Analysis of Financial Performacne of Selected Commercial Banks in Nepal
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Department of Management
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.