary data are originally collected but obtained from published or unpublished sources. they are also called second hand data because they are not originally in character and hace already been used by other people. They are generally collected from books, journals, papers  and websites.
The data in this field work report have been collected from both primary and secondary sources. Balance sheet, profit and loss A/C and other financial statement has been collection from published sources. These all have provided researchers necessary information related to this study. Different required information about the bank has been collected from official website of the bank.
                                                Comparative Balance Sheet of HBL
Comparative Balance Sheet of HBL
Current assets
Cash Balance
Balance with Nepal Rastra Bank
Balance with Bank/ Financial Institutions
Money at call short notice
Loan Advances and bills purchases
Others Assets
Total Current Assets(A)
Fixed Assets
Fixed Assets
Total fixed Assets(B)
Total Assets(A+B)
Current Liabilities
Income Tax Liabilities
Bills Payable
Other liabilities
Total current libilities
Share Capital
Reserve &fund
Debenture & Bond
Proposed dividend
Total Libilities & capital(A+B)
2.2       Analysis of Data
            The Banks are financial institution which do not bill with sales of any items. Interest received and interest paid is the main transactional items. Thus the ratio that we calculate for analysis of data is limited. Here we focus on following ratios. 
2.2.1 Liquidity Ratios
(a)  Current Ratio
Current Ratio = Current Assets / Current Liabilities
Current Ratio of HBL From 2067/068 to 2069/070
Fiscal Year
Current Assets
Current liabilities
Current Ratio
The Current ratio of HBL is just below 1, its shows that the bank have capacity top Pay it`s current liabilities through it`s current assets . Generally the current ratio of 1:1 is found to be satisfactory . However the current ratio of fiscal years 2074 is 0.9187:1 which seems good. The average of current ratio is 0.7210.
(b) Quick Ratio
      Quick ratio = Quick Assets /Current liabilities
                                           Quick ratio of HBL form 2067/068 to2069/070
Fiscal Year
Quick assets
Current liabilities
Quick ratio
Note: In balance sheet of HBL of 2072, 2073 and 2074,  there are no inventory and prepaid expenses so quick assets are the same as current assets .
The quick assets of the year is 0.7210 which shows that the bank is in very liquid position to pay it`s debts with liquid assets currently .
2.2.2 Leverage Ratio
(a)    Debt assets ratio
   Debt assets ratio = Total Debt/ Total Assets
  Where, Total debt = Creditors + Loan + Other liabilities
                Total assets = Current Assets + Fixed Assets
  Debt Assets Ratio of HBL from 2067/068 to 2069/070
Fiscal year
Total Debt
Total Assets
Debt Ratio
0.00564 (0.5%)
0.01664 (1.66%)
0.01849 (1.85%)
0.01359 (1.35%)
The highest & lowest debt ratio of HBL are 0.018495579 & 0.005647886. The average debt ratio of HBL is 0.01359. It shows that only a small portion of 1.35%  or 0.0135 part of total assets is created by liabilities of the bank.
(b)    Debt Equity Ratio
Debt to equity ratio = Total debt /Total Shareholder`s equity
 Where , Shareholder `s equity = total fund available for Shareholder`s
Debt to equity  ratio from 2067/068 to 2069/070
Fiscal year
Total Debt
Total Shareholders’ Equity
Total debt to Equity Ratio
0.06720224 or  6.72 times
0.18840191 or 18.84 times
9,684,950,0000.20482833 or 20.48 times
0.1534775 or 15.34 times
From the above table , we can see that HBL have average debt to equity ratio of 15.34 times . Its shows that the have invested for its lots of business assets from external sources . Generally , the ratio of 1:1 is found to be satisfactory . Hence , HBL`s in risky position .
  2.2.3 Profitability Ratio
(a) Return on Shareholder`s equity
Return on shareholder`s equity = Net profit After tax / Shareholder`s equity X 100
Return on Shareholder`s equity of HBL From 2067/068 to 2069/070
Fiscal year
Net profit after tax
Shareholder`s equity
15.9836 %
21.9396 %
22.4909 %
20.1380 %
 Above the table shows that the return on shareholder`s equity is increasing  year by year . The average of return on shareholder`s equity is 20.1380 %.
(b)   Return on total assets
Return on total assets = Net profit / Total assets
Return on total assets of HBL from 2067/068 to 2069/070
Fiscal year
Net profit after tax
Total assets
1.3433 %
1.9385 %
2.0308 %
1.7709 %
Above the table shows that the highest & lowest ROA are 2.0308 % & 1.3433 %. The average is 1.7709 %. It reflects that the management of HBL has consistently used its assets to earn reasonable profit.
