A Comparative Financial Performance Analysis of Agricultural Development Bank, Nabil Bank and Laxmi Bank

Abstract

he title of the study is A Comparative Financial Performance Analysis of Agricultural Development Bank, Nabil Bank and Laxmi Bank. The main objective of the study is to assess the financial performance of ADBL, Nabil Bank and LBL. The descriptive tools are used to research design have been adopted for study. Secondary data was collected from three commercial banks ADBL, Nabil Bank and LBL in the period of seven years from 2011/012 to 2017/018. The study used to analyze the performance of bank financial and statistical tools. Data have also been obtained browsing the official website of NRB and SEBON. Based on the finding of the study the capital adequacy ratio of all the three banks has met the NRB standard. The nonperforming loan to total loan of ADBL and Nabil Bank was in increasing trend show that the asset quality of the degrading and the decreasing trend of LBL reveal the better quality of assets. The loan loss provision ratio of ADBL is higher than Nabil and LBL. Higher ratio of LLP is a higher level of nonperforming loan and indicates undermanaged institution. Loan loss coverage ratio of all the banks was in good trend that all the banks are able to meet their nonperforming loan obligations. Management of Nabil Bank is more efficient than ADBL and LBL according to net income per employee. Management of ADBL and Nabil Bank is better to curtail the expenses than LBL. According to ROA and ROE Nabil Bank has more productivity and profitability than ADBL and LBL. On the basis of net income to loan and advance, Nabil Bank has higher contribution of loan and advance in income generation than ADBL and LBL. The CRR distribution of Nabil Bank is highly fluctuated. Lower level of ratio indicates liquidity crunch and very high level CRR indicates idle money which do not generate any income. ADBL always cross the NRB standard but Nabil Bank and LBL had below the NRB standard for some years and they suffer liquidity problem.