Financial Performanc of Nepalese Commercial Banks (With Special Reference to NBL & EBL

Abstract

This paper explore the effect of financial performance of Nepal commercial bank(withreference to NBL and EBL) Banking sector is the backbone for the economic development to developing country like Nepal which collects the small unit of amount to huge and accelerates them to productive sector. Banking sector play an importance role in sustaining financing markets and has a significant impact on the success of economy. Sound finance health of a bank is the guarantee not only to its depositors but is equally significant for the shareholder, employees and whole economy as well.

The objective of this study was to find to evaluate and analysis the financial performance of these two banks i.e. NBL and EBL and to recommend the suitable suggestion for improvement. To examine the activity of NBL and EBL banks.Analyze the profitability, performance of NBL and EBL banks.To explore the impact of liquidity, leverage, activities on profitability of NBL and EBL banks.They give greater contribution to GDP too. The production of finance and real–estate sub sector is increasingly comparatively.The research is basically the comparative evaluation of financial performance between Everest Bank Limited and Nepal Bank Limited.

Descriptive approach has been are used to evaluate the financial performance of the bank. This study based on secondary data. Secondary data have been collected from their respective annual report especially from profit and loss account, balance sheet and other publications made by the banks. Also some data has been gathered from Nepal Stock Exchange’s Website. Similarly, articles, journals related to the financial performance study, previous research report etc., have also taken into account while collecting information. At present there are 28 commercial banks operating in Nepal under the guidance of Nepal Rastra Bank. For the purpose of convenience only, two commercial banks viz. Nepal Bank Ltd and Everest Bank Ltd. have been taken as sample of this study and rest of the commercial banks are considered as population. The study found that, there is no significant means different of profitability among of peer bank group in term of ROA,