1 AIT Asian Institute of Technology

A comparative study on the financial performance of joint venture banks and domestic private commercial banks in Nepal

AuthorRegmi, Deep Chandra
Call NumberAIT RSPR no.SM-07-30
Subject(s)Banks and banking--Nepal

NoteA research study submitted in partial fulfillment of the requirements for the degree of Master in Business Administration
PublisherAsian Institute of Technology
AbstractThe commercial banking industry in Nepal is competitive in terms of banking services, and interest rates offered by different banks. The emergence of joint venture commercial banks in Nepal during mid 1980's has added more value-added banking services to the industry and imposed more challenges to the existing domestic commercial bankers. This research study has analyzed the major financial performance indicators of joint venture commercial banks and domestic private commercial banks in Nepal from 2002-2003 to 2004- 2005 period. The overall financial performance indicators of each group of banks have been analyzed under four major indicators namely, capital adequacy, asset quality, earning and profitability and liquidity risk. This research has also analyzed the three year trend (from 2002- 2003 to 2004-2005) on major financial performance indicators. The analyses in this present research study are quantitative and the data is from the financial statements (balance sheet, income statement and cash flow statement) of nine joint venture banks and six domestic private commercial banks. The analyses are based on calculated values for major financial performance indicators. The financial performance indicators, measured against the Central Bank standards, shows favorable performance of joint venture commercial banking industry during 2002-2003 to 2004- 2005 in the four major indicators analyzed in this present research study. Whereas, domestic private commercial banks performed below acceptable level in most of the asset quality, earnings and profitability and liquidity risk indicators during 2002-2003 to 2004-2005 except for capital adequacy indicators.
Year2007
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Tang, John C. S.
Examination Committee(s)Kauranen, Ilkka;Zimmermann, Willi;
Scholarship Donor(s)His Majesty King of Thailand
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007


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