comparative study of financial performanceof nepalese commercial banks.
A comparative study of financial performance of Nepalese commercial bank
1. Introduction
1.1 General Background of study:
In Nepalese banking concept, the history of banking is not long. But it is found that the banking transactions are conducted in ancient time. Nepal bank limited was the first bank in Nepal established in 1994b.s .later Nepal Rastra Bank; central bank was established in 2013 B.S. with an objective to provide the policy decision, guidance and control the banking and to monitor this sector. Rastriya Banijya Bank is a government owned commercial bank was established in 2022b.s. NIDC(Nepal industrial development corporation) and agriculture development bank limited(ADBL) was established in 2020b.s.the joint ventures bank’s increased dramatically after restoration of democracy when the government adopted liberal and market oriented policy.
Nowadays there are many number of commercial and Development banks and other financial institutions are in operation in Nepal. The commercial banks are in Category A by Nepal Rastra Bank while Development bank and finances are categorized into Category B and C respectively.
There has been a rapid growth of the banking sector over the last few years. Along with the liberalization process in Nepal, the establishment of banks and financial institutions gathered momentum without creating sufficient base on prudent legal and operational framework. As a result of that the growth of financial institutions took a rapid tempo until 2012. During ten years of 2000s financial institutions were established rapidly, enjoying the liberal licensing policy in the financial system in Nepal without strong economic and financial background on its base. During the period, the number of A- class financial institutions that obtained license for operating banking and financial activities reached 27 from 13 in year 2000, B class institutions reached 79 from 7 and C class institutions reached 79 from 47. Though there was a
1. Introduction
1.1 General Background of study:
In Nepalese banking concept, the history of banking is not long. But it is found that the banking transactions are conducted in ancient time. Nepal bank limited was the first bank in Nepal established in 1994b.s .later Nepal Rastra Bank; central bank was established in 2013 B.S. with an objective to provide the policy decision, guidance and control the banking and to monitor this sector. Rastriya Banijya Bank is a government owned commercial bank was established in 2022b.s. NIDC(Nepal industrial development corporation) and agriculture development bank limited(ADBL) was established in 2020b.s.the joint ventures bank’s increased dramatically after restoration of democracy when the government adopted liberal and market oriented policy.
Nowadays there are many number of commercial and Development banks and other financial institutions are in operation in Nepal. The commercial banks are in Category A by Nepal Rastra Bank while Development bank and finances are categorized into Category B and C respectively.
There has been a rapid growth of the banking sector over the last few years. Along with the liberalization process in Nepal, the establishment of banks and financial institutions gathered momentum without creating sufficient base on prudent legal and operational framework. As a result of that the growth of financial institutions took a rapid tempo until 2012. During ten years of 2000s financial institutions were established rapidly, enjoying the liberal licensing policy in the financial system in Nepal without strong economic and financial background on its base. During the period, the number of A- class financial institutions that obtained license for operating banking and financial activities reached 27 from 13 in year 2000, B class institutions reached 79 from 7 and C class institutions reached 79 from 47. Though there was a