(C) Earning per share
Earning per share =Net profit for equity shareholder`s / No of equity share
    Earning per share of HBL from 2067/068 to 2069/070
Fiscal year
Net profit after tax
No. of equity
The above table shows that the EPS of HBL is increasing year by year. However it declined in 2074. The earning per share is highest in the 2073 which reflect the consistent & effective operation of activities by the bank.
2.3 Analytical study of each ratio from 2067/068 to 2069/070
Analytical table showing different ratio from 2067/068 to 2069/070
Current ratio
Quick ratio
Debt ratio
0.00564 (0.5%)
0.01664 (1.66%)
0.01849 (1.85%)
Debt to equity
6.72 times
18.84 times
20.48 times
15.9836 %
21.9396 %
22.4909 %
1.3433 %
1.9385 %
2.0308 %
2.3.1. Study of results
The results obtained from, the study or calculation of above ratios helps the researchers to analyze the financial performance of the bank. Generally, the ratios as calculated above of HBL are found to be satisfactory.
(a) The current ratio of the bank is satisfactory but not good. The quick ratio of bank is not in favourable condition. The bank is not in position to pay its current liabilities with the use of its currents assets. The bank is not in position to pay its current liabilities with the use of its current assets. The current ratio of the bank is declining state. Generally, quick ratio should be 1:1 but is lower than it should be. Hence, the bank is in riskier position.
(b) The highest & lowest debt ratio of HBL are 0.018495579 & 0.005647886. The average debt ratio of HBL is 0.01359. It shows that only a small portion of 1.35% or 0.0135 parts of total assets is created by liabilities of the bank.
(c) The table shows that the return on shareholder`s equity is increasing year by year. The average of return on shareholder`s equity is 20.1380 %.
(d) It shows that the highest & lowest ROA are 2.0308 % & 1.3433 %. The average is 1.7709 %. It reflects that the management of HBL has consistently used its assets to earn reasonable profit.
(e) The study shows that the EPS of HBL is increasing year by year. However it declined in 2074. The earning per share is highest in the 2073 which reflect the consistent & effective operation of activities by the bank. The earning of the bank is found to be satisfactory. The amount available for distribution of dividend is also quite satisfactory. The amount available for distribution of dividend is also quite satisfactory. The shareholder's are getting favourable return on their investments. 
Chapter 3
Summary, Conclusion and Recommendation
            This field work report has been prepared with a view to analyze the financial position of HBL. This field work report have been prepared in systematized form by dividing its total part in to three categories. These three parts are Introduction, presentation and analysis of data and summary, conclusion and recommendation.
            The narrator has used his own thought in preparation of the report. His thought might disobey from other persons who are related with this report directly or indirectly. So he would like to apologize with those personnel. The data of this report has been presented by the narrator in his own form to enable the preparation of this repost easy. The other assets have been mixed up with the current assets. If the reader finds any problem, they can see and get clarification from the appendix attached with this report.
            The main areas of analyzing the financial performance of the banks are liquidity position, leverage or capital structure and profitability state of the bank. The narrator doesn't assume that the usual standard of the ratio are fixed by the "Nepal Rastra Bank" . So there might arise some misunderstanding with  the readers. The conceptual view in liquidity area of the bank is harmless. To give the stress definition area, the narrator wants to say that the data for trading business is being pure liquidity but the financial institutions are being soured of investments. That's why the narrator defines it in positive matters.
            Apart from all this, the narrator could not be success in giving the activity ratio because these ratios are not practicable with the nature of the activities of the bank. The data available were unable to calculate such ratios. Thus, some ratios which are not feasible to calculate are left out by the narrator.
            The overall preparation of the report derives that the financial position of HBL is quite good and favourable except current ratio and quick ratio. However, it has satisfactory liquid assets and there is no liquid crisis in the organization. The other information's and ratios that have been calculated by the narrator of past four years show the financial position of the bank is consistently improving year after year. There are certain fluctuations in dividend policy of the bank. The debt ratio of the bank is in risky position but it is quite familiar because the bank has to deal with the debt, loans etc.
            Apart from all above, the financial consistencies is maintained by the bank. The owners of the company are getting favourable return.
Through the banks financial performance is satisfactory and improving year after year, the bank needs some important improvements which are highlighted below: 
(a) HBL should provide more modern service to attract more customers.
(b) HBL should implement proper marketing strategy to meet the competition of commercial banks.
(c) The branches should be expanded to the rural areas of the country to meet banking facilities for each and every Nepalese.
(d) The bank should investigate the new productive sectors and invest in such new sectors.
(e) The services being provided by the bank should be clear and understandable by each customers.
(f) The minimum balance for the account holders should be in liberal position.
(g) The unnecessary charges being charged by the bank on the account holders be eliminated.
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