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Car of Nepali Bank

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Submitted By ushapanth
Words 686
Pages 3
Introduction:
We have chosen two commercial banks on the basis of highest market capitalization and those banks are Nabil Bank and Nepal Investment Bank limited to do the comparative analysis under the CAMELS approach. Modern commercial banking industry in Nepal begins from 1937, when Nepal Bank limited was incorporated. The banking sector has been undergoing a complex, but comprehensive phase of restructuring since 1991, with a view to make it sound, efficient, and at the same time forgoing is links firmly with the real sector for promotion of savings, investments and growth. Although, banking sector performance is not expected till the completion of reforms. But we can see some sign of improvement and can be visible in some indicators under the CAMELS framework. Financial institutions specially “A” class commercial banks play very significant role in the national economic and social development. Joint venture banks are the key player among the ‘A’ class commercial banks so they have also very important role to play for the national economic and social development. Under this approach bank should enhance capital adequacy, strengthen asset quality, and improve management, increase earnings and reduced sensitivity to various financial risks.
CAMELS analysis is recently developed performance evaluation techniques. With the help of CAMELS analysis of respected commercial banks, we can figure out the existing situation of the joint venture banks and their contribution for the nation. CAMELS are an acronym for six measures. Capital adequacy, Asset quality, management soundness, earnings, liquidity and sensitivity to market risk. CAMELS system can be taken as a part to evaluate the bank performance.
Objective of study:
• To study the comparative analysis of the two commercial bank under the CAMELS approach Sources of data:
We have used secondary source of data

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