EXECUTIVE SUMMARY
The core objective of the study is to define the influence of capital adequacy, asset quality, management efficiency, earnings and liquidity and sensitivity to market risk on EPS (Earnings per Share) of Nepalese commercial banks by considering yearly data from 2013/14 to 2017/18. This study is mainly focused in financial performance of Nepal Investment Bank Ltd, NIC Asia Bank Ltd and Nepal Arab Bank Ltd (NABIL These three commercial banks mainly have been able to increase their volume of business and has a strong presence in the market it is operating. The study assessed trend of earning per share with CAMELS determinants and analyzed Market Stress Test of the selected sampled banks and in the research study period. The results from this study helps to analyze and conclude results of top performing commercial banks in Nepal.
To meet the objective, annual reports have been analyzed through descriptive analysis. Various ratios that have impact on performance of the bank area analyzed. Analysis of Market Stress Test to predict market risks and ability to withstand such uncertainties as set by Nepal Rastra Bank has been used. The correlation and multiple regression analysis are used to test the set hypothesis. Secondary data analysis is carried out for the study. The data were collected from annual report of the commercial banks and annual supervision report of NRB. Financial statements of previous five years 2013/14 to 2017/18 have been used in the study. 
The descriptive analysis found that CA of the commercial banks are maintaining standards of CA as they are able to maintain CA above 11%. Similarly, same goes to earnings quality as selected banks have ROA above 1 for each year. 
The analysis revealed that there is negative and very weak relationship among the CAR and EPS and significant 2 tailed concluded there is no statistically significant correlation among them. Next there is strong relationship with return on assets, i.e. EQ and EPS there is statistically significant correlation between EPS with EQ. Finally, there is weak relationship of EPS and LQ, while there is statistically significant correlation between EPS and LR and finally, there is negative relationship among EPS and SM there is no statistically correlation between EPS and LQ.
The multiple regression analysis indicates that there is significant relationship of EPS with capital adequacy, asset quality, management quality, liquidity quality and sensitivity to market risk and there is no significant relationship with earnings quality. The variable being significance implies that when the independent variable increase/decrease then it will tend to increase/decrease the dependent variable considerably. The value of VIF factor suggests that there is no multi-collinearity among the chosen variables.
From Market stress test we can conclude that NABIL Bank is able to maintain higher CAR ratio. Whereas NIC Asia Bank has the least ability to maintain CAR ratio among Nepal Investment Bank and NABIL Bank. All banks are still able to maintain CAR above 11% which shows all banks are able to withstand uncertainties from market risks. For the overall ranking, we can conclude that taking all the aspects of CAMELS analysis and market stress test NABIL Bank came up in the first position. Likewise, Nepal Investment Bank came in second position and NIC Asia Bank in third position.
If the loan is not repaid in time then it will affect the performance of the banks, if the NPA is higher than the bank is in poor condition. The bank has very fluctuating non-performing loan. So the bank must improve and maintain it properly.
From market stress test we can see maintaining CAR above minimum requirement helps banks to efficiently absorb market uncertainties, therefore optimal capital adequacy is vital for performance of banks.

ACKNOWLEDGEMENT
The attainment and the concluding result of this research required a lot of guidance and support from several people and it was a privileged to have got this all along the completion of this GRP research. Firstly, I would like to give special thanks to my college and to my professors for their guidance and support. And also my acquaintances for the encouragement during my project study period and at the time of preparation of this report. I would like to express my gratitude to my supervisor Mr. Dipendra Karki for his great perspectives, guidance, support and suggestion.

Sincerely,
Pranaya Rajbhandari