Executive Summary/Abstract

Financial institutions like banks are the replicable of modernization of the society and
play a vital role in the development of economic growth of the country. Economic
activity could not survive without the continuing flow of money and credit in the
market. The economy of all market oriented nations depends on the efficient
operations of complex and delicately balanced system of money and credit. Banks are
indispensable element in these systems. Commercial banks furnish necessary capital
needed for trade and commerce for mobilizing the dispersed saving of the individuals
and institutions. They provide the bulk of the money supply as well as the primary
means of facilitating the flow of credit.
The present study regarding the financial performance of the two banks namely, HBL
and NBBL has been conducted to highlight the hidden implications of the figures
portrayed in the balance sheet of the banks by interpreting their cause effect
relationship with regard to their financial performance and to identify their
contribution to the national economy. The financial statement of five years from
2068/69 to 2072/73 has been examined to fulfill the objective of the study.
The objectives, functions, policies and strategies of joint ventures banks have been
emphasized and the performances of the two sample banks have been analyzed. The
main purpose of selecting these two banks is, they have been offering all kinds of
available facilities available in banking sectors in the country. The study is mainly
based on the secondary data publicly available in the NEPSE data base and the annual
report of respective banks. The collected data of the banks for the study purpose are
thoroughly processed, tabulated for the required format; different measures of the data
have been calculated using different financial tools with the best effort.