A study an impact of deposit and investment to profitability of EBL and HBL

Abstract

Commercial banks occupies quite an important place in the framework of every economy because it provides capital for the development of the industry,trade and business investing the saving collected as deposits. Therefore, this study is concerned with the Impact of Deposit & Investment in the Profitability of commercial banks with reference to EBL & HBL. An arrangement whereby an individual or organization may place cash for the safekeeping in a bank,discount house or financial institution is known as deposit. Investment refers to as using present money to get long term benefit. Investment in its broadest sense means the sacrifice of current money for future money.Profit is primary a measuring rod of a success of a business enterprises. Profit is essential for the survival of the business.It is the difference between revenue generated and expenses occurred over the period of time. The main objective of the study is to analyze the Impact of deposit & investment on profitability of EBL & HBL and comparison of such between them selves. For the study purpose out of 32 commercial banks, two sample banks are selected i.e. EBL & HBL, descriptive and analytical research design are used, secondary data are used and different types of data analysis tools like average, standard deviation,correlation, probable error & financial ratios have been used. An average increasing rate of deposit of EBL has 20.69%, HBL has 10.70%, andthe net investment of HBL is higher than the net investment of EBL in each fiscalyear. Total income of EBL is more variable than HBL. There is significant relationship between the deposit, investment & net profit of EBL and in significant relationship between the deposit investment & net profit of HBL. The average net profit of EBL is Rs.788.72 and HBL is Rs.774.85 million and the net profit of EBLis more variable than HBL. An average return on loan & advance ratio of EBL is2.84%, HBL is 2.74% and the return on loan & advance ratio of HBL is more variable than EBL.