TABLE OF CONTENTS

CHAPTER I: INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Research Hypothesis 4
1.5 Significance of the Study 5
1.6 Limitation of the Study 5
1.7 Organization of the Study 6
CHAPTER II: REVIEW OF LITREATURE 7
CHAPTER III: RESEARCH METHODOLOGY 9
REFRENCES 11

CHAPTER I: INTRODUCTION
Background of the Study
Financial sector is the backbone of economy of a country. It works as a facilitator for achieving sustained economic growth through providing efficient monetary intermediation. A strong financial system promotes investment by financing productive business opportunities, mobilizing savings, efficiently allocating resources and makes easy the trade of goods and services. Several studies (McKinnon, 1973; Levine, 1997) have reported that the efficacy of a financial system to reduce information and transaction costs plays an important role in determining the rate of savings, investment decisions, technological innovations and hence the rate of economic growth.
Financial development of a country largely depends on effective mobilization of its internal resource. Banks and Financial institutions play pivotal role in the development of the country by performing the task of effective mobilization of its internal resources. It helps in growth of agriculture, trade, commerce and industry of national economy. The banking sector is largely responsible for collecting public deposit in various in various types and deploying these in the society by lending in different sectors of economy. It renders service to the people in financial matters, and its magnitude of action is extending day by day.
A competitive banking system promotes the efficiency and therefore important for growth, but market power is necessary for stability in the banking system. Commercial bank holds a large