A Comparative Study of Cash Flow Statement Analysis of Nepalese Commercial Banks (With Reference To Standard Chartered Bank Limited, Nepal SBI Bank Limited And Everest Bank Limited.)

Abstract

The statement of cash flow is a circular part of financial reporting. The study was carried out to explore the key determinants of cash flow analysis of Standard Chartered Bank Ltd., Nepal SBI Bank Ltd. and Everest Bank ltd. using the data sets available of the company over the periods of five years (2070/071 to 2074/075). The major objectives behind this study is to analyzed the fluctuation of cash flows of selected banks, to analyze the factors those affect the cash flows of them and to analyze the liquidity and profitability position of them. The cash flow of selected banks is dependent variable while long term financing, operating profit, non – cash transactions, profitability and liquidity are taken as independent variables. Descriptive research design is to generalize the study. All 28 commercial banks are taken as population and three banks are taken as sample. The study finds that cash flow from operating activities, investing activities and financing activities of these banks are fluctuating over the time. Therefore it is conclude that these banks are inconsistent in terms of their cash flows which indicate higher risk for the investors. Therefore, an effort has been made in the study to provide a possible suggestive framework for the better cash management.