A financial Performance analysis of Nepalese commercial Banks

Abstract

The central aimof this study was to assess the Financial Performance Analysis ofNepalese Commercial Banks.The study was investigated through the availability ofsome of the major financial ratios which reflects the deposit mobilization of anorganization namely Liquidity ratio, asset management ratio, profitability ratio, riskratio and growth ratio. Further the study also uses cash flow statement, statement ofsources and uses of funds and correlation analysis to find the conclusion. The study issolely based on the secondary source of data extracted from the Banking andFinancial Statistics and carried under descriptive and analytical research design. The study found that EBL in most aspects is better in comparison to HBL. As shownby the study the liquidity position, position of growth ratio and the cash flowstatement of EBL is better than HBL. But at the same time all aspects of assetmanagement ratio, net profit growth ratio of growth ratio and CFFOA of cash flowstatement of HBL is comparatively better. Further study confirms that in terms of risktaking EBL is low risk taker than HBL. The results also confirms the pattern ofsources and uses of funds of both the banks are quite same and in terms ofprofitability ratio HBL is better in one aspect i.e. return on working fund then EBL isbetter in other i.e. return on loan and advances. Finally the study concludes that therelationship between total deposits to total loan and advances and total investment ispositive which agrees with the general principle. So overall despite EBL being better than HBL there exists a lacking in the variousaspects of both the organizations which goes with the general assumptions that noorganization is better or worse in all aspects with its competitors. So for both theorganizations there is a lot to look after for its betterment.