PROFITABILITY ANALYSIS OF JOINT VENTURE BANKS IN NEPAL
Date
2024
Authors
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Journal ISSN
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Publisher
Shanker Dev Campus
Abstract
This study provides a comprehensive analysis of the Profitability Analysis of joint
venture banks in Nepal, focusing on Standard Chartered Bank (SCB), Himalayan Bank
Limited (HBL), Nabil Bank, Nepal SBI Bank, and Everest Bank Limited (EBL). This
research used a quantitative research technique. Secondary data were adopted over the
last 15 years from 2008/09 to 2022/23. Joint venture banks have become key players in
Nepal's financial sector, contributing significantly to economic development through
increased capital inflow, efficient resource allocation, and modern banking practices.
The analysis reveals distinct patterns among these banks, highlighting their individual
strengths and weaknesses. Nabil Bank emerges as a leader in profitability, consistently
delivering high returns on assets (ROA) and equity (ROE), underpinned by its diversified
revenue streams and efficient cost management. SCB demonstrates a strong capital
adequacy position, adhering to international standards and maintaining robust risk
management frameworks, which ensure long-term stability. Nepal SBI Bank excels in
liquidity management, showcasing its capacity to meet short-term obligations and sustain
operational resilience. HBL and EBL distinguish themselves in operational efficiency,
attributed to their adoption of innovative technologies, effective branch management, and
customer-oriented service strategies.
By providing a comparative analysis, this research identifies key drivers of success and
areas requiring improvement within Nepal’s joint venture banking sector. The findings
offer valuable insights for stakeholders, including policymakers, investors, banking
professionals, and academics, facilitating evidence-based decision-making.