Analysis of Financial Performacne of Selected Commercial Banks in Nepal

Abstract

This present study has investigated the analysis of financial performance of selected commercial banks in Nepal. This study examines the influence of determinants on the financial performance of commercial banks in Nepal over time period from 2008/09 to 2017/18. This study is based on descriptive as well as analytical research design to achieve the objectives of the research. This study is based on secondary data. Secondary data have been collected from the annual published accounting and financial statement of ADBL, CZBIL and HBL bank. The study use to analyse the performance of bank financial and statistical tools. The research further concludes that the effect of determinants on the performance indicators considered in this research have positive effect on financial performance of ADBL, CZBIL and HBL Bank..

Hence the results show that ADBL, CZBIL and HBL had good liquidity position and profitability position. The loan to total assets ratio of HBL was greater than that of ADBL and CZBIL. Non-performing loan of ADBL bank was satisfactory but CZBIL and HBL need to improve in that ratio. The average deposits ratios of all banks were satisfactory. Return on assets of ADBL was better than CZBIL and HBL. It implies that ADBL had higher efficiency in the utilization of the total assets and vice versa. The correction analysis is carried out respectively to examine the nature and extent of the relationship between the variables. The outcome of the correlation coefficient between total loan and advance and total deposit and total loan and advance and net profit are positive. To be able to cope with situation it is important that banks should maintain its financial health and expands theirs activities.